Power Rationing and Performance of Small Medium Manufacturing Enterprises (Smmes) in Urban Authorities Ofuganda: A case of Kampala Central Division

Abstract

The study investigated the effect of power rationing on the performance of small and medium manufacturing enterprises (SMMEs) in Uganda. The specific objectives included: establishing the effect of power rationing on the Not Right First Time measure; establishing the effect of power rationing on the stock turns; and, establishing the effect of power rationing on overall equipment effectiveness, on small and medium manufacturing enterprises. A cross sectional survey design was used. Quantitative and qualitative approaches were used in data collection and analysis. A population of 260 respondents was identified out of which a sample of 162 was taken using both purposive and random sampling techniques. A positive response rate was realised. Key study findings obtained include a positive correlation results for not right first time measure, stock turns and results for overall equipment effectiveness. Based on the findings, the study concludes that: absence of power (Electricity) left SMMEs in paper and printing business equipment idle; making them none competitive, increased capital costs, increased production, and operating costs of doing business with low supplies made. Power was the major source of energy to support the running of paper and printing machinery while the use of generators only increased operation and production costs; power rationing raised paper and print business restart costs, repairs and maintenance. Finally, operation costs and machinery breakdown rose as a result of power rationing. The following recommendations are made; SMME should budget, purchase and install uninterrupted power systems; provide funds for technical staff training, power tariffs be reviewed, prioritize uninterrupted electricity supply, setting up a power backup plan for SMMEs, establish power rationing schedule, extend business and management training programmes, access financial support and increased investment in energy sector.