The Significance of Tax in the Promotion of Small Enterprises in Zimbabwe: A Case Study of Harare
The promotion of small enterprises has become a main concern for the government of Zimbabwe due to the critical roles there are now playing in employment creation and contribution to the GDP in the face of large firms’ collapse. Despite the small enterprises’ importance to the well-being of the country and the concerted efforts by the government to promote them, it is unfortunate that small enterprises are not reaching their full potential and this is attributed to a number of challenges mainly the impact of taxation in terms of complexity and costs. Thus, the study aims to establish the significance of the tax on the promotion of small enterprises. Phenomenology research philosophy and a case study were used in this study. Questionnaires and focus groups were used as research instruments and Qualitative Data Analysis was used to analyse data. The study revealed that indeed the tax plays a significant role in the promotion of small enterprises and economic development of Zimbabwe and it recommends that small enterprises should be encouraged to pay tax but should be given tax holiday of up to 5 years depending on their circumstances and other tax incentives the state see fit as well as proper client education on the significance of tax.