RELATIONSHIP BETWEEN GOVERNMENT TAX INCENTIVES AND SUSTAINABILITY OF SMALL BUSINESSES IN LAGOS STATE

Abstract

This determined into the relationship between tax incentives by government and sustainability of small businesses in Lagos State, Nigeria. Given the importance of small firms as engines of economic growth, the article seeks to understand howpenury policies, such as tax incentives, affect these firm's survival and long-term resiliency. The study adopted a correlational design and data were obtained from 174 small business operators in Lagos State through the use of questionnaire. The result indicates a low but significant r = 0.45, p value = 0.0005) correlation between  government tax incentives and sustainable of small businesses. The evidence you are finding also brings out the value that appropriately designed and judiciously implemented tax incentives can have in improving cash flow, easing formalization and facilitating innovation— things that are vital for business survival. Yet, the bureaucratic intricacy, the lack of administrative capacity and the risk of distorting the market reflect the necessity of a coherent policy. Taking these insights into consideration, the study suggests that those in power should simplify tax systems, design incentives to the sector, enhance institutional capacity, and (optional) financial and capacity dimensions should be incorporated in the analysis of influence fiscal measures. In the final analysis, the results underscore the importance of strategic and targeted tax incentives as indispensable policy mechanisms to foster the resilience and sustainability of small firms in Lagos State, with overall implications for wider economic development and poverty reduction.