A three‐sector comparative study of the impact of taxation on small and medium enterprises

2007 ◽  
Vol 15 (1) ◽  
pp. 115-135 ◽  
Author(s):  
J.M.P. Venter ◽  
B. de Clercq
Keyword(s):  
Small Businesses ◽  
Small And Medium Enterprises ◽  
Regulatory Environment ◽  
National Strategy ◽  
Business Services ◽  
Business Decisions ◽  
Services Sector ◽  
Medium Enterprises ◽  
The Impact ◽  
Thabo Mbeki

In his 2006 State of the Nation Address, President Thabo Mbeki indicated that the regulatory environment for small businesses would be improved, as this sector plays an important role in the national strategy for accelerated and shared growth. The aim of this study is to determine whether the size of an enterprise and the sector in which the enterprise operates has an impact on how the enterprise’s tax responsibilities are administered and managed. A survey was conducted amongst small and medium enterprises in the manufacturing, retail and business services sectors in Gauteng. The study focused on Gauteng because the majority of small, medium and microenterprises (SMMEs) are located in this province. The study found that most small and medium enterprises (SMEs) in the business services sector outsource their tax responsibilities because they lack the time needed to manage these functions. It was also found that the size and type of organisation affects the role taxation inputs play in business decisions. The SMEs included in the survey preferred a reduction in interest and penalties charged as a taxation relief measure.

scholarly journals Financing MSMEs (Micro Small and Medium Enterprises) in Nigeria: Implications of Transaction Costs

2018 ◽  
Author(s):  
Oluseye Ajuwon ◽  
Sylvanus Ikhide ◽  
Joseph Akotey
Keyword(s):  
Financial Institutions ◽  
Small Businesses ◽  
Small And Medium Enterprises ◽  
Survey Method ◽  
Access To Finance ◽  
Access To Credit ◽  
Transactions Cost ◽  
Medium Enterprises ◽  
The Impact ◽  
Depth Interviews

This study investigated the roles of transactions cost in MSMEs access to finance. This was done by investigating the impact of transactions cost on access to credit from both MSMEs and financial institutions (commercial banks and microfinance banks). From the MSMEs’ side, borrowing experience, decision lag, firm size and borrowers’ distance to the loan office were investigated. On the financial institution’s side, the costs of information gathering, loan administration, monitoring and loan enforcement were investigated. We used the questionnaire survey method, in-depth interviews and case studies, as well as the annual financial statements of the banks. We identified interest rate and collateral value as constraints to access to finance for MSMEs. We also found financial institutions’ attitude to MSMEs access to credit was not friendly. Financial institutions need to do more to bring down transaction cost of lending. This hopefully can be achieved by investing more in agent banking which would lower operating costs, as well as spreading risk, and ultimately increase credit intermediation to small businesses.

Research on fraud: an overview from small medium enterprises (SMEs)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Siti Faizah Zainal ◽  
Hafiza Aishah Hashim ◽  
Akmalia M. Ariff ◽  
Zalailah Salleh
Keyword(s):  
Internal Control ◽  
Small Businesses ◽  
Small And Medium Enterprises ◽  
Future Research ◽  
Control Mechanisms ◽  
Content Type ◽  
Small Medium Enterprises ◽  
Medium Enterprises ◽  
The Cost ◽  
The Impact

Purpose The purpose of this paper is to present a review of literature on fraud with a specific focus on small and medium enterprises (SMEs). Specifically, it aims to provide further knowledge on recent developments in fraud research and offers suggestions for future research. Design/Methodology/Approach This paper systematically reviews the fraud literature, by organising them into five sections; definition, elements, theories, factors and prevention mechanisms. Findings The most common factors of fraud in SMEs are the low morale among employees and weak internal control within the organisations. Nonetheless, research on fraud involving SMEs is limited, albeit the importance of SMEs to the economy. Research Limitations/Implications This paper encapsulates the importance of research on fraud in SMEs by offering directions for future research. Among others, future studies might indicate the link between corruption, financing sources and innovation of SMEs, especially within the context of an emerging country and reveal the cost of the criminal justice system to identify more accurately the cost of fraud in SMEs. Originality/Value The focus on fraud in SMEs and the recent period of study offer a foundation for future research directed at the factors of fraud and the prevention mechanisms. Future research can further explore and broaden the literature on fraud involving SMEs through research that focuses on the impact of fraud and the types of control mechanisms that suit the SMEs. Greater understanding of fraud in the SMEs allows in identifying the best approach to prevent and detect fraud for small businesses with limited resources.

Information Security in Small Businesses

2008 ◽  
pp. 2791-2816
Author(s):  
Kishore Singh
Keyword(s):  
Information Security ◽  
Small Businesses ◽  
Security Policy ◽  
Small And Medium Enterprises ◽  
Medium Enterprises ◽  
The Impact

This chapter discusses the impact of security in small and medium enterprises. It views the development of a security policy in serious light and come up with some recommendations on how this can be handled.

scholarly journals THE IMPACT ASSESMENT OF THE MICRO FINANCE TO FINANCIAL INCLUSION AND BISUNESS GROWTH: A STUDY OF THE MICRO, SMALL AND MEDIUM ENTERPRISES IN IGEMBE SOUTH (KENYA)

2018 ◽  
Vol 3 (1) ◽  
pp. 1
Author(s):  
Martin Guantai Kanake ◽  
Dr. R. Mahesh
Keyword(s):  
Small Businesses ◽  
Default Risk ◽  
Small And Medium Enterprises ◽  
Distribution Channel ◽  
Financial Inclusion ◽  
Microfinance Institutions ◽  
Development Fund ◽  
The Government ◽  
Medium Enterprises ◽  
The Impact

Purpose: The purpose of this study was to assess the impact of microfinance on financial inclusion and business growth in Igembe South District Kenya.Methodology: Descriptive research was used in discovering the research objectives. The research targeted the micro, small and medium sized businesses operating in Maua town (Igembe south District), 2181 of which were registered and licensed. A sample of 280 businesses (12.84% of the population) participated in the study.Results: This study revealed that microfinance institutions played a major role in improving financial inclusion among the small business owners who previous research has shown that they have been traditionally excluded from the formal banking systems. 78% of the respondents had access to the micro finance services while 60% had active microcredit in the preceding 12 months. It was clear that the microfinance institutions were cultivating the culture of saving among the micro entrepreneurs. However, most of the new businesses specifically those less than one year of age minimally benefitted from the micro finance services. It was also noted that default risk among the small businesses remains to be a challenge that micro credit lenders have to overcome for continued services provision. Working capital requirement was the leading reason for borrowing from micro finance institutions by the businesses.Unique contribution to theory, practice and policy: The study found that there was a good complementation between the existing micro finance institutions and the public entrepreneurial programs initiated by the government of Kenya such as Youth Entrepreneurs Development Fund, Women Enterprise Fund, Uwezo Fund and other County governments initiatives. The study recommended that the microfinance institutions should also be included in the distribution channel of these public funds for stronger linkage with the target groups. The MFIs should also utilize Credit Reference Bureau services to reduce the problem of default.

scholarly journals Accounting in a single information space of the enterprise

2021 ◽  
pp. 158-165
Author(s):  
Svitlana Skrypnyk ◽  
Inesa Shepel ◽  
Hanna Holovchak
Keyword(s):  
Decision Making ◽  
Information System ◽  
Financial Reporting ◽  
Small Businesses ◽  
Small And Medium Enterprises ◽  
Accounting Information ◽  
Information Support ◽  
Accounting Systems ◽  
Medium Enterprises ◽  
The Impact

Purpose. The aim of the article is to study of accounting as an information system of enterprises for effective management decisions. Methodology of research. The study used general and special methods of cognition, in particular: methods of theoretical generalization and comparative analysis – for the analysis of relevant scientific literature; system approach, methods of analysis and synthesis – to substantiate the methodology of research of the accounting information system; generalization – in the study of current rules and regulations on the regulation of accounting, methods of reflecting its results and features of accounting processes in the enterprise; abstract and logical – in the generalization of theoretical positions and the formation of conclusions and proposals. Findings. The importance of disclosing the development and knowledge of accounting information and the impact it has on decision-making in small and medium-sized enterprises, as well as micro-enterprises, has been identified. It is established that the general economic development of the country requires adequate information, reliable and important for economic decisions from investors, managers, state administrators, etc. It is concluded that high-quality and reliable financial information is a key element in the decision-making process, in particular the availability of such information is of particular importance for business management and is generally in the public interest. Originality. The main factors of the influence of information support on the accounting of small enterprises are substantiated and revealed. The peculiarities of the practice of accounting systems that can be considered appropriate for small and medium enterprises in accordance with their specific circumstances and needs. It is suggested that an important factor influencing the construction of accounting in small business is the diversity of accounting systems. Practical value. The obtained results of the research allow to deepen the theoretical foundations and develop practical recommendations for improving the information support of accounting in small businesses, as well as to apply them for further research. Key words: small and medium enterprises, accounting, information, information system, financial reporting, decision making.

scholarly journals Impact of small and medium enterprises in generating new jobs in case of Kosovo

2021 ◽  
Vol 39 (3) ◽  
Author(s):  
Rrezarta Gashi ◽  
Hana Gashi Ahmeti ◽  
Besime Ziberi
Keyword(s):  
Small And Medium Enterprises ◽  
Secondary Data ◽  
Research Paper ◽  
Special Focus ◽  
Positive Correlation ◽  
Services Sector ◽  
Time Period ◽  
Medium Enterprises ◽  
The Impact ◽  
New Jobs

This study is an original study and adds to the research debate on the impact of small and medium enterprises in generating new jobs, with a special focus on the industry and services sector, as in Kosovo for these sectors still do not there has been special research. The objective of this research paper is presents the impacts of small and medium enterprises have in generating new jobs. To achieve the stated objective and to prove the hypotheses in this research, the OLS regression model has been used whereas the data processing has been done through Statistical Package for Social Sciences (SPSS). This research paper has been conducted by using secondary data collected by the World Bank and Kosovo Agency of Statistics. The data are presented for the time period 2012-2018. Results in this research paper from this model show that the industry and services sector affects generating new jobs in Kosovo, therefore there is a positive correlation between the presented variables. Also we can notice a positive correlation between the GDP and employment rate. The results presented in this research paper can be used as a guide for new businesses in the services and industry sector and their impact on the generation of new jobs in Kosovo, as well as efforts to further improve performance in these sectors.

Implementation of Inclusive Finance in Empowering Micro, Small and Medium Enterprises (UMKM) at Micro Waqf Banks

2021 ◽  
Vol 5 (1) ◽  
pp. 82
Author(s):  
Rahma Jaziyatul Chikmiyah
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Qualitative Method ◽  
Small And Medium Enterprises ◽  
Financial Inclusion ◽  
National Strategy ◽  
Classic Problem ◽  
The Government ◽  
Medium Enterprises ◽  
The Impact

<p><em>This study aimed to analyze the impact of the implementation of financial inclusion at Al-Fithrah Micro Waqf Bank regarding the empowerment of Empowering Micro, Small and Medium Enterprises (MSME). Even though MSME sectors have become a central foundation for the economy, the capital limitation is still considered a classic problem. It influences the government to release National Strategy Financial Inclusion to provide financial services that all levels of society can access. The indicators inclusive financial consists of access, usage and quality to realize empowerment through financing and assistance. This research used a descriptive qualitative method, and data were collected through interviews, observations, and documentation. The results showed that the financial inclusion component had been implemented but still has many potentials to be maximized. The components of access and usage have been appropriately implemented in terms of physical aspects and prices that are easily accessible to customers. These two components have an impact on increasing customer Islamic financial literacy. In the quality component, product variations are expected to fulfill the different business needs of customers. Meanwhile, financing has not significantly impacted fulfilling the welfare component’s capital needs  because the nominal value is too small. Furthermore, business assistance has a more significant impact on improving the business and spiritual aspects</em><em> of clients</em><em>.</em></p><p align="left"> </p><p>Penelitian ini bertujuan untuk menganalisis dampak penerapan keuangan inklusif pada Bank Wakaf Mikro Al-Fithrah terhadap pemberdayaan UMKM di sekitarnya. Meskipun sektor UMKM telah menjadi fondasi yang cukup sentral bagi perekonomian, keterbatasan permodalan masih menjadi masalah klasik UMKM. Hal ini mendorong pemerintah untuk mengeluarkan Strategi Nasional Keuangan Inklusif yang bertujuan untuk memberikan layanan keuangan yang dapat diakses seluruh lapisan masyarakat. Indikator keuangan inklusif yang terdiri dari akses, penggunaan dan kualitas diterapkan untuk mewujudkan pemberdayaan UMKM melalui pembiayaan dan pendampingan. Penelitian ini menggunakan metode deskriptif kualitatif melalui pengumpulan data wawancara, observasi, dan dokumentasi. Hasil penelitian menunjukkan bahwa komponen keuangan inklusif telah diimplementasikan namun masih berpotensi untuk dimaksimalkan. Komponen akses dan penggunaan sudah terlaksana dengan baik dilihat dari segi fisik dan harga yang mudah dijangkau nasabah. Kedua komponen tersebut berdampak pada peningkatan literasi keuangan syariah nasabah. Pada komponen kualitas, variasi produk diharapkan dapat memenuhi kebutuhan modal nasabah yang berbeda. Sedangkan untuk komponen kesejahteraan, pembiayaan belum memberikan pengaruh signifikan untuk memenuhi kebutuhan permodalan karena nilai nominal yang terlalu kecil. Selain itu, program pendampingan usaha (HALMI) memiliki dampak yang lebih signifikan terhadap peningkatan usaha dan spiritual pelanggan.</p>

PENGARUH INFLASI TERHADAP KESTABILAN DAN EKSISTENSI USAHA EKONOMI MIKRO

2021 ◽  
Vol 3 (1) ◽  
pp. 53-74
Author(s):  
Erik Bisri Alamsyah ◽  
Kushartono Kushartono ◽  
Yoan Catur Arinsa
Keyword(s):  
Economic Growth ◽  
Small Businesses ◽  
Small And Medium Enterprises ◽  
National Development ◽  
Cultural Economic ◽  
National Welfare ◽  
The Government ◽  
Business Entities ◽  
Medium Enterprises ◽  
The Impact

Indonesia, as a developing country, realizes the importance of economic development to create national welfare. This national development covers various aspects of life such as the political, social, cultural, economic and defense and security sectors aimed at meeting the needs of all Indonesian people, whose main objective is towards a just and prosperous Indonesian society.Economic growth is a measure for the success of a country's development, especially in the economic field. A country has an economic growth that has increased continuously every year will promote development in that country. In macroeconomics, the overall economic condition of a country is explained in relation to economic growth. The success of a country's development lies in its economic growth. Therefore, the ups and downs of the economy will certainly affect several sectors.In the economy of a country or a region, in fact there are various sectors that show the level of economic growth, namely the formal and informal sectors. In the informal sector, generally small businesses with limited capital, scope and development and received very little official protection from the government. There are also many informal sectors that can be appointed as an activity or job to generate income in a community, one of which is establishing their own business or by establishing micro, small and medium enterprises (MSMEs). Micro, Small and Medium Enterprises are the business groups that have the largest number. The micro, small and medium enterprises are regulated based on Law Number 20 of 2008 concerning UMKM Article 1 number 1 what is meant by Micro Enterprises are productive businesses owned by individuals or individuals and / or individual business entities.2 Micro Economic Businesses are businesses that have the potential to be affected by the impact of there is an economic phenomenon, namely inflation.Keywords: UMKM; National development; National Economy.

Strategic Revolving Fund Practices and Performance of Micro and Small Businesses in Wajir County, Kenya

2019 ◽  
Vol 3 (V) ◽  
pp. 123-146
Author(s):  
Sharun Iman Dahir ◽  
Shadrack Bett
Keyword(s):  
Leadership Development ◽  
Knowledge Transfer ◽  
Small Businesses ◽  
Small And Medium Enterprises ◽  
Strategic Leadership ◽  
County Government ◽  
Stakeholder Support ◽  
Strategic Training ◽  
Medium Enterprises ◽  
The Impact

Even though the vision 2030 framework recognizes the micro, small and medium enterprises’ sector as a key driver to achievement of middle income status in Kenya, their contribution to the achievement of this goal especially within Wajir County is dismal. In Wajir County, the 2016 Micro, Small and Medium Enterprises report showed that many of the businesses in the county were stuck at the micro level where only 14 businesses had graduated to medium scaled businesses. It was also among the counties with the lowest change in number of employees when comparing the inception period and the survey period recording a change of 1.4%. The report showed that besides lack of adequate operating funds, limited knowledge and information and poor strategic management skills were the major constraints to the performance of these enterprises. Hence, the county government of Wajir had stepped in to address this challenge by setting up the Wajir County Revolving Fund whose main mandate was to promote the development in Wajir County by providing different kinds of support to these businesses. Nevertheless, studies assessing the impact of the strategic activities/practices under the fund on the performance of the businesses in order to evaluate the effectiveness of the fund were conspicuously missing. This study therefore sought to investigate the effect of the strategic revolving fund practices on the performance of the micro and small businesses in Wajir County. The specific focus was to establish the effect of stakeholder support, strategic training, knowledge transfer and strategic leadership development on the performance of micro and small retail enterprises in Wajir County. The study was guided by the resource based view theory, the theory of constraints, the social capital or social network theory and the balanced scorecard model. The study applied a descriptive survey research design. The study targeted the 855 beneficiaries (business groups and individual businesses) who had benefitted from the fund as at 2018. The study applied stratified random sampling in selecting the sample. The study used semi-structured questionnaires which were administered to the chairpersons for the group businesses and the owners for individual businesses. In analyzing the information from the open ended questions, themes emerging from the responses given were coded and simple summaries generated. The quantitative data analysis was aided by the use of the Statistical Package for Social Sciences version 20. Both descriptive and inferential analyses were carried out. A multiple linear regression model was used to show the relationship between strategic revolving fund practices and the performance of micro and small retail businesses in Wajir County. The study found that stakeholder support, strategic training, knowledge transfer and strategic leadership development had positive and significant effect on the performance of the micro and small businesses. The study noted that knowledge transfer had the largest effect on the performance of these businesses. The study concluded that the county revolving fund through various strategic practices/activities under taken under the fund had transformed the performance of micro and small businesses in Wajir County. Several recommendations were made among them the Wajir County government through the department of trade and cooperatives should identify, form networks and present proposals to various parties in diverse industries/sectors whose support can tremendously transform the county revolving fund initiative. The study also recommends that this department should develop a concrete strategy for planning how stakeholders attached to the fund and beneficiary businesses interact and communicate and hold regular consultative meeting with these parties to ensure that they are actively engaged in the activities of the beneficiaries. The study also recommended that training teams attached to the fund should ensure that the concepts of business strategy and other strategic business concepts are deeply enshrined in the training sessions offered to beneficiary businesses.

Evaluating the Impact of Progressive Beer Duty on Small Breweries: A Case Study of Tax Breaks to Promote Smes

2010 ◽  
Vol 28 (2) ◽  
pp. 225-240 ◽  
Author(s):  
John Wyld ◽  
Geoff Pugh ◽  
David Tyrrall
Keyword(s):  
Economic Theory ◽  
Small Businesses ◽  
Small And Medium Enterprises ◽  
Policy Debate ◽  
The United Kingdom ◽  
Tax Relief ◽  
The Uk ◽  
Medium Enterprises ◽  
The Impact

We examine whether the 2002 introduction of progressive beer duty (PBD) in the UK has had its desired or predicted effects. The purpose of the new tax relief was, in the words of the then Chancellor of the Exchequer, to “encourage one group of small businesses: the nation's small brewers”. A dataset has been created of all small breweries in the United Kingdom from 1988 to 2008, recording the dates of their creation, progression, and, where relevant, extinction. We find no evidence of a change in survivorship consequent upon the introduction of PBD. However, there is some evidence of an increase in the rate of formation of small breweries. These findings are consistent with predictions from standard economic theory and thus may be relevant to wider policy debate on the use of targeted tax breaks to support small and medium enterprises.

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