The Impact Of Laws and Regulations on Micro and Small Enterprises in Niger and Swaziland

This technical paper provides insights into the role of regulations and taxes on micro and small enterprises (MSEs) in Niger and Swaziland.

The paper:

• Provides an overview and descriptive profile of the enterprises in each of the two countries;
• Reviews the laws and regulations operating in the two countries under study;
• Explores the extent to which the enterprises in the sample complied with the laws and regulations of these countries;
• Examines the effects of the legal and regulatory system on the functioning and growth of the enterprises.

Further, the study shows that some constraints, such as the fiscal burden, have a stronger impact than others, and that the weight of the many constraints varies according to the location and size of enterprises.

The overall findings of the study reveal that:

• Most SMEs do not comply with the full array of regulations and tax laws that they face in either Niger or Swaziland;
• There is no statistical evidence that compliance with registration regulations is greater in Niger than in Swaziland;
• Small and micro entrepreneurs in Niger or Swaziland do not perceive regulations or taxes to be a major constraint;
• Although important for a few enterprises at particular stages in their life cycle, the regulatory environment for most SMEs, is only a minor determinant of their economic viability.