By Ben Ssebuguzi
The Mehtas group’s diverse growth from the production of sugar and biogas to bio fertilisers to cables and even roses signifies the enduring journey of family businesses as a community practice to advance an understanding of how individuals involved in family businesses collectively learn about family practices and how such practices are created, maintained and transformed across generations.
During their celebrations of the century, President Yoweri Kaguta Museveni on behalf of the NRM and government hailed the group for their diversified portfolio but also appreciated them for responding to NRM’s decision to return Asian properties which has immensely contributed to development of the country.
Why family businesses?
Running a business is not easy, But building a business with family can be even harder. The late Henry Ssentongo, a man well known for designing prime properties in Uganda, East Africa and beyond trading under Ssentoogo and Partners did not realise his dream of a successful family business due to family wrangles. There are many cases in Uganda like Ssentoogo, which are a seaming problem in the country in supporting the growth of family businesses with generation succession like Mehta.
President Yoweri Kaguta Museven’s messages on family businesses have always stayed genuine. He has often argued family members to consolidate their Assets under a family company to address land fragmentation and foster family cohesion. An enduring family business must have practices that facilitate information and resource-sharing relationships between family members and non-family members.
When you think of a family-owned business, you may imagine the occasional small mom-and-pop store which starts with a humble background to a global retail store like Walmart.
Sam Walton of Wal-Mart which he started in 1962 left 50% of the company’s equity to his wife and children before he died in 1992. Many of Walton’s family members have worked at the company and served on the board of directors over the years hence necessitating our country to make enabling laws and policies that promote family businesses in Uganda.
In UAE, there is a family business law navigating the new regulatory regime which aims to support the sustainability and growth of family businesses, in turn supporting the commercial competitiveness of UAE.
In the same way, Uganda should put in place platforms for arbitration of family business cases where people can ably get assisted in order to harness the benefits of family businesses. Universities should make family businesses as a course module in training graduates in succession planning, family governance models and wealth management as a compulsory course unit.
In conclusion, family business figures do not lie. There are 5.5 million family businesses in the United States which account for 57 per cent of the GDP and 63 per cent of the labour market.
On a lighter note, a successful family business can start with a start-up capital equipment donated by the Office of the National Chairman of NRM headed by Hajjat Hadijjah Namyalo or It can as well be a successful family farm of coffee or cattle which can turn around the fortune of our families.
Long live General Yoweri Kaguta Museveni, Longlive Hajjat Uzeiye Namyalo SPA and Manager ONC
The writer is the Head of Research at ONC Kyambogo!
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