The purpose of this paper is to analyze
how networks between small business
owners (SBOs) in the informal economy of
agriculture in the East African country
Uganda can be a tool to overcome the
barriers caused by institutional voids, in
order to upgrade agricultural value chains.
The analysis suggests that weak or absent
institutions in the agricultural sector lead to
various impediments that especially affect
SBOs operating in the informal sector of
agriculture. Yet, SBOs seem to have found
a way to overcome those hurdles through
establishing business networks to access
capital, resources and markets. Moreover,
those networks are based on informal,
internal mechanisms like bylaws or
internal guidelines that have positive
impact on SBOs’ work. Subsequently, with
the help of networks better quality and
larger quantities can be produced, leading
to an upgrade of the respective value
chain.