“This study examines the extent to which small and medium sized business in Uganda use formal agreements when purchasing supplies. It also looks at the dispute resolution mechanisms the SMEs use when suppliers do not honour their contractual obligations to deliver supplies on time. The paper is based on a survey with a sample of 422 Ugandan Small Scale Businesses and 417 medium enterprises. The businesses surveyed were drawn from manufacturing, construction, hotels and restaurants, education, wholesale and retail trade sectors. Respondents were managers who deal with the purchasing function within their businesses. The study examined contract enforcement among Ugandan business transactions. Despite being a major engine for business development, studies on contract enforcement by policy makers and
academicians in developing countries remain
sparse.”
