Assessing the Effects of Tax Compliance on Business Growth: A Case study among selected SMEs in Ndola District, Zambia
Year: 2026
Type: article
Abstract: This study assessed the effects of tax compliance on business growth for SMEs in Ndola District, Zambia. The objective was to assess the effects of tax compliance on business growth, measured in terms of revenue, business sustainability, and operational costs. The study adopted a mixed-methods research design with a sample size of 50 SMEs. Regarding business revenue, the findings showed that tax compliance was positively associated with revenue performance, although the relationship was not statistically significant (p = 0.3064). For business sustainability, the findings established a statistically significant positive effect of tax compliance, indicating that compliance contributes to long-term business continuity and sustainability (p = 0.0002). Regarding operational costs, the findings showed that tax compliance had a statistically significant positive effect on operational costs, with higher compliance-related costs associated with increased business performance and growth effects (F = 4.35, p = 0.0423). The study concludes that tax compliance has mixed effects on SME growth, supporting business sustainability while increasing operational costs, but its effect on revenue was not statistically significant. The study recommends strengthening taxpayer education, simplifying tax procedures, and providing appropriate support to SMEs to reduce compliance burdens and promote sustainable business growth that complies with tax obligations
Authors: Carol Mung’omba, Peter Silwimba
Institution: Information and Communications University
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W7225613839