Impact of taxation on growth of small and medium enterprises:
Loading...
Date
2016-04
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management
Abstract
The topic entitled impact of taxation on growth of small and medium enterprises a case study of
BIDCO Uganda (2013 -2016) was done under the following objectives; to examine the effect of
progressive tax on growth of SMEs in Kampala central division, to examine the effect of
corporation tax on growth of SMEs in Kampala central division and to examine the effect of
regressive tax on growth of SMEs in Kampala central division. The researcher used a descriptive
correlational survey research design where by both quantitative and qualitative approaches in data
collection were used. The researcher used Slovene's Formula to come up with appropriate sample
size to be used in the study and sample size of 80 respondents was selected to participate in the
study. The researcher used the questionnaire which helped her in collecting data. The researcher's
findings were that taxation affe:;t and impact much on the growth of SMEs in Kampala central
division, Kampala district according to the data collected whf.:reby 66% agreed almost in all
perspectives. The researcher's conclusion was that progressive tax impact much on the growth of
SMEs in Kampala central division, Kamp .. la district accordiug tc 66% respondents who agreed
that they ensure valuable evaluation of business, reduce the operational capacity of business had
66% of the respondents, 53% of the respondents agreed that they are responsible for improved
steady operations of SMEs and tax holidays have heired you to invest in other side businesses had
57%, Will direct the growth course of the business had 52% and 41 % agreed that they Provide
avenues for improved organizational sustainability, corporation tax has effects on growth of SMEs
in Kampala central division, Kampala district according to the respondents who strongly agreed
and agreed that there are effects of corporation tax on growth of Sfv1Es in Kampala central division,
Kampala district, majority responder1ts were that there SMEs Enables the legal operation of
busit}esses had 70%, Reduces the sales capacity of small &nd medium enterprise had 69%, reduces
theĀ· profitability of the organizations had' 65%, It caa be used as a marketing tool for the
organizational resources had 64% and Encourages the businesses operation on legal terms had
56% and regressive tax has effects the on grcwth of SMEs in Karr.p:1la c~ntral division, Kampala
district according to 66% respondents who agreed Vvith Reduces the business resources, Can
contribute to collapse of businesses ha<l 62%, reduces the business operational capacities had 52%
of the respondents, 52% of the respondents agreed Increase the operational means of organization
had 45%. The researcher's recommendations were tax collection should be defined with respect
to which government should collect certain truces from small and medium enterprises. This will
avoid the government collecting taxes from the same particular organization, government should
also put a policy in place to avoid iliegal taxes, such as community levy, boys or youth levy and
as well as association or uni0n levy .and taxes should be collected in relati'on to the sizes and profit
of Small scale businesses consid':!ring all other factors that can constrain the progress of such Small
scale busi!iesses as there is a r1~!at:onship between smail scale businesses siz'es and their ability to
pay taxes.
Description
A research report submitted to the College of Economics and Management science in partial fulfillment of the requirements for the Award of Bachelorās Degree in Business Administration of Kampala International University
Keywords
Taxation, Small and medium enterprises, Bidco Uganda (2013 -2016)