Effect of Tax Compliance on Small and Medium Enterprise (SME) Growth: A Case Study of SMEs in Kabale District

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Tax compliance significantly enhances financial performance in SMEs, indicated by an odds ratio of 2.448.
Compliant SMEs are 3.34 times more likely to access government support programs and financial services.
Analysis involved 150 SMEs in Kabale District, using multiple logistic regression for data assessment.
Findings suggest that improved tax compliance measures can drive business growth and sustainability in SMEs.

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Logistic regression shows tax compliance boosts financial performance and business growth in SMEs, suggesting improved access to resources.

Collins et al. (2025) studied this question.

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Logistic regression shows tax compliance boosts financial performance and business growth in SMEs, suggesting improved access to resources.