MJAMR

The Effect of Taxation Awareness on Financial Performance of Small-Scale Enterprises in Kanungu District

Jorame Nayebare Kakondere, Dr. Veronica Namulondo


Abstract

The study investigated the effect of taxation awareness on the financial performance of small-scale enterprises (SSEs) in Kanungu District, Uganda. A cross-sectional survey design was employed with a sample size of 160 respondents selected through stratified random sampling. Data were collected using structured questionnaires and analyzed using descriptive statistics and Pearson correlation analysis. Results revealed that taxation awareness had a significant positive relationship with financial performance (r = 0.687, p < 0.01). Specifically, 68.8% of respondents demonstrated moderate taxation awareness, while 73.1% reported moderate financial performance levels. The study concluded that enhanced taxation awareness significantly improved compliance rates, record-keeping practices, and ultimately financial sustainability among SSEs. Recommendations included implementing targeted tax education programs, simplifying tax regulations, and establishing support mechanisms for SSEs to enhance their understanding of tax obligations and benefits.

Keywords

Taxation awareness financial performance small-scale enterprises tax compliance Kanungu District
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Jorame Nayebare Kakondere & Dr. Veronica Namulondo (2026). The Effect of Taxation Awareness on Financial Performance of Small-Scale Enterprises in Kanungu District. Metropolitan Journal of Academic Multidisciplinary Research, 5(2). https://journals.miu.ac.ug/pages/article.php?article_id=201

More in This Issue

View full issue →
31
Provision of Scholastic Materials and Students’ Academic Performances in public secondary schools in Isingiro District
Kirabo Fortunate1, Prof Edris Kasenene (PhD)2
Scholastic materials Students’ academic performance Public secondary schools& Parental engagement
32
Relationship Between Access To Education And Employment Rates In Ntungamo District
Nabaasa Mark1 , Dr Friday Christopher (PhD)2
Access to education employment rates educational attainment youth unemployment
34
Relationship Between Accounting Information System And Quality Of Financial Reporting In Kampala City Council Authority.
Mukera Petwa1 , Mwesigwa Henry2
Accounting information system financial reporting quality system quality information quality
35
Relationship Between Audit Practices Relationship Between The Financial Performance Of Selected SMEs In Wakiso District.
Magezi Allan 1 , Dr. Moses Ntirandekura, PhD2
Audit practices financial performance small and medium enterprises internal audit