Effects of Taxation on Performance of Small Scale Business Enterprises: A Case Study of Denevo Bread Bakery in Makindye Division
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Date
2014-06
Authors
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Kampala International University, bachelors degree in business administration
Abstract
The study was carried out to find out the impact of taxes on performance of small scale business
enterprises in Uganda (SSBs), taking a case study of Denevo bread bakery in Makindye
Division. The study aimed at assessing the performance of business enterprises in Denevo bread
bakery in Makindye Division, finding out if tax payers are aware of all their tax obligations,
policies and problems affecting them as well as their businesses. The study assessed the Impact
of Taxation on Performance of selected small scale businesses in Denevo bread bakery in
Makindye Division district and was based on three specific objectives: to determine the level of
Taxation, to determine the level of Performance of selected small scale businesses in Denevo
bread bakery in Makindye Division district, to establish whether there is a significant
relationship between Taxation and Performance of selected small sea.le businesses in Denevo
bread bakery in Makindye Division district. The study applied both qualitative and quantitative
research designs where interviews and questionnaires were used. Data was collected from both
primary and secondary sources. Data was processed and analyzed using formal tables, pie charts,
narrative text, and correlation to find out the relationship between the impact of taxes and
performance of small scale businesses. A total of 50 respondents were considered out of the
entire population in the. The findings indicated that the performance of SSBs is affected by stock
levels, capital employed, daily expenses, daily sales and the average amount of taxes paid
annually. Most business owners are aware of taxes paid, uncertain of the mode of assessment and
little assistance is given as regards tax awareness. The findings revealed the problems faced by
the tax payers as regards mode of assessment, collection and tax collectors, inefficiency by tax
collectors, loss of equipment, loss of sales and loss of stock as a result of taxes.
Recommendations on impact of taxes included; improvement on the method of collecting taxes,
educating the business community about its different tax rates, introducing a scheme that allows
tax payers to pay the tax obligation in installment, and finding a way of assessing the tax the
SSBs should pay early in the financial year in order to give enough time to the business to pay up
their duties rather than make an assessment and demand for payment spontaneously.
Description
A Research Report Submitted to the College of Economics and Management Sciences in Partial Fulfillment of the Requirements for the Award of the Degree of Bachelor of Business Administration of Kampala International University
Keywords
Taxation, Small Scale Business Enterprises, Denevo Bread Bakery