If you have ever attended one of those much-dreaded family meetings, the idea of starting up a family business has most assuredly been on the agenda at one point. If there is one thing family members can easily agree on, it is the prospect of starting a venture from which they can generate some cash. What better way than partnering with people you already know and have a relationship with?
Statistically, family businesses contribute around 70% of Uganda’s GDP. That alone proves how vital family businesses are to the country’s economy. Ugandans naturally like starting up a business, be it a small farm with 2 goats or a cassava plantation somewhere in the village. But that said, it is also known that many family ventures fail for no shortage of reasons, such as funding quibbles, poor management, and the ever-so-common unsolved family drama.
Regardless, we have seen many other family businesses in Uganda prosper—Mukwano Group, Luuka Plastics, Spear Motors Limited by Gordon Wavamunno, and the Madhvani Group, to name a few. Family businesses can work.
So, we looked into the secrets of managing a successful family business in Uganda and put together this article to give you credible insights. That way, the next time your family sits down to have the conversation, you’ll be ready with something valuable to say.
Clear Roles Save Relationships
One of the biggest challenges with family businesses is the overlapping of roles. Who’s the boss? Who makes decisions? Who handles the finances? And if that’s not sorted early, prepare for drama.
The most successful family businesses in Uganda have learned to draw the line. Take Crest Foam, for instance. The company has been around since 1987, and owes much of its stability to a clear division of labour between family members and professional management. Everyone knows their responsibilities, which helps prevent unnecessary conflict. A simple case of stay in your lane, and I will stay in mine.
A Family That Plans Together, Stays in Business Together
When a business is just starting, many families plan its growth well, but what often gets overlooked are the succession disputes. There’s a common assumption that the founders will always be involved, yet without proper succession planning, which isn’t just for royalty, many family businesses collapse after the founder dies or retires because no one is prepared for the transition or knows how to handle it.
In Uganda, it’s common to see a thriving business crash simply because the next generation can’t agree on who takes over, and often, when they do, these successors barely have any idea how to run the venture. The Madhvani Group is a classic example of how future planning pays off. Even after facing exile and political disruptions in the 1970s, the family returned, rebuilt, and passed on leadership strategically across generations. It wasn’t by accident; it was planned.
Teach the Young Ones Early
Another overlooked aspect of family business continuity is preparing the younger generation to take over. It’s not enough to simply plan for succession, you have to train for it too. Many founders leave their businesses only to realise that their successors are clueless about how the family business is run. This lack of grooming often leads to the downfall of what could have been a generational empire.
Family businesses in Uganda, like Kiboko Group, have done well by involving the next generation early, bringing them into meetings, letting them shadow operations, and exposing them to the business ecosystem. This is where we buy raw materials; come with me to deliver to these customers…
The goal is to pass on not just the assets, but also the mindset, discipline, and knowledge required to sustain the legacy.
Put Emotions on Mute, Turn Professionalism On
Mixing business with family can be a recipe for disaster if people don’t know where to draw the line, and this has been quite the issue for many to the point that a saying was put up. Simply don’t put family in your business! The reasons vary, but one thing’s clear; family can bring unnecessary complications if roles and expectations aren’t well defined.
Successful family enterprises often function like professional corporations. At Mukwano Group, decisions aren’t made just because someone is uncle so-and-so, they follow corporate governance structures and hire qualified talent, even when it’s not from within the family. This professionalism is part of why Mukwano Group is one of Uganda’s largest conglomerates.
We cover some of these family emotional biases in Why Relatives’ Advice Feels Like an Insult Even When It’s Not
Open Communication is Everything
You’d be surprised how many businesses fall apart over silent frustrations. People don’t say what’s bothering them, until it blows up. Regular communication keeps everyone in the loop and reduces tension. Holding honest, scheduled meetings where everyone has a say (not just the eldest or loudest) goes a long way.
Take businesses like Capital Shoppers, known for their loyal customer base and strong branding. They succeed not just because of smart sales tactics, but because the team is united and well-informed. When challenges arise, they are aligned and work together to find solutions.
Trust is Your Currency
Trust is more valuable than startup capital. If family members can’t trust each other with money, time, or tasks, the business won’t last. Luuka Plastics has grown into a regional giant by embedding trust into its structure—trust in leadership, accountability systems, and delivery. While they’re not perfect, their ability to scale comes from a foundation of trust that keeps everything running smoothly.
Get it in Writing: Family Constitution & Agreements
Ever thought of writing a family constitution? Yes, it’s a thing, just because it’s a family business doesn’t imply everything has to be “Granddaddy said this and that…” A documented family agreement helps keep everyone aligned. It can define who does what, how profits are shared, how decisions are made, and what happens if someone wants out. Businesses like the Alam Group, which have diversified into manufacturing and real estate, rely on formal agreements to navigate the complexities of expansion, and it doubles as a solid starting point for solving operational conflicts within the family working dynamics.
Seek External Advice—Seriously
Sometimes, the best thing a family can do is admit they don’t know it all and find someone who does. Bringing in outside consultants, accountants, or lawyers can offer clarity and save the business from internal blind spots. Many family businesses only stabilise after getting third-party help to mediate or restructure. Take a cue from the House of Dawda Group, whose diverse portfolio in manufacturing and pharmaceuticals has benefited from external input and advisory services.
Why So Many Family Businesses Still Fail
Despite all these success stories, it’s important to acknowledge the many that don’t make it. Most Ugandan family businesses fail due to poor record-keeping, lack of clear leadership structure, internal jealousy, and treating the business like a family donation box rather than a structured entity. In many cases, money is withdrawn for personal use without proper accountability, disrupting cash flow and hindering growth plans.
Decision-making becomes emotional rather than strategic, especially when favouritism or generational entitlement gets in the way. Some family members may feel left out or undervalued, causing rifts that eventually affect operations. And when there’s no proper succession planning, power struggles erupt as soon as the founder steps aside. Without discipline, structure, and foresight, even the best ideas crumble under the weight of internal conflict.
True, family businesses in Uganda are a big deal, but so is the work that goes into making them last. From the likes of Mukwano to Madhvani, the success stories are built on structure, trust, professionalism, and serious planning. So next time your family suggests starting a poultry farm, a salon, or a transport company, pull out this article. You just might save your clan from another broken dream—and instead, help them build a lasting legacy.
