Sesema Matsepiso Chalatse , Prof. Ronnie Lotriet
Abstract
The study investigates how government policies and regulations impact the development and growth of SMEs in Lesotho. It is grounded in growth theory and employs a phenomenological strategy. The population included registered SMEs, informal SMEs, commercial banks, the tax authority, the Department of Small Businesses, government agencies, the Lesotho Chamber of Commerce and Industry, and business associations. The sample size, determined by saturation within each stakeholder group, consisted of 37 participants. Thematic analysis was used to inductively analyze the data, identifying trends and themes.
The findings showed that tax and monetary policies have a significant negative influence on SMEs’ growth and development in Lesotho. The study concluded that government policies and regulations have a significant and positive influence development and growth of SMEs. The study explicitly recommends that the Lesotho government adopt a more balanced policy approach and reform tax, monetary policies, and business licensing and registration regulations to address the specific situations of SMEs to contribute to sustainable growth. The simplified business taxation system, referred to as the Simplified Business Taxation (SBT), needs to be reviewed to include incentives and to ensure its effective implementation.
The findings showed that tax and monetary policies have a significant negative influence on SMEs’ growth and development in Lesotho. The study concluded that government policies and regulations have a significant and positive influence development and growth of SMEs. The study explicitly recommends that the Lesotho government adopt a more balanced policy approach and reform tax, monetary policies, and business licensing and registration regulations to address the specific situations of SMEs to contribute to sustainable growth. The simplified business taxation system, referred to as the Simplified Business Taxation (SBT), needs to be reviewed to include incentives and to ensure its effective implementation.