Journal
Metropolitan Journal of Academic Multidisciplinary Research
MJAMR
Corporate Taxes And The Business Expansion Of Small Enterprises In Kampala Central Division
Biribawa Mariam, Magala Muhammad
| Journal | Metropolitan Journal of Academic Multidisciplinary Research (MJAMR) |
| Volume / Issue | Vol. 5, No. 6 |
| Published | 30 June 2026 |
| ISSN | 3006-4384 |
Abstract
This study examined the relationship between corporate taxes and business expansion among small enterprises in Kampala Central Division. The research was motivated by growing concerns among small business owners that high tax burdens were stifling economic growth and impeding business development in one of Uganda's most commercially active urban areas. The study adopted a cross-sectional research design with both descriptive and correlational approaches. A sample of 187 small enterprise owners and managers was selected using stratified random sampling from a population of 640 registered enterprises. Primary data were collected through a structured questionnaire validated through pilot testing. Descriptive statistics, Pearson correlation, and multiple regression analysis were employed for data analysis using SPSS Version 26. The findings revealed a statistically significant negative relationship between the corporate tax burden and business expansion (r = -0.574, p < 0.01). Specifically, corporate income tax rates, value-added tax compliance costs, and withholding tax obligations were found to be significant predictors of reduced business expansion. The study concludes that the prevailing tax regime creates disproportionate burdens on small enterprises, limiting their capacity to reinvest profits, hire additional labor, and diversify products. It is recommended that the Uganda Revenue Authority and the Ministry of Finance design differentiated tax policies with lower progressive tax rates for small enterprises alongside simplified compliance mechanisms.
Keywords
Corporate taxes
business expansion
small enterprises
Kampala Central Division
Uganda
Cite This Article
Biribawa Mariam & Magala Muhammad (2026). Corporate Taxes And The Business Expansion Of Small Enterprises In Kampala Central Division. Metropolitan Journal of Academic Multidisciplinary Research, 5(6). https://journals.miu.ac.ug/pages/article.php?article_id=664
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