5 Popular Businesses That Fail a Little Too Often (And Why You Should Be Cautious)

By Eddie Mugulusi

Let’s face it—some businesses look great on paper… until they don’t.

If you’re thinking of starting out in any of these five, this article isn’t here to kill your dream. It’s here to whisper “be careful” in your ear before the dream eats your savings.

Let’s jump in.

1. Retail Outlets (a.k.a. “Duukas”)

These little shops are the heartbeat of many communities. They stock everyday items like soap, sugar, salt—essentials. But let’s talk numbers.

Most duukas operate on tiny profit margins. You sell a bar of soap, and if you’re lucky, you’ve made 200 shillings. Then you sell a matchbox and you’ve added… 80 shillings to your empire.

Now, couple that with limited customer traffic (because your shop is one of ten within a 200m radius), and you start to see the problem.

Add in the fact that many of these businesses double as emergency banks for the household—funding supper, hospital bills, or school requirements—and what you have is not a reinvestable business.

It’s a financial see-saw. And most duukas can’t keep their balance.

2. Eateries (a.k.a. Small Restaurants)

Running a restaurant sounds like fun—until you’re knee-deep in cabbage, fighting with your supplier over the cost of onions, and realizing your chicken stew is actually costing you money.

Restaurants are one of the hardest businesses to make profitable. Why?

Too many moving parts.
Food prices change like mood swings.
Customers are unpredictable.
You have to keep food tasty, portions right, waste minimal, hygiene top-notch, and staff trained.

Many restaurant owners don’t track unit costs. They serve meals at prices that feel “reasonable” but forget to calculate whether those prices leave room for profit. And don’t get me started on how much food is wasted daily.

Without strict cost control, consistent marketing, and a loyal customer base, your dream restaurant becomes a daily expense.

3. Poultry Farming

Ah yes—”I hear poultry is profitable.”

That’s the sentence that has bankrupted many.

The two biggest enemies here? Feed costs and disease.

Poultry feed isn’t cheap. You need to know exactly how much to give, when, and how often—otherwise, your chickens are basically eating your profit.

Now combine that with the risk of disease, which spreads faster than a TikTok trend. One wrong move and half your flock is gone in 48 hours.

Many people jump into poultry with zero planning and no expert support. They’re told, “you can’t fail with chickens,” only to discover that… well, you definitely can.

4. Events Planning

It looks glamorous. Decor, lights, music, Instagram-worthy backdrops. But behind the scenes?

It’s mostly unpaid invoices, unpredictable work, and long dry spells between clients.

Here’s the hard truth: Uganda’s events planning industry is still small. People are warming up to the idea of professional planners, but it’s not mainstream yet.

So unless you’re well-connected, widely known, and actively marketing yourself, bookings will be few and far between. And when they come? Clients want champagne service at porridge prices.

Then there’s the corporate world. You plan the event now… and get paid months later. If you don’t have the financial muscle to survive that gap, your business won’t make it past the third event.

5. Fashion Designers & Tailors

You’ve got talent. You’ve got style. You’ve got that vision.
But sadly, talent isn’t enough in this business.

Tailoring businesses face stiff competition—from cheap Chinese imports and second-hand clothes from Europe. And let’s be honest, a lot of people would rather grab a full outfit from Owino at 15k than wait two weeks for a custom one at 150k.

Even those who love custom clothing tend to buy sparingly—mostly for special occasions like family photoshoots or kwanjula ceremonies.

Then comes the cost of good fabric. It’s expensive, and it pushes your final prices even higher, which scares off more customers. To make matters worse, fashion trends are constantly evolving, and keeping up is almost a full-time job on its own.

The result? A beautiful showroom, great designs, and barely any customers.

Before You Start One of These…

Don’t panic. This isn’t a “don’t try” article—it’s a “don’t dive in blind” article.

If you’re already in one of these industries, it doesn’t mean you’re doomed. It just means you’ll need a sharper strategy than most. Think beyond the hype. Understand the real challenges. Plan like your survival depends on it—because it kinda does.