The SME Optimism Index is a survey-based index designed to measure the pulse of the Ugandan SME It is a quarterly survey, wherein the growth expectations of the SME sector are gauged to determine the business conditions in the short run. The survey gauges optimism regarding six parameters namely: volume of sales, net profits, selling prices, new orders, inventories and employees. The Index is widely recognized as an indicator that measures the pulse of the SME sector and serves as a reliable benchmark for investors, researchers, academicians and policy makers. The survey is conducted on a sample of 100 entrepreneurs that are selected from the FSME membership. Respondents to the survey are asked six standard questions on six specified parameters namely: net sales, net profits, selling prices, new orders, inventories, and employee levels. The composite index is calculated as a weighted sum of these six parameters.