Taxation and the survival of small-scale enterprises in Ilorin South, Kwara State, Nigeria

Abstract

Small-scale enterprises (SSEs) are a primary means of economic survival for many individuals in both rural and urban areas. However, their medium to long-term survival is often adversely affected by various factors, particularly those related to finance. This study investigates the impact of taxation on the survival of small-scale enterprises in Ilorin South using a survey research approach. 196 questionnaires were distributed within four commercial clusters of the target area with 179 (91.33%)retrieved. Descriptive statistics and ordered probit regression techniques were employed to analyse the data. The findings show that tax compliance frequency, the convenience of available tax payment channels, and the ease of covering running costs within the business environment were discovered to be crucial to the survival of SSEs.