The Impacts of taxation policies on the growth of SMEs in a volatile economic environment. A case study of Buhera district
- Author
- Chakanetsa, Morris
- Title
- The Impacts of taxation policies on the growth of SMEs in a volatile economic environment. A case study of Buhera district
- Abstract
- Small and Medium Enterprises play a crucial role in the economic landscape of both developed and developing economies by fostering employment and growth. However, SMEs frequently face challenges such as high tax rates, unfavorable tax policies impacting profits, and significant tax compliance costs. In this study, the main focus is to examine the impact of tax policies on the growth of SMEs in a volatile economic environment. A descriptive survey design was utilized to analyze 325 SMEs. Data was collected through structured questionnaires from Small and Medium Enterprises respondents. This study employed multiple linear regression to assess the significance of five descriptive variables in relation to SME growth in a volatile economic environment. The findings indicate that tax compliance costs and business experience exhibit a constructive and significant bond with SME growth. Conversely, tax rate and complexities, as well as tax policy, show a statistically significant adverse impact on SME growth. The study also suggests that reducing tax rates for businesses, particularly SMEs, could benefit their growth. Additionally, it recommends that tax policies aimed at private sector should consider the specific needs of SMEs.
- Date
- June 2024
- Publisher
- BUSE
- Keywords
- Taxation policies
- SMEs
- Volatile economic environment
- Supervisor
- N Hove
- Item sets
- Department of Accountancy
- Media
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Morris Chakanetsa.pdf