Background of the Study
Tax holidays, which exempt businesses from paying taxes for a specific period, are a popular incentive to encourage start-ups and entrepreneurship. In Potiskum LGA, tax holidays aim to support start-ups during their formative years, reducing financial burdens and fostering innovation.
However, the extent to which tax holidays benefit start-ups in Potiskum LGA remains uncertain. While they are intended to enhance business sustainability and growth, start-ups still face challenges such as limited access to capital, poor infrastructure, and regulatory hurdles. This study assesses the impact of tax holidays on the growth and sustainability of start-ups in Potiskum LGA.
Statement of the Problem
Despite the provision of tax holidays in Potiskum LGA, many start-ups struggle to survive and grow. This raises concerns about the effectiveness of tax holidays in addressing the challenges faced by start-ups.
Aim and Objectives of the Study
To assess the impact of tax holidays on the growth of start-ups in Potiskum LGA.
To identify challenges limiting the effectiveness of tax holidays for start-ups.
To propose strategies for maximizing the benefits of tax holidays for start-ups.
Research Questions
What is the impact of tax holidays on the growth of start-ups in Potiskum LGA?
What challenges limit the effectiveness of tax holidays for start-ups?
What strategies can maximize the benefits of tax holidays for start-ups?
Research Hypotheses
Tax holidays do not significantly impact the growth of start-ups in Potiskum LGA.
Challenges do not significantly limit the effectiveness of tax holidays for start-ups.
Proposed strategies do not significantly enhance the benefits of tax holidays for start-ups.
Significance of the Study
This study provides insights into the effectiveness of tax holidays in promoting entrepreneurship and start-up sustainability in Potiskum LGA, offering valuable recommendations for policymakers.
Scope and Limitation of the Study
The study focuses on the impact of tax holidays on start-ups in Potiskum LGA. Limitations include variability in start-up characteristics and limited access to financial data.
Definition of Terms
Tax Holidays: Temporary tax exemptions granted to businesses.
Start-ups: Newly established businesses in their early stages of operation.
Sustainability: The ability of start-ups to maintain operations and grow over time.
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