IDEAS Insights The stimulus for entrepreneurship: Uganda | Page 6

The legal minimum wage has stagnated at 6,000 Ugandan Shillings ( US $ 1.7 ) per month . Established in 1984 , it is extremely low in today ' s values . At this rate , one month ' s wages is equivalent to the price of a meal in an inexpensive restaurant , serving traditional cuisine . [ 4 ] Although a new minimum wage of 54,000 Shillings ( US $ 15 ) was negotiated between the government and private sector in 2003 , no legislation has so far been passed to implement it . [ 5 ]
Labour activists have reported that government labour oversight practices are insufficient . [ 6 ] Labour inspectors present in only 44 of 112 districts and Occupational Safety and Health standards unenforced due to a lack of resources . Most employers do not give written contracts of employment , resulting in job insecurity and poor union representation for workers . Thus , many prefer informal sector employment to wage employment .
With unstable wages in formal sector jobs and static salaries in many public sector professions , the opportunity cost of switching to self-employment is small , despite entrepreneurship otherwise being considered a high risk career path . In reality , the risk associated with entrepreneurship in Uganda is relatively low , especially considering that people have fewer assets to lose if ventures turn awry , lacking financial capital and savings .
Buses are cramped into a parking lot in Kampala , Uganda . September 01 , 2017 .
Picture : Vivek Shah