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 →
41
Relationship Between Digital Tax Compliance and Growth of Small-Scale Enterprises in Wakiso District, Uganda
Kabugho Zyane
Digital Tax Compliance Enterprise Growth Small-Scale Enterprises E-Taxation
42
Relationship Between Electronic Fiscal Devices (EFDs) And Tax Compliance Among Informal Sector Businesses In Kampala District.
Namugenyi Magret
Electronic Fiscal Devices tax compliance informal sector fiscal technology
43
Relationship Between Electronic Invoicing On The Level Of Tax Compliance Within The Informal Sector In Kampala District.
Namugenyi Magret
Electronic invoicing tax compliance informal sector digital taxation
44
Relationship Between Employee Training Programs And Organizational Efficiency. A Case Study Of BIDCO Uganda Limited
Naguddi Gloria1 , Kabanda Richard2
employee training organizational efficiency human resource development performance management
45
Relationship Between Fiscal Decentralization And Quality Of Financial Reporting In Kampala City Council Authority
Matembu Benon1 , Zikusooka Enock2
Fiscal decentralization financial reporting quality revenue autonomy expenditure discretion