Project overview
Focusing on tailoring, welding, and carpentry firms in Kampala, the study examines why businesses often rely on informal collaboration rather than expanding internally or merging into larger organizations. Using focus group discussions, business network mapping, and detailed firm and worker surveys, the research explores the trust-based arrangements that influence the sharing of labour, assets, credit, customers, and production activities.
By examining the incentives and organizational structures that underpin these informal business relationships, the study seeks to better understand the constraints limiting firm expansion, specialization, and industrial transformation. The research provides new insights into how firms organize production in environments where formal contracts are costly or difficult to enforce.
Research impact
The project contributes to a deeper understanding of the organizational challenges facing small enterprises in developing economies. Its findings will inform policies and programmes aimed at strengthening business ecosystems, improving labour market efficiency, and promoting the growth of more productive and competitive firms in Uganda.
