TAX RELEIFS AND THE GROWTH OF SMES IN SOME SELECTED SMALL AND MEDIUM SCALE ENTERPRISES IN LAGOS STATE

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TABLE OF CONTENTS

TITLE PAGE……………………………………………………………………………………………………………. I

DECLARATION……………………………………………………………………………………………………….. II

CERTIFICATION…………………………………………………………………………………………………….. III

DEDICATION………………………………………………………………………………………………………….. IV

ACKNOWLEDGEMENT…………………………………………………………………………………………… V

TABLE OF CONTENT……………………………………………………………………………………………….. VI

LIST OF TABLES………………………………………………………………………………………………………. XI

ABSTRACT………………………………………………………………………………………………………………. XII

CHAPTER ONE

  1. BACKGROUND TO STUDY……………………………………………………………………………………. 1
    1. STATEMENT OF PROBLEM…………………………………………………………………………………… 4
    1. OBJECTIVES OF THE STUDY………………………………………………………………………………… 5
    1. RESEARCH QUESTION…………………………………………………………………………………………. 5
    1. HYPOTHESES OF THE STUDY……………………………………………………………………………….. 6
    1. SIGNIFICANCE OF THE STUDY…………………………………………………………………………….. 6
    1. SCOPE OF THE STUDY…………………………………………………………………………………………… 6
    1. LIMITATIONS OF THE STUDY……………………………………………………………………………….. 7
    1. OPERATIONAL DEFINITION…………………………………………………………………………………. 7

CHAPTER TWO

CHAPTER THREE

3.7 VALIDATION RESEARCHINSTRUMENT……………………………………………………………… 34

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.3 SOCIO-ECONOMIC CHARACTERISTICS OF THE ESPONDENT………………………….. 36

4.4. TEST OF HYPOTHESIS………………………………………………………………………………………… 50

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

  • INTRODUCTION………………………………………………………………………………………………….. 53
    • SUMMARY OF FINDINGS……………………………………………………………………………………. 53
    • CONCLUSION……………………………………………………………………………………………………… 54
    • RECOMMENDATION………………………………………………………………………………………….. 55

REFERENCES…………………………………………………………………………………………………………….. 56

APPENDIX…………………………………………………………………………………………………………………. 60

LIST OF TABLE

Table 4.2. ANALYSISPRESENTATION……………………………………………………………………….. 35

Table 4.3.1. Age of the respondent…………………………………………………………………………………. 36

Table 4.3.2. Sex of the respondent………………………………………………………………………………….. 36

Table 4.3.3. Marital status of the respondent……………………………………………………………………. 37

Table 4.3.4. Religion…………………………………………………………………………………………………….. 38

Table 4.3.5. Educational background of respondent………………………………………………………….. 39

Table 4.3.6. Department…………………………………………………………………………………………………. 39

Table4.3.7. Numbers of years used in the company…………………………………………………………… 40

Table4.3.8 Lagos state government grants tax eliefs……………………………………………………………. 40

Table4.3.9. SMES are pivotal to Lagos state growth………………………………………………………….. 41

Table 4.3.10. Tax reliefs improves SMES performance…………………………………………………….. 41

Table4.3.11. Lagos state government introduces incessant new taxes………………………………… 42

Table 4.3.12. Change in Lagos state government policy on tax affects SMES…………………….. 42

Table 4.3.13 SMES are guided on how to meet their tax obligations……………………………………. 43

Table4.3.14. Sanctions are imposed for failure to register with tax authorities……………………… 43

Table4.3.15 In business Double taxation affects SMES growth……………………………………………… 44

Table 4.3.16 Tax reliefs can be utilized by the Lagos state government to encourage growth and expansion of SMES……………………………………………………………………………………………………….. 44

Table 4.3.17 A tax relief plays a vital role in ensuring that SMES thrive……………………………… 45

Table 4.3.18 Tax reliefs have effects on small and medium enterprises in Lagos state………….. 45

Table 4.3.19 Tax holiday has been chosen as a common tax reliefs by Lagos State………………….. 46

Table 4.3.20 SMEs provide jobs and income for different individuals in different sectors of Lagos States and so should be empowered…………………………………………………………………………………………… 46

Table 4.3.21 SMEs are often known to be the engine for growth and development in Lagos…47 Table 4.3.22 there is relationship between tax reliefs and SMEs growth in Lagos State…….. 47

Table 4.3.23 SMEs are often known to be the engine for growth and development in Lagos. 48

Table 4.3.24 Inadequate working capital affect SMEs tax obligations………………………………. 48

Table 4.3.25 Change in market in SMEs is a constrain in paying their taxes……………………… 49

Table 4.3.26 Assisting SMEs in Lagos state is crucial because of the inherent role they play in the economic growth and development………………………………………………………………………………. 49

Table 4.3.27 SMEs contribute to improved living standards, bring about substantial local capital formation and achieve high level of productivity and capability……………………………………….. 49

Table 4.4.2 ANALYIS USING REGRESSION…………………………………………………………. 50-51

Table 4.4.2 ANALYSIS USING CORRELATION………………………………………………………… 52

ABSTRACT

The importance of Small and Medium Scale Enterprises (SMEs) in Lagos state in recent years cannot be underrated especially with regard to creation of employment, innovation, uplifting the people‟s  standard  of  living  and  financial  contribution  to  the  growth  of  the  countries‟  Gross Domestic Product. This sector’s growth is hindered by the challenges of lack of financial resources to expand, the entrepreneur managerial skills/attitudes, employment of cheap and unskilled labor

, production of poor quality goods, lack of market for their products, inadequate infrastructural facilities and above all unpleasant taxation policy of Lagos state government. In the light of all these, this study reviews the role being played by various governmental tax reliefs on the growth

of SMEs in Lagos state. The study employed descriptive design, thus, primary data was collected on variables contributing to tax influence and their effect on the growth of SMEs. A sample of 50 respondents representing a percentage of targeted population enterprises in the production sector of Lagos State Industrial area was selected through Stratified and Simple Random Sampling techniques. Data collected through questionnaires, interviews and observations when necessary was analyzed using regression model to estimate the contribution of each variable to effect of tax reliefs on SMEs used over the years by the Lagos state government. The study found that there was a significant correlation between tax reliefs on SMEs growth in Lagos State. The study recommends that there should be a friendly tax policy for all startup businesses preferably a tax reliefs, or an introduction of a growth limit which can be said to be a level stable enough to sustain tax payment.

TAX RELEIFS AND THE GROWTH OF SMES IN SOME SELECTED SMALL AND MEDIUM SCALE ENTERPRISES IN LAGOS STATE