-
Impact Of Taxation On The Operation Of Small And Medium Scale Business
[A CASE STUDY OF SMEs IN ABEOKUTA METROPOLIS]
CHAPTER ONE -- [Total Page(s) 4]
Page 2 of 4
-
-
-
Taxation can help small business to get a high profit target bearing in mind that they will pay tax from the profits they make. From the above assertion, it is obvious that taxation has some impact on the establishment of small business. In the economy, there are manipulations of taxation rules for the encouragement of small business. This research work is an attempt to Enquirer whether a high incidence of corporate tax will go a long way to reducing the number of small business establishments which can bring about unemployment in the country.
1.2 Statement of Problem
There is a sweeping and effective revenue mobilization drive in Ogun State, most of which are carried out by contracted agencies that sometimes come up with various taxes and levies and impose them on business operators in the state. This numerous taxes and levies have been dwindling business fortunes of most operators with lots of consequences which include cost of unemployment, slowing down of economic activities in the state and even loss of revenue by the state due to the fact that the taxes are not optimal and hence when business shot down, they will no longer be there to pay any tax at all.
1.3 Research Objectives
The main objective of this research is to ascertain the impact of taxation on small and medium scale enterprises in Abeokuta metropolis. The specific objectives include:
1. To examine the impact of tax holiday on profit in SMEs.
2. To ascertain the impact of tax holiday on productivity in SMEs.
3. To know the impact of progressive tax on productivity in SMEs.
4. To examine the impact of progressive tax on profit in SMEs.
1.4 Research Questions
To achieve the purpose of the study research questions were formulated as follows:
(1) What is the effect of tax holiday on profit in SMEs?
(2) What is the impact of tax holiday on productivity in SMEs?
(3) What is the effect of progressive tax on profit in SMEs?
(4) What is the impact of progressive tax on productivity in SMEs?
1.5 Research Hypothesis
Null Hypothesis: Tax holiday has no impact on profit in SMEs.
Null Hypothesis: Tax holiday has no impact on productivity in SMEs.
Null Hypothesis: Progressive tax has no impact on profit in SMEs.
Null Hypothesis: Progressive tax has no impact on productivity in SMEs.
1.6 Significance of the Study
This study will benefit investors, policy makers and academicians.
For investors, the study will create awareness on the procedure of starting business in capital city of Ogun state (Abeokuta) and various charges and taxes levied by the state government.
For policy makers, the study will reveal the effect of their fiscal policy specifically taxation on small and medium scale businesses in the state.
For academicians, the study will add to the existing stock on study of small and medium scale enterprise and taxation.
1.7 Limitations
The research is limited to few SMEs in Abeokuta metropolis alone, as it will be difficult to generalize the findings to other states. Another limitation faced by the researcher in the course of carrying out this study was getting accurate information and data.
CHAPTER ONE -- [Total Page(s) 4]
Page 2 of 4
-
-
ABSRACT - [ Total Page(s): 1 ]ABSTRACTSmall and Medium Enterprises play a very important role in development of the Nigerian Economy. Making up about 97% of the entire economy, they serve as a source of employment generation, innovation, competition, economic dynamism which ultimately lead to poverty alleviation and national growth. Tax policy is one of the factors that constitute the Small businesses’ economic environment. This research work tries to establish if any relationship exists between the growth of Small bu ... Continue reading---
QUESTIONNAIRE - [ Total Page(s): 3 ]QUESTIONNAIRETHE IMPACT OF TAXATION ON THE OPERATION OF SMALL AND MEDIUM SCALE BUSINESS (A CASE STUDY OF SMEs IN ABEOKUTA METROPOLOIS)COLLEGE OF HUMANITIES MANAGEMENT AND SOCIAL SCIENCESDEPARTMENT OF BUSINESS AND ENTREPRENEURSHIPKWARA STATE UNIVERSITY, MALETE.Dear Sir/Ma, This questionnaire is designed to acquire information on the effect of entrepreneurial characteristics on business performance in Nigeria. In order to enable me carry out this research work. All information collecte ... Continue reading---
TABLE OF CONTENTS - [ Total Page(s): 2 ]TABLE OF CONTENTSContentsCERTIFICATION DECLARATION DEDICATION ACKNOWLEDGEMENTS TABLE OF CONTENTS LIST OF TABLES ABSTRACT CHAPTER ONE INTRODUCTION 1.1Background of the Study 1.2 Statement of Research Problem 1.3 Research Aim and Objectives 1.4 Research Questions 1.5 Research Hypotheses 1.6 Significance of the Study 1.7 Limitation of the Study 1.8 Scope of the Study 1.9 Outline of Chapters 1.10 Operationalization 1.11 Defini ... Continue reading---
CHAPTER TWO - [ Total Page(s): 7 ]Mugulusi (2001) found out that a large proportion of business community
is ignorant about taxes they pay and how these tax are commuted. Most
Nigerians have poor/lack understanding of the rationale of taxes and
knowledge of different taxes imposed on them. As a result, the tax
compliance in Nigeria is still very low. Besides that, various surveys
conducted on small and medium scale businesses in Nigeria suggest that
about 60% of them keep no records at all, while 25% keep partial rec ... Continue reading---
CHAPTER THREE - [ Total Page(s): 3 ]Hence, the sample size for this study is 109 3.7.2 SAMPLING TECHNIQUES According to Abosede (2010) sampling techniques are approaches used in selecting samples from a study population. Given the large scale of SMEs in Abeokuta metropolis, the judgmental sampling procedure and non-random sampling technique will be used because it will not guarantee randomness, that is, elements of the population do not have the opportunity of being given an equal chance of selection. 3.7.3 SAMPLE FRAMEThe rese ... Continue reading---
CHAPTER FOUR - [ Total Page(s): 14 ]The F-Test (ANOVA)This is used to test the overall statically significant of the variables. It is meant to test the overall significance of the entire model as regards the dependent variable. It checks the joint variance of the explanatory variables. The level of significance to be used is 5%. Hence, if the probability is ≤ 0.05, the explanatory variables’ parameter estimates will be jointly statistically significant.The correlation between productivity and progressive tax is 0.71 w ... Continue reading---
CHAPTER FIVE - [ Total Page(s): 2 ]CHAPTER FIVESUMMARY, CONCLUSION AND RECCOMENDATIONS5.0 Introduction This chapter of this research work gives an overview of the entire research work. It starts with the summary of the work from the first chapter to the last chapter. The findings were looked at from the theoretical and the empirical point of view, conclusions were also made on all the content and contexts already discussed, after which recommendations were proffered as a means of setting benchmark and target for f ... Continue reading---
REFRENCES - [ Total Page(s): 2 ]REFRENCES• Aderemi, A. (2003). Small and Medium Scale Enterprises: The Nigerian Situation. [Power Point Slides] Capital Partners Limited. Retrieved from www.capitalpartnersltd.com/Small%20Medium%20Scale.ppt• Ariyo, D. (2005): Small Firms are the Backbone of the Nigerian Economy. Retrieved October 22nd, 2010, from http://www.africaeconomicanalysis.org/articles/gen/smallhtm.html.• Aryeetey, E. & Ahene, A. (2004): Changing Regulatory Environment for Small-Medium ... Continue reading---
