RELATIONSHIP BETWEEN TAX IDENTIFICATION AND SUCCESS OF SMALL-SCALE ENTREPRENEURS IN KAMWENGE TOWN COUNCIL, KAMWENGE DISTRICT, A DESCRIPTIVE CORRELATIONAL CROSS-SECTIONAL STUDY.

Abstract

Background

It is on record that most SSEs in Uganda fail in the first two years, the majority employ less than five workers are not growing, and contribute less than 20% to GDP among the various entrepreneurial ventures that emerge in Kamwenge Town Council, few transform into medium enterprises, and few boast of expanded sales, profits, or opening up branches. The study examined the relationship between tax identification and the success of Small-Scale Enterprises in Kamwenge Town Council, Kamwenge District. 

Methodology

The study used a questionnaire method to collect the data. The data was analyzed using descriptive and inferential statics with the help of SPSS version 25. The study used a descriptive correlational and cross-sectional survey design using a sample size of 113 out of a population of 160. 

Results

 Most of the respondents strongly agreed evidenced by a mean of 3.23 and standard deviation of 0.888 that they have been approached by URA about tax matters. Results from indicate that URA staff don’t know about their business as seen by the mean of 3.58 and SD of 0.614, 32. There is a significant positive relationship between tax identification and the success of Small-Scale Enterprises (r=0.383, P=.000). 

Conclusion

It is concluded that there is a significant positive relationship between Tax Payer Identification and the Success of SSEs in Kamwenge Town Council, Kamwenge District. 

Recommendation

The study recommended that for SSEs to succeed, they should find a way of filing their business’ performance early in the financial year to avoid inappropriate assessments by URA, which are high and demand for payment spontaneously.