Journal
Metropolitan Journal of Academic Multidisciplinary Research
MJAMR
Relationship Between Digital Tax Compliance and Growth of Small-Scale Enterprises in Wakiso District, Uganda
Kabugho Zyane
| Journal | Metropolitan Journal of Academic Multidisciplinary Research (MJAMR) |
| Volume / Issue | Vol. 5, No. 2 |
| Published | 28 February 2026 |
| ISSN | 3006-4384 |
Abstract
This study aimed at examining the relationship between digital tax compliance and the growth of small-scale enterprises (SSEs) in Wakiso District, Uganda. A descriptive cross-sectional survey design was employed, allowing for data collection at a single point in time. The study adopted a quantitative research approach to establish the relationship between digital tax compliance and enterprise growth. The study targeted registered small-scale enterprise owners and managers operating in Wakiso District. A sample size of 371 respondents was determined using Krejcie and Morgan’s (1970) sample size determination table, and stratified random sampling was used to ensure representation of different business sectors. Data were collected using structured questionnaires comprising Likertscale items measuring dimensions of digital tax compliance such as timely e-filing, accuracy of electronic records, use of EFRIS, and adherence to digital reporting requirements, alongside growth indicators including sales growth, asset expansion, business expansion, and employment growth. The reliability of the research instrument was confirmed through a pilot study, yielding a Cronbach’s Alpha coefficient of 0.81, indicating acceptable internal consistency. Quantitative data were analyzed using SPSS, employing descriptive statistics, Pearson correlation, and regression analysis. Findings revealed a strong positive and statistically significant relationship between digital tax compliance and growth of small-scale enterprises (r = 0.579, p < 0.01). Regression analysis indicated that digital tax compliance accounted for 54.6% of the variation in enterprise growth (R² = 0.546). The study concluded that digital tax compliance significantly enhances the growth of small-scale enterprises by improving financial transparency, credibility, and access to business opportunities. The study recommended strengthening digital tax training, simplifying compliance systems, and providing continuous technical support to enhance sustainable growth of SSEs.
Keywords
Digital Tax Compliance
Enterprise Growth
Small-Scale Enterprises
E-Taxation
Uganda
Cite This Article
Kabugho Zyane (2026). Relationship Between Digital Tax Compliance and Growth of Small-Scale Enterprises in Wakiso District, Uganda. Metropolitan Journal of Academic Multidisciplinary Research, 5(2). https://journals.miu.ac.ug/pages/article.php?article_id=220
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