Effect Of Government Incentives On The Performance Of Selected Small And Medium Scale Enterprises In Ikwuano, Abia State, Nigeria

ABSTRACT

The study examined the effect of Government incentives on the performance  of selected small and medium scale enterprises in Ikwuano,  Abia state,  Nigeria. The objectives were to identify and analyze the various government  incentives available to small and medium scale enterprises in the study area,  to ascertain the  effect  of  tax  reduction  on  the profitability  of small  and  medium  scale enterprise in study area and to ascertain the effectof multiple taxation on the profitability of small and medium scale enterprise in the study area.  Primary data were sourced from  questionnaires that were given to owners of small and medium scale enterprise.  The data  were analyzed using simple and multiple regressions. The result revealed  that tax reduction, grants, training of owners of  SMEs  have positive  and  significant  effect on profitability   of small  and medium scale enterprise, tax reduction has  positive  and significant effect on profitability of small and medium scale enterprise and multiple taxation has negative    and significant  effect on profitability of small  and  medium  scale enterprise. It was recommended that owners of small and medium scale enterprises in Ikwuano, Ahia state, Nigeria should engage the government in active dialogue to identify the negative effects of multiple taxation on the profit of small  and  medium  scale  enterprise  and  the  need for   them  to  reduced difference taxes charges by Governments