Immigrants and micro business development in uganda: a study of the kansanga parish, kampala metropolitan area

This mixed-methods study examines the role of immigrant entrepreneurs in developing micro-businesses in Kansanga, a residential and commercial division of Kampala, Uganda. A survey of 102 immigrants engaged in small businesses (68% male; 32% female; mean age = 29.5 years) was complemented by in-depth interviews with 18 purposively selected respondents. Quantitative analysis explored business types, scale, revenues, and motivations, while qualitative analysis identified emergent themes from narratives. The study applied Opportunity Structure Theory and Self-Determination Theory, highlighting how Uganda’s policy framework and individual motivations shape immigrant entrepreneurship. Results indicate that 63% of surveyed immigrants earned income through owner-operated micro-enterprises, mainly in retail trade (52%) and personal services (27%). Most ventures were informal microenterprises (≤4 employees, ≤10 million UGX revenue), consistent with national patterns where 90% of all Ugandan firms are microenterprises. Entrepreneurs expressed strong intrinsic motivation for autonomy and self-sufficiency, reflecting SDT’s focus on autonomy and competence. Nonetheless, 56% cited lack of market opportunities as the main obstacle, followed by competition with locals (39%), discrimination (35%), and documentation challenges (29%). Qualitative findings underscored the role of co-ethnic networks, fairness perceptions, it reveals that immigrant entrepreneurs expressed strong needs for autonomy and competence and faced barriers like discrimination and limited capital. Uganda’s relatively open policy granting refugees rights to work and start businesses creates an enabling environment, though barriers such as limited capital and social exclusion persist. Policy implications include simplifying business registration, expanding financial access, and promoting inclusivity. Limitations include the study’s non-random sample and cross-sectional design. Overall, immigrant-led micro-businesses represent a vital yet overlooked sector of Kampala’s economy with potential to improve urban livelihoods if better supported.