Effect of Fines and Penalties on Legal Compliance of SMES in Tanzania: A Case of Business Registrations and Licensing Agency

Authors: Dennis Hyera, Yasmine Ramadhani, Philipina Kiwala

Country: Tanzania

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Abstract: This study sought to ascertain the effect of fines and penalties on the legal compliance of Small and medium Enterprises in Tanzania, particularly BRELA. Morale Theory was adopted in this study. The descriptive research design was adopted in this study, and both the quantitative approach to research and the qualitative approach were adopted to complement one another. The researcher selected 140 officials from BRELA, Dar es Salaam, and the researcher used simple random sampling to select a sample size. For data collection, the study relied on both primary and secondary sources. The data acquired in this investigation was quantitatively and qualitatively analyzed. To analyze quantitative data using descriptive and inferential statistics, the Statistical Package for Social Sciences (SPSS) version 26 was used as a data analysis tool. Also, qualitative data was analyzed using content analysis. Findings indicated that fines and penalties improve legal compliance among SMEs, while complexities in the existing fines and penalties strategy decrease legal compliance. This study concludes that fines and penalties have a positive and significant effect on legal compliance. The study recommends future research on the efficiency of BRELA's digital systems in enhancing company registration and licensing procedures as proposed.

Keywords: Fines, Penalties, Legal Compliance, SMEs, Business Sector

Paper Id: 230264

Published On: 2023-07-25

Published In: Volume 11, Issue 4, July-August 2023

Cite This: Effect of Fines and Penalties on Legal Compliance of SMES in Tanzania: A Case of Business Registrations and Licensing Agency - Dennis Hyera, Yasmine Ramadhani, Philipina Kiwala - IJIRMPS Volume 11, Issue 4, July-August 2023.

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