Effect of Multiple Taxation on the Performance of Small and Medium Scale Business Enterprises. (A Study of West African Ceremics Ajeokuta, Kogi State)

Abstract

This study is on the effect of multiple taxation on the performance of small and medium scale enterprises. Over the years, small and medium scale enterprises have been an avenue of job creation and the empowerment of Nigeria's citizen, providing about 50% of all jobs in Nigeria and also for local capital formation. However, the mortality rate of these small firms is very high. Among the factors responsible for these untimely close-ups are tax related issues, ranging from multiple taxation to enormous tax burdens. The study therefore examines the effect of multiple taxation on SMEs survival. The study involved a survey research design with a population of 91. The researchers derived their sample size to arrive at 74 and a self administered questionnaire was used to collect data. These data was quantitatively analyzed with simple percentages and tested the research hypothesis with ANOVA. Findings revealed that multiple taxation has negative effect on SMEs' survival and the relationship between SMEs' size and its ability to pay taxes is significant. We therefore recommends that government should come up with a uniform tax policies that will favour the development of SMEs in Nigeria and government should put into consideration the size of SMEs when setting tax policies.

The Impact of Entrepreneurial Networks on The Performance of Small Business in Nigeria

“…SMEs help in mobilization of idle funds and direct the same for utilization of the formal sector (Ademola & Michael, 2012). SMEs help the government in generating revenues through taxes (Adebisi & Gbegi, 2013). SMEs are the engine that propels the economy of nations, and they also provide opportunities for employment for unemployed people, thereby improving the standard (Garba, 2019).…”

“…Business enterprises are essential to the economic growth of Nigeria because small businesses consist of 97% of the economy and contribute 70% of the country's job opportunity (Shehu, Ibrahim, Mat, Nasiru, Popoola, Muhammad, & Kura, K, 2013). SMEs employed 82.02% of the total workforce in Nigeria (Adebisi & Gbegi, 2013;Buowari,2015). Though entrepreneurs' networks can come up in any situation, including market networks, private networks, small business networks, international networks, workplace networks, identity-based networks, trade networks, and professional networks, this study focuses on small business entrepreneurs' network.…”

Mitigating the Challenges of Small and Medium Enterprises in Nigeria

“…SMEDAN reported small businesses employed over 59 million citizens, which represent over 82% of the workforce of Nigeria's economy. Based on the study that suggested 80% of small businesses failed within the first five years: it is evident that the unemployment ravaging Nigeria's economy can be attributed mostly due to the failure of small businesses within the first five years (Adebisi, J. F., & Gbegi, D. O., 2013). The population of Nigeria is projected by the national population commission to be a little over 182 million people (National Population Commission of Nigeria, 2011).…”

“…SMEs serves as a source of poverty reduction tool to the economy (Adeyemi, K. S., & Abiodun, A. J., 2014). Small businesses uplift the welfare of the people through the provision of goods and services and also play the role of sustainable economic development in the country (Adebisi, J. F., & Gbegi, D. O., 2013). Small businesses are used in the development of the capacity of the citizens and are tools of wealth creation in the economy as well as employ both skilled and unskilled workers (Dugguh, 2015).…”

“…Small businesses are used in the development of the capacity of the citizens and are tools of wealth creation in the economy as well as employ both skilled and unskilled workers (Dugguh, 2015). Small business provides revenues to the government through taxes (Adebisi, J. F., & Gbegi, D. O., 2013). Small business mobilizes idle funds and channels same into the formal sector for utilization (Ademola, I. S., & Michael, A.…”