The Impact of Tax Policies on Small Business Growth in Developing Countries: A Case Study of Montserrado Mount County, Republic of Liberia

Authors: Lemuel David

Abstract:

This study aims to investigate The Impact of Tax Policies on Small Business Growth in Developing Countries: A Case Study of Montserrado Mount County, Republic of Liberia. Businesses in Liberia are crucial for job creation and the economic empowerment of its citizens, especially in Grand Cape Mount County where they provide 95% of all jobs and support local capital formation. However, many businesses face challenges that lead to premature closure, including tax-related issues such as multiple taxations and high tax burdens. This research aims to examine the effects of various taxation on business survival in Grand Cape Mount County. The study employed a survey research design with a population of 50 and a sample size of 74. Data was collected using a self-administered questionnaire and analyzed quantitatively with simple percentages, and the research hypotheses were tested with ANOVA. The study findings revealed that multiple taxations hurts business survival, and the relationship between business size and its ability to pay taxes is significant. Therefore, the study recommends that the government of Liberia should create uniform tax policies that support business development in Grand Cape Mount County, and consider the size of businesses when formulating tax policies.

Keywords: multiple taxations, businesses, mortality, growth