Multiple Taxation and Growth of Business Enterprises in Ekiti State

Abstract

Multiple taxation has bedeviled the survival of many businesses in Nigeria. This is due to the fact that profits meant to be reinvested into businesses for expansion have been collected by tax authorities in multiple folds as taxes. This study examined the effect of multiple taxation on the growth of business enterprises in Ekiti state. Specifically, the study examined the effect of multiple taxation on the sustainability, survival and market shares of SMEs in Ekiti State.  Multiple taxation being the independent variable was examined holistically while the growth of SMEs as the outcome variable was captured with sustainability, survival and market shares of SMEs. Considering the need to obtain information on multiple taxation practices in Ekiti State, this study adopted descriptive survey design and covered all the registered 928 SMEs in the state as reported by Ministry of Commerce and Trade, Ekiti state (2022). Using Taro Yamane model established in 1967, the sampled size covered 270 registered SMES in the state using multistate sampling technique. Data were gathered via the administered closed ended questionnaires to the targeted respondents. To analyze these datasets, simple linear regression analysis methods was adopted.  From the analysis carried out, multiple taxation has a negative significant effect on sales volume of SMEs in Ekiti state with the values of -0.833 and 0.001<0.05. Also, a negative in significant effect exist between multiple taxation and SMEs  survival in Ekiti state to the tune of -0.612(p=0.067>0.05) while multiple taxation has a negative significant effect on market share of SMEs in Ekiti State with the coefficient and probability values of -0.433 and 0.046<0.05. It was established form the findings of this study that multiple taxation statistically endangers the growth of SMEs in Ekiti State, Nigeria.

Keywords: Taxation, Multiple Taxation, Growth, Sustainability, Survival, Market Share.

DOI: 10.7176/EJBM/15-12-05

Publication date:June 30^th 2023