The purpose of the study was to investigate the role of privately owned enterprises on economic development of Mpigi district. The study was based on the findings from 290 respondents out of the sample size of 310 respondents. 290 respondents presented results that were accurate basing on the objectives of the study; To assess the contributions of privately owned enterprises on the economic development of Mpigi district, to analyze the characteristics of privately owned enterprises in Mpigi district, to identify the challenges faced by privately owned enterprises in Mpigi district. Data was collected from the business people in Mpigi district. The findings of the study in this report showed the relationship between privately owned enterprises (an independent variable) and economic development (a dependent variable). By employing bivariate means, it revealed that there was a connection between privately owned enterprises and economic development of (r)= 0.686. The fact that the p-value was 0.020, which was less than 0.05 (p 0.05), and the p-value was significant enough to lead to the conclusion that the two parameters may be slightly positively correlated. There was also a need to for the government to provide financial Aid to the privately owned enterprise owners in order to boost their businesses.