The Effectiveness of Tax Incentives on the Growth of Nigerian Startups: A Case Study of SMEs in Enugu
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style:
- Recommended for :
- NGN 5000
Background of the Study
Small and Medium Enterprises (SMEs) are critical to Nigeria's economic development, contributing significantly to employment, innovation, and GDP growth. Tax incentives are often used as a policy tool to support SMEs by reducing their financial burdens and encouraging expansion. In Enugu, SMEs face numerous challenges, including high operational costs, limited access to credit, and inconsistent government support (Ezeh & Nwankwo, 2024).
The Nigerian government has introduced various tax incentives, such as tax holidays and reduced rates for startups, to stimulate their growth. However, the effectiveness of these incentives in driving sustainable growth remains debatable. Recent studies suggest that while some SMEs benefit from these policies, others struggle due to bureaucratic hurdles and lack of awareness (Okonkwo, 2023).
This study examines how tax incentives have influenced the growth of SMEs in Enugu, shedding light on their effectiveness and areas for improvement.
Statement of the Problem
Despite the availability of tax incentives, many SMEs in Enugu struggle to achieve significant growth. Issues such as poor implementation, lack of transparency, and limited access to these incentives undermine their effectiveness (Chijioke et al., 2023). Furthermore, the lack of awareness among SME operators about available tax benefits results in underutilization.
The high rate of business failure among startups in Enugu raises questions about the adequacy of existing tax policies. Without addressing these challenges, the potential of SMEs to drive economic growth and reduce unemployment in the region remains untapped.
Objectives of the Study
- To evaluate the effectiveness of tax incentives in promoting the growth of SMEs in Enugu.
- To identify the challenges SMEs face in accessing and utilizing tax incentives.
- To recommend strategies for improving the implementation of tax incentives for SMEs.
Research Questions
- How effective are tax incentives in promoting the growth of SMEs in Enugu?
- What challenges do SMEs face in accessing and utilizing tax incentives?
- What strategies can improve the implementation of tax incentives for SMEs in Enugu?
Research Hypotheses
- Tax incentives significantly promote the growth of SMEs in Enugu.
- Challenges in accessing tax incentives hinder their effectiveness for SMEs in Enugu.
- Improved implementation of tax incentives can enhance SME growth in Enugu.
Scope and Limitations of the Study
This study focuses on SMEs in Enugu, analyzing the impact of tax incentives on their growth from 2023 to 2025. Limitations include potential bias in self-reported data from SMEs and challenges in obtaining official records on tax policies.
Definitions of Terms
- Tax Incentives: Financial benefits offered by the government to reduce the tax burden on businesses.
- Small and Medium Enterprises (SMEs): Businesses with a limited scale of operations, typically defined by revenue and employee size.
- Startup Growth: The expansion of new businesses in terms of revenue, market share, and operational capacity.
Related Project Materials
Design and Implementation of a Quantum-Based AI System for Crime Mapping in Nigeria Police Force, Abuja
Background of the Study
Crime mapping is an essential tool for modern law enforcement, enabling spatial analysis of crimina...
A Comparative Study of Investment Strategies in Microfinance and Commercial Banks: A Case of LAPO Microfinance Bank and Zenith Bank Plc, Yobe State
Background of the Study
Investment strategies vary between microfinance and commercial banks due to dif...
The Impact of Bush Burning on Soil Erosion and Agricultural Output in Niger State
Background of the Study
Bush burning is a common agricultural practice in many parts of Nigeria, including Niger State, as...
An appraisal of government efforts in improving potable water supply in Calabar Municipal Local Government Area, Cross River State
Background of the Study:
Access to potable water is a fundamental human right and a key driver of public health and socio-e...
An Examination of Market Competitiveness in Business Banking: A Case Study of Citibank Nigeria, Lagos
Background of the Study:
Market competitiveness in business banking is driven by the ability of banks to offer innovative products, compe...
Optimization of AI Algorithms for Identifying Novel Antiviral Drug Compounds: A Case Study of Abubakar Tafawa Balewa University, Bauchi State
Background of the Study
The search for new antiviral drugs has become more critical due to the increasing threat posed by e...
An examination of corruption and its impact on access to justice in Lafia, Nasarawa State.
Background of the Study:
Corruption within the justice system undermines public trust in institutions and often leads to th...
THE PROBLEM AND PROSSPECTS OF COCOYAM PRODUCTION
ABSTRACT
It is a common practice in Nigeria and other West Africa Countries especially in area lying within the ra...
The Role of Development Communication in Promoting Infrastructure Development in Wamba Local Government Area, Nasarawa State
Background of the Study
Infrastructure development serves as a catalyst for socio-economic growth, fostering access to e...
An Assessment of Financial Statement Fraud in Nigerian-Listed Companies: A Study of Transcorp Plc
Background of the Study
Financial statement fraud involves the deliberate misrepresentation or manipulation of a company...
