Tax policies and entrepreneurship sustainability in Ondo State, Nigeria

Abstract

The study examines the effect of tax policies on the survival of entrepreneurship in Ondo State, Nigeria. The study employed survey research design with the population of 18 local government areas. The study adopted multi-stage sampling techniques to select the sample size of nine local government areas that have duly registered small and medium enterprises (SMEs) under Small and Medium-Scale Enterprise Development Agency of Nigeria (SMEDAN) in Ondo State. Structured questionnaire was administered and returned by the respondents. Data collected was estimated using ordered logistic regression to test the hypotheses formulated. The study revealed that the three explanatory variables (multiple taxation, tax rates, and tax incentives) accounted for 43% of the variability of SMEs sustainability in Ondo State with a p value < 0.05, α = 0.0029. It also revealed that there was a negative significant effect between multiple taxation and sustainability of entrepreneurship; while tax rates and tax incentives have a positive relationship on entrepreneurship sustainability. Based on these findings, the study therefore recommends that for government to truncate unemployment rates that resulted to chronic poverty, banditry, kidnapping, and other social vices in the state, it is imperative that a favorable tax regime shall be provided which will encourage entrepreneurship sustainability and reduces social vises. This will not only enliven existing ones but also inspire the emergence of new ones. Friendly tax regime would engender voluntary compliance amongst the entrepreneurs in the long run with resultant tax yield.

Tax Incentives and Liquidity Performance of Quoted Industrial Goods’ Firms in Nigeria

“…The survey research design was based on primary data, and the findings revealed a positive linear relationship between reduced CIT incentives and FDI. Aribaba et al (2019) surveyed the effect of tax policy on the survival of entrepreneurial businesses in Undo State. The study employed a survey research design with a population of 18 local governments.…”

Small–medium enterprise formation and Nigerian economic growth

“…Global statistics acknowledge that small businesses are key providers of employment. For instance, in the United States of America (USA), small businesses accounted for 64% of new jobs created between 1993 and 2011 (Aribaba et al , 2019). Among the Organization for Economic Co-operation and Development (OECD) nations, small businesses account for 60–70% of jobs created annually (OECD, 2015).…”

“…Entrepreneurs who initiate start-ups are faced with a barrage of barriers including, registration, licensing, take-off capital, stiff competition, winning consumer affection and asymmetric information. While many informal SMEs abound and further undermine registered SMEs as they operate at a lower cost due to tax evasion and other levies (Aribaba et al , 2019), it is important to evaluate the formation of SMEs and economic growth in Nigeria.…”

Tingkat Kesadaran Kepatuhan Pajak: Studi terhadap Badan Usaha Milik Desa

“…Berdasarkan penelitian yang dilakukan (Aladejebi, 2018;Atawodi & Ojeka, 2012;Daniel & Faustin, 2019;Naicker & Rajaram, 2018) menunjukkan bahwa UMKM sangat penting dalam membangun perekonomian suatu negara dimana memberikan kontribusi yang besar terhadap pendapatan. Disamping itu, UMKM juga berperan penting dalam mengurangi jumlah kemiskinan dalam suatu negara melalui penciptaan lapangan kerja sehingga masyarakat tidak bergantung kepada perusahaan besar (Aribaba et al, 2019;Hamid et al, 2010;Hohenwarter & Ll, n.d.;Naicker & Rajaram, 2018). Salah satu negara berkembang yang memberikan perhatian serius terhadap perkembangan UMKM yaitu Indonesia.…”