Mitigating Taxation Effects on Small Business Enterprises Performance in Kenya

Abstract

For small business enterprise performance to improve, the government needs to reduce taxation or even give tax relief or zero-rate the tax due. In Kenya, national government has taxes levied on all goods manufactured or produced locally and those imported. Kenya Revenue Authority assisted by other government agencies ensure nothing is left untaxed. The local governments are also trying to get their share of tax revenue by ensuring no small business enterprise operates without paying their respective licenses and rates. Cartels are not left behind in their fight for survival by raising their survival funds from the small business enterprises. Small business enterprises are the majority enterprises and the best victim for cartel agencies. Every industry channel their goods and services to customers through the small enterprises. For each industry to survive, it has its charges to those interested in doing business with their products and services. Every small business enterprise will rate its performance through the market share it commands, it’s profit margin over a given period of time against its costs and the many variety goods or services the small business offers. This paper looks at how small business enterprises are mitigating the effect of taxation they find themselves in from the government, cartels and industry to survive.