The impact of enforcement mechanisms on trading license compliance among small businesses in Kiko market, Mukono municipality
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Date
2026-04-22
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Uganda Christian University
Abstract
This study examined the impact of enforcement mechanisms on trading license compliance among small businesses in Kiko market, Mukono municipality. The study was guided by three objectives that is, to assess the effect of inspection exercises, penalties and fines, and public sensitization on compliance among small businesses in kiko market, Mukono Municipality. A descriptive research design using both quantitative and qualitative approaches was employed. Data was collected from 97 respondents using stratified random and purposive sampling methods, using questionnaires and interviews, and analyzed using descriptive statistics. The findings revealed that inspection exercises are irregular and ineffective, penalties and fines are poorly communicated, and public sensitization is inadequate though highly important. In addition, the research shows that compliance levels are generally low due to expensive licenses, lack of awareness, and inefficiencies in the process. The research concludes that enforcement measures will not be enough to ensure compliance if they are not backed by transparency, justice, and consistent sensitization. The research makes several recommendations such as improving the consistency of inspections, changing the penalty system, increasing awareness campaigns, and making licensing easier for small businesses.
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Undergraduate