An assessment of the impact of fiscal policies on the growth of small and medium enterprises in Tanzania: a case study of SME's in Mazombe division-Iringa region Tanzania
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Date
2009-10
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Kampala International University, College of Economics and Management
Abstract
In many developing countries, there is growing recognition that SME's have a very vital role to play in economic development. SME's create employment, help achieve equitable income distribution, alleviate poverty, build up local technological base, promote participation of vulnerable groups particularly women in the development process, provide training ground for entrepreneurial and managerial skills and opportunities for use of own capital resources as well as act as ancillaries to large-scale enterprises. However, the development of SME's largely depends on the policies in place and in particular the tax structure of a given country. The aim of this study was to determine the impact of fiscal policy on the growth of SME's in Tanzania. The study was based in Mazombe Division and covered a sample size of 50 SME's. The methodology used to select the sample size was stratified random sampling. Primary data was collected using administered questionnaires. The data was analyzed using SPSS. The results from the study showed that fiscal policies were not in the least supportive to the growth of SME's. Further, the study also revealed that most SME owners did not register themselves as legal entities as a way of evading tax and other mandatory payments. In addition, the study showed that TRA officials who collected company tax from SME's where not honest enough and capitalized on the ignorance of SME's owners. The study concluded that in order for SME's to grow, there is need for various stakeholders to put up their effo11s into bringing the wheels of SMEs into full stroke.
Description
This Dissertation is submitted in Partial Fulfillment of the Award of a Bachelor of Business Administration in Accounting for Kampala International University
Keywords
Fiscal policies, Growth, Tanzania, Small and medium enterprises, Mazombe division-Iringa region Tanzania