University of Piraeus. International Strategic Management Association
Abstract
Purpose: Legislation and tax authority conduct upon play a very important role in determining overall business environment by defining the rules under which the enterprises have to operate. Nonetheless, the complexity of legislation creates also unnecessary administrative burdens and consequently hinders entrepreneurial activity. Accordingly, the main aim of this paper is to establish whether there is a link between the perception of administrative barriers in the field of tax compliance and financial reporting and different characteristics of small and medium enterprises (SMEs). Design/Methodology/Approach: Conducting a field survey and applying a parametric statistical technique on a sample of 293 Slovenian SMEs. Findings: The empirical results show that there are statistically significant differences in characteristics between those SMEs that perceive administrative barriers above average and those that perceive administrative below average in the field of tax compliance and financial reporting. Practical Implications: The overall findings suggest that regulatory authorities bear in mind that complexity of tax-related administrative barriers have a price resulting in deterioration of the business environment for SMEs and their performance. Originality/value: Utilising a comprehensive dataset covering Slovenian SMEs made by merging multiple data sources, namely field survey, balance-sheet and income-statement data, representing the main originality and value of the paper.peer-reviewe