entrepreneurship, innovation and small business - a sketch in five slides
TRANSCRIPT
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Legal structures and compliance burdens
Small businesses operate as sole traders, partnerships, trusts, companies or a
combination of these. A small business may use a complex structure, including
trusts and companies, for a number of reasons, including tax.
Small businesses tend to pay more per dollar of turnover in tax compliance costs
than larger businesses. This limits money available to grow the business.
Medium to large
Small to medium
micro0
20
40
60
80
100
Tax compliance cost (per $1000 of turnover)
Tax compliance cost (per $1000 of turnover)
Innovation: benefits and risks
Innovation comes with risk and rewards. Companies engaged in innovation are more
than twice as likely to report increases in the total number of employees, but investing
in innovation can be risky. Unless it is appropriately designed, the tax system can
further discourage risk-taking, reduce investment and stifle innovation in the economy.
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