THE PERCEPTION OF TAXATION ON THE GROWTH OF MICRO-ENTERPRISES IN CAMEROON: CASE STUDY OF BUEA, SOUTH WEST AND DOUALA I, LITTORAL REGION
By: Ntep Joseph Simeon, Kouegoua Edouard Rene & Youfang Sitchedieu M. L.| Department of Business & Management Studies | Entrepreneurship and Management
The main aim of this research paper was to determine the perception of taxation on the growth of Micro enterprises in Cameroon, notably in Buea, South West and Douala I, Littoral Regions. Three research objectives were formulated to guide and direct the study. Specific objectives investigated the influence of tax rate, tax policy and types of taxes on the growth of Microenterprises. Descriptive research design was used for this study. A sample of 266 respondents were selected using stratified random sampling from micro business owners in Buea, South West Region and Douala I, Littoral Region. The primary data obtained using questionnaire was analyzed using descriptive statistics and multiple regression model. Findings from the study revealed that tax rates have a negative significant effect on the growth of micro enterprises. Also tax policies have a positive effect on the growth of micro enterprises and types of taxes have a positive significant effect on the growth of micro enterprises. Since the types of taxes are determined by the level of income that the sole proprietors of micro enterprises receive, if better and favorable types of taxes are adopted, then they would boost expansion of micro enterprises. It is the recommendation of this research paper that more friendly tax policies be employed for micro businesses such as tax holiday, or introducing a growth limit with a level that is sufficiently stable to sustain payment of taxes. The study is further emphasizing on the view that the Tax agency, DGI, need to review its taxation procedures as well as heightened research on firm’s management procedures, the role of taxation policy and distribution of taxes on micro enterprises.
Key words: Taxation, perception, growth of micro enterprises