Tax-Related Burden on SMEs in the European Union: The Case of Slovenia

Ravšelj Dejan, Kovač Polonca and Aleksander Aristovnik
Additional contact information
Ravšelj Dejan: Junior Researcher, Chair of Economics and Public Sector Management, Faculty of Public Administration, University of Ljubljana, Slovenia
Kovač Polonca: Full Professor, PhD, Chair of Administrative-Legal Area, Faculty of Public Administration, University of Ljubljana, Slovenia

Mediterranean Journal of Social Sciences, 2019, vol. 10, issue 2, 69-79

Abstract: Small and medium enterprises (SMEs) are very important for the European economy. However, SMEs often encounter various barriers, whereby tax-related barriers are perceived as the most burdensome that affects their business operations and entrepreneurial activity in general. The aim of this paper is twofold. First, it attempts to identify SMEs perception on current state and measures to be carried out in order to reduce respective red tape. Second, it tries to establish the relationship between burdens imposed by tax policy and entrepreneurial activity. Using hierarchical cluster analysis and descriptive statistics two different datasets are analyzed for the European Union (EU) and Slovenia separately. The results provide evidence that tax burden is less influential than tax administrative burden among EU countries by considering their impact on new business density and total early-stage entrepreneurial activity. Additionally, the results for Slovenia reveal that the need for a stable tax system, with IT and procedurally related measures are highlighted.

Keywords: Tax administrative burden; Red tape reduction; SMEs; European Union; Slovenia (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://doi.org/10.2478/mjss-2019-0024 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:mjsosc:v:10:y:2019:i:2:p:69-79:n:7

DOI: 10.2478/mjss-2019-0024

Access Statistics for this article

Mediterranean Journal of Social Sciences is currently edited by Alessandro Figus

More articles in Mediterranean Journal of Social Sciences from Sciendo
Bibliographic data for series maintained by Peter Golla ().