The impact of taxation on financial performance of small-scale Businesses in mukono central division
| dc.contributor.author | Kevin Bagonza | |
| dc.date.accessioned | 2026-08-24T13:14:45Z | |
| dc.date.available | 2026-08-24T13:14:45Z | |
| dc.date.issued | 2026-05-29 | |
| dc.description | Undergraduate | |
| dc.description.abstract | This study examined the impact of taxation on the financial performance of small-scale businesses in Mukono Central Division, Uganda. The study specifically focused on evaluating the effect of tax compliance, tax rates, and tax administration on the financial performance of small-scale businesses. The study adopted a cross-sectional research design, which enabled the collection of data from respondents at a single point in time. The study population consisted of 150 owners and managers of small-scale businesses operating within Mukono Central Division across sectors such as retail trade, hospitality, manufacturing, and services. Using Krejcie and Morgan’s (1970) sample size determination table, a sample of 108 respondents was selected through stratified random sampling to ensure representation from the different business categories. Primary data were collected using structured questionnaires, while secondary data were obtained from relevant literature, reports, journals, and government publications. Data were analyzed using the Statistical Package for Social Sciences (SPSS), employing descriptive statistics such as frequencies, percentages, and means, as well as inferential statistics including correlation and regression analysis. The findings of the study revealed that tax compliance positively influences the financial performance of small-scale businesses by promoting proper financial record keeping, transparency, and improved access to financial opportunities. The results also showed that tax administration significantly affects business performance, where efficient, transparent, and simplified tax procedures enhance compliance and reduce operational burdens on businesses. In addition, the study established that tax rates have a substantial impact on financial performance, as high tax rates reduce profitability, limit reinvestment opportunities, and constrain business growth. The study concluded that taxation policies play a crucial role in shaping the financial performance and sustainability of small-scale businesses. While tax compliance and effective tax administration can enhance financial management and stability, excessive tax rates can negatively affect profitability and growth potential. The study therefore recommends improving tax awareness among business owners through education and training programs, simplifying tax administration procedures to reduce compliance costs, and implementing balanced tax policies. | |
| dc.identifier.uri | https://hdl.handle.net/20.500.12311/3582 | |
| dc.language.iso | en | |
| dc.publisher | Uganda Christian University | |
| dc.title | The impact of taxation on financial performance of small-scale Businesses in mukono central division | |
| dc.type | Dissertation |
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