Taxation and performance of small scale businesses in Uganda: a case study of Kansanga Market-Kampala
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Date
2016-05
Authors
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Publisher
Kampala International University.College of Economics and Management
Abstract
The study sought to examine the relationship between microfinance institutions and economic
growth in Tanzania in Chnnya district, Mbeya in Tanzania. The study objectives were; to
establish the contribntions of microfinance institutions towards economic growth, to identify the
challenges facing microfinance institutions in regard to economic growth and to examine
relationship between microfinance institutions and economic growth. A cross sectional survey
was used in the course of the study. Both qualitative and quantitative data was gathered in order
to establish the relationship between the independent and dependent variables, so as to examine
the relationship between microfinance institutions and economic growth. The study took place in
Chunya district, Mbeya, Tanzania. The district was purposely selected because of its' convenient
location and also bore the necessary and required study elements. The study population involved
58 participants where 10 top authorities of the Institution, 15 officials from selected microfinance
institutions , 8 officials from the Ministry of Trade and 25 local people who were found
available. Purposive sampling was also used to select only respondents for the researcher to
attain the purpose of the study. Data was collected from primary and secondary sources using
questionnaires and interviews. After collecting data, the researcher organized well-answered
questionnaire, data was edited and sorted for the next stage. The data was presented in tabular
form, pie charts and bar graphs with frequencies and percentages. The study also found out that
the less privileged acquire financial services such as loans through an informal relationship,
which might prove to be costly and unreliable. It was revealed that unprivileged people might
have profitable business plans, but they lack sufficient funds to meet the start-up costs. The study
also concludes that when individuals are given decision-making power, they generally make
decisions that will be optimal for their families. The study recommends that there is need to
introduce interest rate ceilings. To minimize the heavy transaction costs that are associated with
rural credit operations, there is need to provide incentives to MFis to increase rural outreach. The
is need for a policy incentive structure for capacity building to act a step to the right direction
supported by govermnent, key donors and other stakeholders to provide coordinated donor
funding mechanism for microfinance capacity building based on agreed upon best practices and
cost sharing basis to enhance impact, market responsiveness and cost sharing basis (Adams,
I 992).
Description
Research report submitted in partial fulfillment of the requirements for the a ward of the bachelors degree of Business Administration (Accounting and Finance) of Kampala International University
Keywords
Taxation, Performance, Businesses i, Kampala