Government Incentives and Performance of Small and Medium Enterprises. Acase Study of Kansanga Market, Kampala Uganda.
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Date
2019-08
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Publisher
Kampala International University, College of Economics and Management.
Abstract
The study sought to determine the effect of government incentives on the performance of small and medium enterprises in Uganda and the specific objectives were; to determine the government incentives given to small and medium enterprises in Uganda, to determine the level of performance of small and medium enterprises in Uganda and to determine the relationship between government incentives and performance of small and medium enterprises in Uganda. The study used a survey research design and data was collected from 80 respondents from kansanga business area.
The findings of the study revealed that the government provides incentives to the small
and medium enterprises except that it does not give them free land, it does no completely subsidize them and it does not give tax holidays to them. The findings of the study also revealed there is an improvement in the performance of Small and medium enterprises in Kansanga and the study revealed that the government policies on taxation do not favor the growth of SMEs. Furthermore, the findings of the study revealed that there is a strong positive relationship between government incentives and performance of SMES as it was revealed that an improvement in government incentives improves the performance of SMEs by 75%.
The study recommended that the government should try to give free land to SMEs as they contribute to the Gross Domestic Product of the country, the government should give tax holidays to Small and medium enterprises in order to enable them to expand quickly, the government should completely subsidize domestic SMEs to enable their rapid growth, the government should formulate favorable tax policies that can favor the growth of small and medium enterprises as the finding revealed that the current policies are unfavorable and that the government should provide more incentives to SMEs as it was revealed that an improvement in government incentives improves the performance of SMEs.
Description
Research Report Submitted to The College of Economics and Management in Partial Fulfilment of The Requirements for The Award of a Bachelor of Business Administration of Kampala International University
Keywords
Government Incentives, Performance, Small and Medium Enterprises