Optimization of local taxation and sustainability of micro-enterprises in Benin: Proposal of an innovative analytical model based on a systematic review of the literature

Résumé

The contribution of the microenterprises to the local economic development in developing countries like Benin is significant and known. But a rigid local taxation regime contributing to the increasing of local government revenue, in terms of mobilization system, place added limits on the growth potential of these enterprises.

By employing a systematic review of the literature, the study attempts to build a model that illuminates to what extent is the relationship between local tax and the sustainability of the microenterprises on the one hand and the local government self-development capacity on the other hand is moderated by the benefits in exchange for local fiscal constraints faced by microenterprises?

The summary of critical points of current knowledge about the optimization of local taxation shows that some benefits (Training for microentrepreneurs, credit facilitation, documentation…) in exchange for local fiscal constraints faced by microenterprises can moderate the effect of the local tax (TPS) on the survival and the performance of the microenterprises in the one hand and the local financial capacity and self-development of the municipality in the other hand.