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

Author

Listed:
  • 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)

  • Aristovnik Aleksander

    (Associate Professor, PhD, Research Program Head, Chair of Economics and Public Sector Management, Faculty of Public Administration, University of Ljubljana, Slovenia)

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.

Suggested Citation

  • Ravšelj Dejan & Kovač Polonca & Aristovnik Aleksander, 2019. "Tax-Related Burden on SMEs in the European Union: The Case of Slovenia," Mediterranean Journal of Social Sciences, Sciendo, vol. 10(2), pages 69-79, March.
    • Handle: RePEc:vrs:mjsosc:v:10:y:2019:i:2:p:69-79:n:7
    DOI: 10.2478/mjss-2019-0024
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    Citations

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    Cited by:

    1. Dejan Ravselj & Aleksander Aristovnik, 2020. "The Relationship between Tax-Related Administrative Barriers and SMEs Characteristics: Evidence from Slovenia," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 381-388.
    2. Hyeongtae Cho & SungMan Yoon, 2023. "Do Governmental Tax Reliefs for Investment Lead to Investment Efficiency and Sustainability for SMEs? Evidence From South Korea," SAGE Open, , vol. 13(1), pages 21582440231, February.
    3. Alka Obadic & Dejan Ravselj & Aleksander Aristovnik, 2020. "Administrative Barriers in the Field of Employment in the EU: Empirical Evidence from Croatia and Slovenia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 533-553.

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