IMPACT OF TAXATION ON SMALL SCALE BUSINESS IN A DEVELOPING ECONOMY. (A CASE STUDY OF EKENE DILI CHUKWU NIGERIA LIMITED ENUGU)
This is a research work on the impact of taxation on small-scale business in a developing economy. A case study of Ekene Dili Chukwu Limited Enugu . it is aimed at ascertaining the extent to which Ekene Chukwu taxation. The area of study was Ekene Dili Chukwu Limited Enugu. This study is divided into five chapters. Chapter one gives the general introduction. Chapter two reports our review of related literature to the theme of this research. Chapter three describes the actual process and method of their research, the research used. Chapter four gives the details of test statistical formular in test of the Null hypothesis. Finally ijn chapter five, the researcher presented recommendation as well as the suggestion of further research.
TABLE OF CONTENTS
Title Page i
Approval Page ii
Table of contents vi
CHAPTER ONE: INTRODUCTION
1.1 Background of the study 1
1.2 Statement of the problem 4
1.3 Objective of the study 5
1.4 Hypothesis 6
1.5 Research question 7
1.6 Significance of the study 8
1.7 Scope of the study 9
1.8 Limitation of the study 9
1.9 Definitionof terms 11
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 The concept of taxation 14
2.2 Classification of taxes 16
2.3 Classification of small Business 18
2.4 Bank lending and SMES Development in Nigeria 19
2.5 Main Sources of Financing SMES in Nigeria 21
CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY
1.1 Research design 27
1.2 Area of the study 27
1.3 Population of the study 27
1.4 Sampling method 28
1.5 Research instrumentation 29
1.6 Validity and reliability of research instruments 29
1.7 Sources of data 30
1.8 Method of investigation 31
CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA
4.1 presentation and analysis of Result 32
4.2 Test of hypothesis 42
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of findings 51
5.2 Conclusion 53
5.3 Recommendation 55
CHAPTER ONE: INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Nigeria is a growing economy and following this ideology, the government can’t meet the need of every citizen and parastatal because of our population and inadequacy that came with the war, many lost properties business family etc. and the government lost stability and that price we are still paying till date.
Following this challenge various individuals decided they must move on with life and how did they achieve that, they had to trade and this trade gradually matured into small business and this small business gradually maintained their pace of transaction which helped them to exist and still in existence. Small business development is the way forward for any economy that want to grow and affect the citizens. This small business help to reduce the rate of unemployment in the society and at the long run the burden of employment by the government is reduced. It is becoming evident that small business which has seen neglected could affect the economy more than the industries, because these industries now make use of machines from point of start to finish of product, making man power employment not two important. The neglect given to small business has not been encouraging and following this neglect most small business cannot and will not be able to expand and grow as expected. The present day economy has created an unpleasant atmosphere for business that are growing because only the extra might rich individual can participate in the kind of business even a poor small business owner cannot be part of it.
Gratitude to this present day government and it’s team and expert and professionals at last something good is coming out, consideration finally is being given to small business following the understanding that small businesses are capable of pulling Nigeria out of the present economic situation locally materials and locally, it will increase the performance and growth of small business owner. The research work is intended to expose and examine the impact of taxation on small business. In a developed economy like Nigeria. Research and Investigation has shown that to maintain, increase and employ for services that will be beneficiary to the citizens. The general thing about taxation which the average small business owner those not known are as follows:
Maintenance of balance of payment.
Maintain of analysis of payment for good brought.
It helps to modify the pattern of investment.
Restraining the transfer of material resources from consumption to investment.
Taxation imposed on production services will in turn be the benefit of small business person who in turn would want to increase their profit.
1.2 STATEMENT OF THE PROBLEM
Taxation existence or adoption generally increased the rate of unemployment, following: Thus fact that they can not afford to pay for more hands in there small business transaction they engage in thereby thing proper to make o with the little they have and what they can make out of it, by way of profit.
Therefore there has being unanswered and unattended issue on questions relating to taxation and it’s effect on small business. This questions generally are understanding gathered in respect to this project work and this bothering questions are as follows.
a. Due to high level of payment involve and charged as tax company, i0ndividuals and small business shy and avoid payment of tax.
b. Majority of business (small business) do no declare the company financial statement to the public.
c. Many small business refuse to expand because of the attraction of tax officers.;
d. The benefit inherent in the payment of tax are not given to the small business holder.
1.3 OBJECTIVE OF THE STUDY
1. To find out the effect of taxation and individuals to investment through tax on small scale business in a developing economic.
2. To investigate the effect of taxation o-n the growth of investment in a developing economy.
3. To find out if the effect of taxation leads to unemployment in economy.
4. To explore the various measure introduced to help boost production using local materials.
The researcher formulated the following hypothesis:
Ho: Taxation does not have any effect on small scale business in a developing economy.
H1: Taxation has significant effect on small scale business in a developing economy.
Ho: Taxation do not have any effect on the growth of investment in a developing economy.
H1: Taxation has significant effect on the growth of investment in a developing economy.
Ho: Taxation does lead to unemployment in a developing economy.
H1: Taxation leads to unemployment in a developing economy.
Ho: The various measures introduced to help boost production using local materials does not have significant impact on developing economy.
H1: The various measures introduced to help boost production using local materials has significant impact on developing economy.
1.5 RESEARCH QUESTIONS
1. Does taxation have any effect on small scale business in a developing economy?
2. What are the effects of taxation on the growth of investment in a developing economy?
3. Does taxation lead to unemployment in a developing economy?
4. Are there measures introduced to help enhance e productively in small scale business.
1.6 SIGNIFICANCE OF THE STUDY
It is important to point out that on completion of this work by the researcher, it would be of immense significance to the following:
RESEARCHERS: Other researchers on the same or similar topic would find this work helpful as it will form a base of review of related literature and also a stepping-shine for future researchers.
ECONOMY: This work will help to improve the national output and thereby national income. Increases the number of small scale industries in Nigeria through redection of tax payment as well as the over all success of companies, which will be achieved by encouraging our local contents and products to be specific as prescribed by the researcher.
Small business operators: this study will be of immense help to the small business operators in our countries as it help them to know more on the relevance of taxation in our society.
The policy makers: This study on Impact of taxation on small scale business in a developing economy will be of importance to the policy makers as it will serve as an eye opener to them in terms of making policies that will encourage the small business orgainsations.
1.7 SCOPE OF THE STUDY
This project work focuses on Impact of taxation on small scale business in a developing economy with particular reference to Ekene Dili Chukwu Nigeria Limited Enugu.