Taxation and SMEs in Emerging Markets - Case Study Approach to Compliance, Growth, and Sustainable Development
Abstract
Tax compliance remains a critical challenge for SMEs in emerging markets, as complex regulations, high compliance costs, and limited financial resources hinder their ability to meet tax obligations. This study aims to examine the interplay between tax compliance, SME growth, and sustainable development, highlighting key barriers and opportunities. Using a qualitative case study approach, data were collected from SMEs across various sectors in emerging economies, analyzed through thematic analysis. The findings reveal that regulatory complexity and perceived tax fairness significantly impact SME compliance behavior, while sustainability-oriented tax incentives remain underutilized. SMEs that engage in strategic tax planning and sustainability initiatives experience improved financial resilience and long-term competitiveness. These results suggest that simplifying tax policies, enhancing digital tax administration, and promoting sustainability-driven fiscal incentives can foster SME growth and economic resilience. The study contributes to taxation and SME literature by integrating sustainability into compliance frameworks, offering insights for policymakers and business
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