Topics: World Bank, Government, Taxation Pages: 2 (490 words) Published: April 13, 2013
Privatisation of business activities.
The transfer or selling of state owned assets to the private sector or owners have brought an added advantage to several entrepreneurs within different industries. Governments reduce the level of competition between the private and public owned businesses by removing or reducing statutory restrictions (Sheshinski and López-Calva, 2010). This has since been implemented by governments after the initiative by the international finance community. The community pushed for this under the structural adjustment programs and the community includes players such as the World Bank and others (Addison, T. and L. Demery. 2009).This enables the cutting of costs for the government and therefore will bring up the downsizing of taxes for the citizens which promotes balanced government budgets. This has in a way given the potential customers the buying power to purchase the mealie meal produced by Realing enterprises due to their residual income which will be higher (Mintz, 2008).

Tax breaks.

This is defined as a savings over the amount of tax that the entrepreneur had to pay. There is a savings that is provided through the deduction of tax, exemptions and tax credits. Employees have been motivated to work overtime and increase output since the amount of money the entrepreneur will be paying and his workers receiving would increase due to the reduction in the marginal tax rate (Shah, 2009). Moreover, there has been the introduction of tax reduction on south African manufactured goods imported into Zimbabwe (ZIMRA, 2012) .This has been an opportunity for the entrepreneurship as it enabled the importation of cheaper materials that are used in the business. Thus creating a conducive operational situation that can promote or stimulate an increase in sales as well as a higher return on investment (Zee, Stotsky and Ley, 2010).

* There is a need to consider inter-firm linkages which may act as an opportunity to promote...
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