School of Business (SB) Collections

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Now showing 1 - 5 of 1097
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    Tax knowledge, tax fairness, enforcement strategies and income tax compliance among small and medium enterprises (SMES) in Makindye division
    (Makerere University, 2025-10) Namanya, Innocent
    This study explored the factors that influence income tax compliance of Small and Medium Enterprises (SMEs) that run their businesses in Makindye Division of Kampala Capital City. Very low-income tax compliance is registered by SMEs yet their operations add 20 percent to the country’s GDP and employ millions of Ugandans. Uganda’s tax-to-GDP ratio stood at 12.5% in 2022, below the African average of 16%, largely due to a significant tax gap caused by SMEs’ widespread tax evasion and aggressive tax avoidance particularly practiced by the informal sectors within the urban settings. The specific objectives of this research were; to examine the relationships between income tax knowledge and income tax compliance, to establish the relationship between tax fairness and income tax compliance, to establish the relationship between enforcement strategies and income tax compliance and to examine the combined effect of tax knowledge, tax fairness and tax enforcement strategies on income tax compliance of SMEs doing business in Makindye Division. This study adopted a descriptive cross-sectional research design to collect quantitative data from 293 SME owners and managers using structured questionnaires. Data was analyzed using both hierarchical and multiple regression techniques. The results revealed mixed effects regarding tax knowledge: while it was a significant positive predictor of tax compliance when considered alone (B = .409, p < 0.001), it became insignificant in the full model (B = -0.034, t = -0.515, p > 0.05), indicating that its influence may be moderated by other variables. These findings offer partial support for hypothesis H1. Perceived tax fairness emerged as the strongest and most consistent predictor of income tax compliance (B = 0.656, p = 0.000), with its effect remaining robust across all regression models, thereby confirming hypothesis H2. Enforcement strategies also significantly influenced compliance (B = 0.159, p = 0.009), supporting hypothesis H3. However, the introduction of enforcement strategies slightly reduced the effect of income tax fairness, which suggested existence of moderation that could be taking place between these constructs. Generally, the study sums up that improving the way SME owners and managers perceive fairness and establishing enforcement strategies that are more effective in improving income tax compliance among SMEs is more important than having only tax knowledge. The findings provide critical insights for tax policymakers and the Uganda Revenue Authority in efforts to improve domestic revenue mobilization. Subject Keywords; Tax knowledge, Tax fairness, Enforcement strategies, Income tax compliance, Small and medium enterprises, Makindye division.
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    Assessment of public financial management in Uganda: a case of Ministry of Internal Affairs
    (Makerere University, 2025) Otuuru, Isaac
    Public Financial Management (PFM) is a cornerstone of effective governance, ensuring the efficient allocation, utilization, and oversight of public resources. Globally, PFM has garnered significant attention, particularly in the pursuit of sustainable development and economic stability. International organizations such as the International Monetary Fund (IMF) and the World Bank have emphasized the importance of robust PFM systems. The IMF's Public Investment Management Assessment (PIMA) highlights Uganda's advancements in institutional design for public investment management, noting significant improvements in project appraisal and preparation processes (International Monetary Fund (IMF), 2022). Similarly, the World Bank underscores the necessity of deepening PFM reforms to enhance fiscal sustainability and long-term economic growth in Uganda (World Bank, 2022). In the East African context, countries like Kenya, Tanzania, and Rwanda have made notable progress in PFM reforms, serving as benchmarks for the region. Uganda has also embarked on significant PFM reforms, guided by the Public Finance Management Act of 2015, which provides a legal framework for budget preparation, expenditure control, and financial reporting. The Ministry of Finance, Planning, and Economic Development (MoFPED) has implemented initiatives such as the Integrated Financial Management System (IFMS) and the Public Expenditure and Financial Accountability (PEFA) framework to enhance financial transparency and accountability (MoFPED, 2025).
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    The uptake of the of the small business recovery fund in Mukono District
    (Makerere University, 2025) Gwere, Janet
    This study aimed to investigate the uptake of the Small Business Recovery Fund (SBRF) in Mukono District. The study had three main objectives: first, to identify the factors that contributed to the uptake of the SBRF; second, to identify the challenges faced by small businesses regarding the SBRF; and third, to recommend strategies to increase the uptake of the fund. The study adopted a quantitative research design and employed a cross-sectional approach. This design allowed for the systematic investigation of phenomena through gathering quantifiable data and conducting statistical and mathematical analyses. The unit of analysis comprised 317 small and medium enterprise (SME) owners in Mukono District. Out of the 317 questionnaires distributed, 200 were completed and returned, resulting in a response rate of 63.1%. The respondents were selected using a combination of convenience and simple random sampling techniques to ensure representativeness and accessibility. Data was collected using structured questionnaires designed to capture relevant information required to address the study objectives effectively. This study identified key factors that influenced the uptake of the Small Business Recovery Fund (SBRF) in Mukono District. Findings showed that a manageable loan application process and affordable interest rates significantly improved fund accessibility. High awareness of eligibility criteria and the removal of collateral requirements further motivated participation among small businesses. However, several obstacles persisted, including complicated application procedures, ongoing collateral demands, insufficient financial literacy, economic instability, and geographic limitations that restricted access and lowered fund utilization. Additional challenges included delays in loan processing and mistrust of financial institutions, both of which negatively affected borrower confidence. To address these challenges, respondents suggested various strategies to increase uptake: streamlining application processes, reducing interest rates, and enhancing financial literacy training were commonly recommended. Introducing government-backed loan guarantees and expanding the network of participating financial institutions were also considered vital for improving access. Furthermore, raising awareness through campaigns, offering flexible repayment options, and digitalizing application procedures were emphasized to promote transparency and convenience. The study concluded that implementing a multifaceted approach that combines procedural simplification, financial support, and capacity building is essential for boosting uptake and ensuring the sustainability of small businesses benefiting from the SBRF.
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    Analyzing cash flow management among Small and Medium Enterprises (SMEs) in Kampala.
    (Makerere University, 2025) Mugere, Faluku
    This study examined cash flow management practices among Small and Medium Enterprises (SMEs) in Kampala. The objectives were to assess current cash flow management practices, identify challenges faced by SMEs in managing cash flow, and propose strategies to improve these practices. A descriptive research design with a quantitative approach was adopted to gather data on a broad range of variables in a single instance. The target population comprised 250 registered SMEs operating within Kampala, spanning various sectors including retail. Using Krejcie and Morgan’s sample size determination table, 152 SMEs were selected, and data were collected through self-administered questionnaires from managerial-level employees, resulting in a response rate of 70%. The demographic analysis revealed that 54.4% of respondents were male, 38.4% held a bachelor’s degree, and the largest departmental representation (29.6%) was from finance. Most respondents had 1 to 3 years of experience in SME or cash flow management, and micro-enterprises with 1 to 5 employees constituted the majority. Findings indicated that a majority of SMEs lacked structured cash flow management practices such as regular forecasting, daily tracking, and reinvestment of profits, which limited their financial stability and growth. Key challenges included delayed customer payments, high operational costs, limited access to affordable credit, poor financial literacy, and blurred lines between personal and business finances. Although some SMEs were aware of improvement strategies like digital financial tools and emergency reserves, adoption was low due to limited skills and resources. The study recommended enhancing financial literacy, improving access to financial tools, and implementing supportive government policies. Future research should explore the role of FinTech in cash flow management, conduct longitudinal studies on sustainability, and compare urban and rural SME challenges.
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    The effect of digitisation on the performance of SACCOs in Uganda
    (Makerere University, 2025) Mworozi, Allan
    This study examined the effects of digitization on Savings and Credit Cooperative Organizations (SACCOs) in Uganda, focusing on financial inclusion, operational efficiency, and the challenges faced during the adoption of digital technologies. Digitization has emerged as a critical force in the financial services industry, with SACCOs adopting mobile money platforms, digital lending systems, and automated record-keeping to expand their reach and improve service delivery. Using secondary data, this study analyzed the impact of digital innovations on SACCO performance, especially in rural regions. The study employed a descriptive approach, which is perfect for examining pre-existing data, to find patterns and connections in the provided data. Through the use of secondary sources, the study aims to gather and assess data from a number of studies, articles, and publications on SACCOs in Uganda. The study is aimed at understanding the effect of digitization on the performance of SACCOs in Uganda. The findings revealed that SACCOs leveraging mobile money and digital platforms have significantly improved financial inclusion, with a 25% increase in rural membership between 2016 and 2020. Additionally, digitization has enhanced operational efficiency, reducing loan processing times by up to 60% and cutting administrative costs by 30% due to automation. SACCOs that adopted digital record-keeping also reported an 18% increase in data accuracy and transparency. The study concludes with recommendations for SACCOs, policymakers, and stakeholders to address these challenges. These include increased investment in digital infrastructure, government support for rural connectivity, partnerships with Fintech companies to lower costs, and comprehensive digital literacy programs. By addressing these issues, SACCOs in Uganda can fully harness the potential of digitization, contributing to greater financial inclusion and economic development.