The Influence of Tax Policies on Investment Decisions and Business Development of Micro, Small, and Medium-Sized Enterprises (MSMEs) and its Implications for Economic Growth in Indonesia

Abstract

This study investigates the relationship between tax policies, investment decisions, business growth, and economic growth in Micro, Small, and Medium-Sized Enterprises (MSMEs). The purpose is to examine the influence of tax policies on investment decisions and business development and their implications for economic growth. Using a quantitative strategy based on a survey research design, data were collected from a sample of MSMEs. The findings indicate that favorable tax policies positively influence MSMEs' investment decisions and business growth. Policymakers should design tax policies that incentivize investment and business growth, while MSMEs should strategically leverage favorable tax policies to drive growth and competitiveness. The study's limitations include its regional focus and reliance on self-reported data. Future research should take longitudinal studies and contextual factors into account. Overall, the study provides policymakers and MSMEs with insights for promoting sustainable growth and development in the MSMEs sector, resulting in favorable economic outcomes.