TAXATION AND PERFORMANCE OF SMALL SCALE BUSINESSES IN KAMPALA CENTRAL DIVISION

ABSTRACT

The purpose of this study was to evaluate taxation and performance of small scale business

enterprises in Kampala Central Division. The study was guided by three research objectives

establish the relationship between taxation and growth of the small scale business enterprises in

Kampala Central Division, to examine the performance of Small Scale Businesses (SSBE's) in

Kampala Central Division and the relationship between taxation and performance of small scale

businesses in Kampala Central Division. The study used both qualitative and quantitative

research design to get an estimation of the respondents' views in regard to the objectives of the

study. The target population was market vendors, shop attendants and customers.

The study therefore used a sample size of 80 respondents from a target population of I 00 through

use of Krejcie, R.V. & Morgan and D.W. (1970) Table. It employed only Random sampling to

woid bias in data presentation. This study also used both primary and secondary sources which

:111 involved data from the field and literature already written by other authors. After data

~ollection, it was ethically analyzed by use of frequency tables and percentages.

'he findings revealed that SSBEs are related to taxes since it influences economic policy goals

)f most businesses and pressurize traders to work hard. Objective two analyzed that small scale

Jusiness enterprises have increased production levels and have increased number of registered

Jusinesses and objective three regarding the relationship between taxation and performance of small

;cale businesses results depicted ways like high performance in market skills and an impact on

ong-term survival and development.

[he study concluded that taxes increase number of registered businesses and that small scale

)Usiness enterprises have helped businesses to balance income and expenditure; however

:hallenges still exist hence recommendations go to tax collection authority to be cooperative

Nith the traders especially owners of the small scale businesses.

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