Taxes and Entrepreneurship Research: Future Agenda for PhD Scholars An Academic presentation by Dr. Nancy Agnes, Head, Technical Operations, Phdassistance Group: www.phdassistance.com Email: info@phdassistance.com
TODAY'S DISCUSSION Outline
Introduction Taxation Policies and Entrepreneurial Opportunities Common Challenges with Taxation and Small Entrepreneurship Future Directions
INTRODUCTION
, r e v eli d e We W at h W e s i m Pro
The possible impacts from tax policies on any entrepreneurial initiatives have drawn much attention from policy makers as well as Researchers for some time now. Innovation, as well as entrepreneurship are vital components of the macro-economy and small businesses do contribute in a substantial manner towards employment and growth of the economy. Contd...
Acknowledging these aspects, policy makers at every level of government are said to have an extended history of trying to motivate small business initiatives on the basis of several tax related policies. The level to which such policies could prove to be impactful would depend on the degree to which entrepreneurs would actually respond to taxes. Contd....
Through this review, an attempt is made to Review extant Literature within this domain and outline the agenda for PhD scholars for undertaking research in future. PhD Assistance experts have experience in handling dissertation and assignment in business and management research with assured 2:1 distinction. Talk to Experts Now
TAXATION POLICIES AND ENTREPRENEURIAL OPPORTUNITIES
Figure 1: Median Tax Spread vd. Income
Income decile
S u p e r f ic i a ll y, t h e r e is n o cl a r i t y a s t o t a x p o li cie s h a s t h e p r o p e n s i t y t o im p r o ve o p p o r t u n it i e s f o r e n t r e p r e n e u r s, a ct a s a d e t e r r e n t t o su c ce ss in e n t re p re n e u rs h i p, o r m a ke n o i m p a ct w h a t so e v e r . C o n v e n t i o n a l t yp e s o f pr a ct ic a l in co m e r e la t e d t a xa t i o n s p r o d u ce i n c e n t i v e s t h a t a r e p o ssi b ly o f f se t t in g . P r o g r essive r a t e s w i t h in taxes
lo w e r
the
e n t r e p r e n e u r sh ip .
returns
for
a ch i e vi n g
su cce s s
in
Contd....
H o w e ve r , a t t h e sa m e t i m e , it a lso a ct s a s a n in su r a n ce a g a in st l o s se s . I n a dd i t io n , t h e co n ve n t i o n a l st r u ct u r e o f in co m e t a x o f f e r s g r ea t e r o p p o r t u n it i e s f o r a vo i d i n g t a x a n d e va si o n f o r i n d ivi d u a l s w h o a r e se l f - e mp lo y e d o r m a n y o t h e r s w h o se in co m e s a r e n o t r e p o r t e d b y a t h i r d - p a r t y. T h u s, p o s s ib ly a u g m e n t in g returns from e n t r e p r e n e u r s h i p . I n s t ea d , in t r ic a cie s w it h i n t h e co d e o f t a x t e n d t o p r o d u c e su b s t a n t i a l c o st s in terms of co m p li a n ce and a d m i n i st r a t i o n , w h i ch h a s h ig h s co p e t o b e a g g r a va t e d wit h c o n s is t en t ch a n g e s i n t h e c o d e o f t a x. Contd....
T h e b o t t o m - li n e h e r e is t h a t t h o u g h i t w o u l d b e t e m p t in g t o a s su m e t h a t i n ce n t i ve s l ike l o w e r in g o f t a x a t io n r a t e s c o u ld m a ke a p o si t i ve i m p a c t o n s m a l l e n t r ep r e n e u r ia l in i t i a t ive s, t h e r e i s n o c o n clu s ive S o l u t i o n f r o m t h e T h e o r e t i ca l a n d e m p ir ica l li t e r a t u r e s. PhD A s s i s t a n c e h a s va s t e xp e r ie n ce in d e ve lo p i n g d iss e r t a t io n r e se a r ch t o p i cs f o r s t u d e n t ’s p u r su in g t h e UK d i ss e r t a t i o n in b u sin e ss m a n a g e m e n t . Order Now
COMMON CHALLENGES WITH TAXATION AND SMALL ENTREPRENEURSHIP PhD Scholars have been challenged with diverse problems in terms of data as well as estimation as per evidence presented through literature. Therefore, it becomes imperative to succinctly deliberate such issues, prior to proceeding ahead. Contd....
Wit h r e g a r d s t o d a t a , a s i t h a s b e e n r e f e r r e d t o a b o v e , i t is f r e q u e n t l y ve r y c h a lle n g in g
to
a cq u i r e
data
that
is
u s e f u l f o r b o t h t a xa t io n s r e l a t e d p o l i ci e s a s w e l l a s e n t r e p r e n e u r sh i p . P h D s c h o l a rs o f t e n h a ve t o t a c kl e t h e q u e st io n
k ee p in g
in
mind
a
s p e ci f i c
d e f in i t io n o f e n t r e p r e n e u r sh i p o r sm a l l b u sin e ss
a ct ivi t y
in
m in d ,
h o w e ve r ,
p r o xi e s t h a t a r e a v a ila b l e w o u l d w a r r a n t t h e n e e d f o r ce r t a i n co m p r o m i se s i n a l m o s t a ll st u d i e s.
Contd....
T h o u g h t h e d a t a t h a t is p r e s e n t l y a va i la b le is m u ch b e t t e r t h a n w h a t e xi st e d e a r li e r , t h e f a ct o f t h e m a t t e r is t h a t a l l m e a su r e s o f sm a ll b u sin e ss a ct iv it y a r e in so m e o r t h e o t h e r s e n s e , p r o xie s f o r w h a t a P h D sch o l a r w o u ld a ct u a lly h a ve in m in d . T h is co u l d p r o ve t o b e v e r y cr it i ca l f o r P h D sch o l a r s i n t e r m s o f co n d u ct in g a n e m p i r ic a l a n a ly sis, p a r t icu l a r l y i f o n e is w o r r ie d a b o u t b i a s f r o m p r o xie s t o a r i se o r m o r e co n ve n t io n a l t yp e s o f m e a s u r e m e n t r e la t e d e r r o r s. P h D A ssi st a n c e a ssist s y o u in d e ve lo p i n g u n i q u e a n d u n e xp lo r e d r e se a r c h t o p i cs o n b u s in e ss a n d m a n a g e m e n t f o r y o u r U K d is se r t a t io n .
FUTURE DIRECTIONS On the whole, Latest Literature on Entrepreneurship and taxation hints at a negative association between tax rates and measures related to entrepreneurship with the most consistent outcomes from modifications in rates of corporate taxes. Evidence derived most recently from international literature also directs at a negative association between complexity and progressivity and an array of entrepreneurship measures. A very critical warning to such generalizations could be observed through the United States based panel data studies on rates of federal taxes. Contd....
S t u d i e s o n t h e b a si s o f su r v e y r e la t e d in f o r m a t io n t e n d t o p r o v id e co n t i n u o u s p o s it ive a s so ci a t io n a m o n g st e n t r e p r e n e u r sh ip a n d t a x a t io n , w h e r e a s a n aly sis o n t h e b a sis o f d a t a p e r t a i n in g t o t a x r e t u r n s w o u l d su g g e s t a n e g a t ive im p a ct t h a t i s m o r e c o n s is t e n t w it h in t e r n a t i o n a l l it e r a t u r e . T h is w o u ld a l so b e f r e q u e n t ly u t i l i zi n g a d mi n i s t ra t i v e d a t a. C o n si d e r in g t h a t a ll a v a i la b le m e a su r e s r e l a t e d t o e n t r e p r e n e u r ia l i n it i a t i v e s a r e in n a t e l y i m p e r f e ct , i t p r o vi d e s t r e m e n d o u s sco p e f o r P h D sch o la r s in f u t u r e t o in ve s t i g a t e it . Contd....
T h e r e f o r e , P h D R e s e a r ch S ch o la r s in f u t u r e n e e d t o ca r e f u ll y t a ke in t o a cc o u n t d i ve r s e o p t io n s w it h a vie w t o a n a lyse t h e st r e n g t h o f p r i m a r y f i n d i n g s a n d s e n s it i v it y t o a l t e r n a t iv e a ss u m p t io n s. I n a w o r ld t h a t is p e r f e ct , a d m i n is t r a t iv e d a t a , a lo n g w it h m a t ch e d su r ve y
w o u ld
e n a b le
r e co n ci li a t i o n
a m o n g st
se e m in g ly
d ive r g e n t
o u t co m e s f r o m s m a ll e n t r e p r e n e u r i a l i n co m e st u d ie s a n d st u d i e s o n se l f - e m p l o ym e n t .
CONTACT US UNITED KINGDOM +44 7537144372
INDIA +91-9176966446 EMAIL info@phdassistance.com