ASSESSING THE EFFECTS OF TAX RATES ON THE ECONOMIC GROWTH OF SMALL SCALE BUSINESS IN MALAWI( CASE STUDY AT EXIPA FRESH FOOD)

This study assesses the effects of tax rates on the economic growth of small-scale businesses in Malawi. Small-scale enterprises play a crucial role in the country’s economy by creating employment, generating income, and contributing to overall economic development. However, taxation remains one of the major challenges affecting their performance and sustainability. The study aims to examine how different tax rates influence business growth, profitability, and compliance among small-scale enterprises.
A quantitative research approach will be adopted, using structured questionnaires to collect data from selected small-scale business owners. The study will also utilize secondary data from government reports and relevant literature to support the analysis. Key variables to be examined include tax rates, business revenue, operating costs, and growth indicators such as expansion and employment levels.
The findings are expected to reveal that high tax rates negatively affect the growth of small-scale businesses by reducing their profitability and limiting their ability to reinvest in their operations. Additionally, excessive taxation may encourage tax evasion and informality, which further hinders economic development. On the other hand, moderate and well-structured tax systems can promote compliance and support business growth by creating a favorable operating environment.
The study will provide recommendations to policymakers on designing tax policies that balance revenue generation with the growth needs of small businesses. It will also highlight the importance of tax education and simplified tax procedures to improve compliance. Ultimately, this research contributes to a better understanding of how taxation impacts small-scale businesses and offers insights into fostering sustainable economic growth in Malawi.