Taxation and growth of small scale business enterprises in Uganda: a case study of Nakasero market, Kampala district

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Kampala international international: College of Economics and Management
The purpose of this study was to assess the effect of taxation as a consideration on the operation of small scale business enterprises in Uganda and the extent to which taxation affects small scale business enterprises towards growth and achieving their desired goals. From a target population of 85, using random and stratified sampling techniques, a sample of 70 respondents dealing indifferent businesses was selected. Case study research design was used to examine the effect of taxation on growth of small scale business enterprises. Both quantitative and qualitative research approaches were used to describe the data. The study found out that there is a positive relationship between taxation and growth of small-scale business enterprises in Uganda. Low tax rates encourage small scale businesses to access financial support like loans freely; high taxes will promote growth of small scale business enterprises although it may promote illicit activities like smuggling.60% of the respondents agreed that small scale business enterprise' growth depends on taxation policies which is in agreement with Keen and Mintz (2004) who emphasized that taxation policy sets a threshold for optimal trade-off. 47% of the respondents agreed that taxes levied are in line with business structure while 44% agreed that taxation policy of Uganda favors economic growth. This is agreement with (Milchen, 2000) who reported that proper tax policy promotes local production of goods and services.
A dissertation report submitted to the college of economics and management sciences in partial fulfillment of the requirements for the a ward of bachelors in business administration of Kampala international university
Taxation, Small scale business, Business enterprises, Nakasero, Kampala district