Tax Incentives and Financial performance of Small and Medium Sized Enterprises in Kabale District, Uganda

Authors

  • Roggers Collins Aheebwa Department of Public Administration and Governance, Faculty of Business, Economics and Governance, Bishop Stuart University, Uganda
  • Benon Muhumuza Department of Public Administration and Governance, Faculty of Business, Economics and Governance, Bishop Stuart University, Uganda.
  • Noel Kiiza Kansiime Department of Public Administration and Governance, Faculty of Business, Economics and Governance, Bishop Stuart University, Uganda.
  • Crispus Tashobya Directorate of Research, Grants and Resource Mobilisation, Africa Renewal University, Kampala, Uganda.
  • Vicent Byamukama Vice Chancellor, Africa Renewal University, Kampala Uganda.
  • Pereez Nimusima Department of Business Administration, Faculty of Business and Management Sciences, Mountains of the Moon University, Fort Portal, Uganda

DOI:

https://doi.org/10.47672/ije.2770

Keywords:

Tax Incentives, Financial Performance, Small and Medium Sized Enterprises Investment Allowances, Tax Exemptions, Uganda

Abstract

Purpose: The purpose of the study was to determine the effect of tax incentives on financial performance of SMEs in Kabale district Uganda. This study was guided by the normative theory and the political systems theory.

Materials and Methods: The study employed the descriptive research design. The data was collected using structured questionnaires. Data was later edited, coded, and fed into the SPSS computer package to generate both inferential and descriptive statistics.

Findings: The study findings as indicated by the coefficients of determination show that tax exemptions have a significant impact on growth of SMEs (β= .325, t=4.075, p<0.000). It was observed that there are various tax incentives that have been formulated to accelerate the financial performance of SMEs in Uganda although their practical implementation has not been fully realized.

Unique Contribution to Theory, Practice and Policy: The study recommends that the development of policies by Ugandan government geared to accelerate the financial performance of SMEs should have the target beneficiaries’ input before implementation to prevent the formulation of impractical and undesirable policies. The government should also provide frequent trainings to SMES on the available incentives, which they could leverage on to boost their financial performance.

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Published

2025-10-06

How to Cite

Aheebwa, R. C., Muhumuza, B., Kansiime, N. K., Tashobya, C., Byamukama, V., & Nimusima, P. (2025). Tax Incentives and Financial performance of Small and Medium Sized Enterprises in Kabale District, Uganda. International Journal of Entrepreneurship, 8(1), 38–52. https://doi.org/10.47672/ije.2770

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