Suchergebnisse

Regulation remains a contentious topic between small firms, policy makers, and scholars. Business lobbying organizations persistently claim that regulation acts as a deterrent to economic activity. In contrast, policy makers and some scholars have argued that regulation creates net benefits for society and so may have a modest positive impact on SMEs. This paper seeks to offer at least a partial explanation for these very different perspectives. Through studying the majority of UK Impact Assessments issued over the twelve years from 1998 to 2009 and relevant government publications, we find that differences in the objective decision-making criteria (algorithms and heuristics) of the parties involved provide at least a partial explanation of why their views appear irreconcilable. It is argued that both are acting rationally in pursuit of higher goals and are not simply 'gaming' in order to gain the greatest private advantage.

In this paper we present the results from a study of the role that tax incentives play in business owners' decisions on capital investment and research and development (R&D) expenditure. We use semistructured interviews with fifteen business owners and directors and five financial advisers to establish the extent to which tax incentives are considered in capital and R&D investment decisions, and to identify obstacles that might prevent UK capital allowances and R&D tax policies from achieving their goals. First, we investigate whether incentives are sufficient to encourage investment and whether the costs of accessing the incentives faced by similar firms limit the potential benefits of the policy. Second, we explore the stage in the process of investment decision making at which tax issues are considered and the degree of importance attached to tax incentives. For example, is the tax treatment integral to the decision-making process or only a 'final consideration' at the end? Third, we investigate the impact of uncertainty on the tax incentives, since this can be an important aspect of investment decisions, and may diminish the effectiveness of policy. It is not clear whether the incentives offered are effective in generating additional investment and in helping financially constrained firms. Under uncertainty the incentives need to be substantial to influence the decision to invest. Effective policy should assist firms who would otherwise struggle to realise their business plans.

The small-business sector is the breeding ground of new businesses, but distinguishing those firms that wish to grow from the hundreds of thousands of lifestyle firms is difficult. Studies suggest very few small firms seek growth, and fiscal policies aimed at promoting business growth could be misdirected in the belief that the ambition to grow is widespread in this part of the economy. The small-firm sector is dominated by the self-employed and an important classification is the large numbers of 'own-account self-employed'. It is unclear to what extent these people should be classified as true 'business owners'. Using face-to-face interviews, the authors explore the motivations for becoming self-employed and the growth aspirations of self-employed people. Based on the outcomes, suggestions are made about how fiscal policy might be targeted to improve neutrality and promote business growth.

The purpose of this paper is to report on a comparative study of the impact on the SME economy (fewer than 250 employees) of the UK and US (New York State) tax regimes. This explorative study is part of the ongoing small business taxation research programme undertaken in association with NatWest Bank. The research involves (a) the computation of the tax position of a sample of UK-based small businesses (a self-employed person, a partnership, and a small limited company); (b) the application of the tax regime of New York State to the UK business cases studies; (c) the development of two computer simulation models that estimate the direct tax burden incurred by small businesses in the United Kingdom; and (d) the application of the tax regime of New York State to the UK models. This research forms the basis of a comparative discussion about the business tax regime in the United Kingdom and USA and throws some light on the on-going debate about the development of the tax regimes applicable to small businesses in OECD countries. The paper concludes with a summary of the key findings and policy implications and offers a brief discussion on progress towards tax harmonisation from the small business perspective.