CMI Working Paper | 2006

Bribes, Taxes and Regulations: Business Constraints for Micro Enterprises in Tanzania

Odd-Helge Fjeldstad, Ivar Kolstad and Knut Nygaard (2006)
Bergen: Chr. Michelsen Institute (CMI Working Paper WP 2006: 2) 17 p.

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This paper analyses the business environment for micro enterprises in Tanzania based on survey data. The primary objective of the study is to identify major constraints facing the firms' business operations. Taxation, corruption, and regulations in the form of licences and permits, are found to be the most important constraints on business operations. Reported constraints vary according to firm characteristics such as age, location, education and gender of the owner. Contrary to previous studies and current policies, financial constraints and property rights are not perceived as important constraints.

Odd-Helge Fjeldstad

Research Professor, Coordinator: Tax and Public Finance

Ivar Kolstad

Associated Research Professor

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