Entrepreneurs urged to embrace tax compliance for business success
Entrepreneurs were encouraged to embrace formal registration, adhere to tax regulations.
Kampala: Entrepreneurs have been advised to prioritize tax compliance and adhere to relevant regulatory frameworks to ensure sustainable business growth.
This call was made during a panel discussion themed “Compliance and why many Ugandan MSMEs fail to seize lucrative business opportunities,” held at Hotel Africana as part of the Global Entrepreneurship Week (GEW) celebrations organized by Enterprise Uganda.
Speaking at the event, Catherine Poran, Chief Executive of Stanbic Business Incubator Limited, highlighted non-compliance as a major reason why many small and medium enterprises (SMEs) in Uganda fail.
“Most businesses are not compliant with the laws. When you are doing business, do it the right way. Compliance means you are doing business the right way, and that’s why, as Stanbic Business Incubator, we skill you to separate good behaviour from bad, enabling your businesses to thrive,” she said.
Poran further noted challenges such as limited access to markets and finance, which hinder business growth:
The Stanbic Business Incubator facilitates linkages with markets through partnerships, including leveraging Stanbic Bank’s network of clients to support suppliers.
Entrepreneurs are encouraged to explore alternatives to bank loans, such as grants, equity investments, and personal discipline in managing resources.
“For one to get a loan, you need to be disciplined. Try grants or equity funding. But for grants, you must be compliant—registered with the Uganda Registration Services Bureau (URSB) and up-to-date with tax payments,” Poran advised.
Christopher Kakande, Partner at Kalinda & Associates, urged entrepreneurs to formalize their businesses and pay taxes diligently:
“Accepting and paying taxes is crucial for survival. Taxes enable government services, such as roads and security, which directly benefit businesses. Avoiding taxes leads to penalties, and these can cripple your business in the long run.”
Kakande emphasized the importance of viewing the government as a business partner:
“When you embrace compliance, you reduce stress and ensure the sustainability of your enterprise. Penalties for non-compliance can quickly escalate, consuming your business.”
Entrepreneurs were encouraged to embrace formal registration, adhere to tax regulations, and adopt innovative approaches to access markets and finance. This, coupled with a compliance-first mindset, is critical for Ugandan MSMEs to thrive in competitive markets and seize business opportunities.
Global Entrepreneurship Week is an annual celebration of business, innovation, and creativity, offering a platform to empower entrepreneurs to overcome challenges and achieve success.
Do you have an advertisement or an article you want to publish? Mail us at theugreports@gmail.com or WhatsApp +256394700683.
