The Impact of fiscal policy on liquidation of small to medium enterprises. A case of Marondera Zimbabwe

Author

Togara, Patricia P

Title

The Impact of fiscal policy on liquidation of small to medium enterprises. A case of Marondera Zimbabwe

Abstract

Fiscal policies are imposing adverse challenges for Small to Medium Enterprises (SMEs), usually favouring large enterprises through better tax relief and subsidies. SMEs experience limited capital access and weak policy representation, negatively affecting their competitiveness and ability to exploit fiscal opportunities. "It is imperative to enhance SME representation when formulating policies, create focused support mechanisms, and boost financial resource access. This will level the playing field and enable the SMEs to thrive. The main objective of this study is to examine the relationship between fiscal policy and liquidation of Small to Medium Enterprises.
The research identifies key issues such as high tax burdens, complex tax regulations and limited access to credit, which adversely affect the financial performance and sustainability of SMEs. Through a mixed-methods approach including surveys and interviews, the study reveals that many SMEs struggle with compliance and perceive fiscal policies and are detrimental to their operations. The findings emphasize the need for enhanced representation of SMEs in policy formulation along with targeted fiscal measures such as tax relief and simplified regulations. Ultimately this research aims to provide actionable recommendations to policymakers to create a more equitable fiscal environment enabling SMEs to thrive and reduce liquidation rates. The study contributes to the existing body of knowledge on fiscal policy and its implications for small business sustainability in Zimbabwe.

Date

June 2025

Publisher

BUSE

Keywords

Fiscal policy

Liquidation of SMEs

Marondera

Supervisor

Nil