The SME Optimism Index is a survey-based tool used to gauge the sentiment of Ugandan small and medium-sized enterprises (SMEs). It's conducted quarterly to assess how SMEs expect their businesses to grow in the short term. The survey measures optimism across six key areas: sales volume, net profits, selling prices, new orders, inventories, and employment.

This index is widely respected as it gives insight into the current state of the SME sector and is a valuable reference point for investors, researchers, educators, and policymakers. The survey involves 100 entrepreneurs chosen from the FSME membership, who are asked six standard questions about their business performance in the specified areas: net sales, net profits, selling prices, new orders, inventories, and employee levels. The composite index is calculated by weighting these six parameters together