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Making Business Difficult While Demanding Tax: A Double Burden on Entrepreneurs

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Running a business is a challenging endeavour, requiring resilience, innovation, and meticulous financial management. However, in many countries, businesses face a growing dilemma: burdensome regulations, economic obstacles, and systemic inefficiencies that make operating a business increasingly difficult, all while being required to meet heavy tax demands. This contradictory environment stifles growth and threatens the sustainability of enterprises, particularly for small and medium-sized businesses.

This article explores how making business operations more difficult while demanding tax compliance can harm both businesses and economies, and suggests potential solutions to alleviate these pressures. Operating a business in today’s economic landscape often involves navigating a maze of hurdles, including the following. Complex regulatory frameworks – overlapping and inconsistent rules across jurisdictions create confusion and inefficiency. Lengthy approval processes for permits, licenses, and compliance checks delay projects and increase costs.

High Operating Costs – rising costs for raw materials, energy, and labour shrink profit margins. Inflation and supply chain disruptions further complicate cost management. Economic uncertainty – businesses must contend with fluctuating market demand, geopolitical tensions, and economic downturns. Unpredictable interest rates and currency fluctuations increase financial instability.

Lack of support for innovation – limited access to funding and grants for technology adoption hinders competitiveness. Inflexible policies fail to adapt to the unique needs of emerging industries or start-ups.

While businesses are grappling with operational challenges, they are also required to meet tax demands. Key issues include: High Tax rates – excessive corporate tax rates leave businesses with less capital for reinvestment and growth. Payroll taxes, sales taxes, and property taxes add to the cumulative financial burden.

Inflexible Tax Policies – tax codes often fail to accommodate seasonal or volatile businesses. Limited deductions for critical investments, such as eco-friendly upgrades or employee training, discourage innovation.

Administrative Complexity – complicated tax filing processes demand significant time and resources, especially for SMBs without dedicated financial teams. Frequent audits and shifting tax regulations increase uncertainty and stress for businesses. Penalties for Non-Compliance – strict penalties for late payments or errors in tax filings disproportionately affect smaller businesses.

Here, the crucial issue worth to explain is the impact of a difficult business environment coupled with Tax demands. When governments impose high taxes while making business operations more difficult, the consequences can be far-reaching: Stifled Growth- businesses struggling to stay afloat cannot invest in expansion, innovation, or workforce development, slowing economic progress.

Job Losses – high operational costs and tax burdens often lead to layoffs or hiring freezes, impacting employment rates. Informal economy growth
Overburdened businesses may move to informal, untaxed operations, leading to revenue losses for governments. Discouragement of new ventures – aspiring entrepreneurs are deterred from starting businesses due to a perceived lack of support and high risks.

To foster a thriving business environment while ensuring tax compliance, policymakers must address these issues through reforms and targeted support. Streamline Regulations – simplify bureaucratic processes for permits, licenses, and compliance checks. Create centralized platforms for regulatory filings to reduce administrative overhead. Implement fair Tax Policies – introduce progressive tax systems that consider business size, revenue, and industry challenges. Provide tax relief for businesses investing in innovation, sustainability, or job creation.

Support for SMBs – offer low-interest loans, grants, and subsidies for small businesses to reduce financial strain. Establish mentorship programs to help entrepreneurs navigate regulatory and tax requirements. Foster Public-Private collaboration – encourage dialogue between businesses and policymakers to ensure tax and regulatory frameworks reflect real-world challenges. Partner with industry groups to develop sector-specific policies that drive growth. Leverage technology – digitize tax filing and compliance processes to reduce errors and improve efficiency. Use data analytics to identify industries or regions that need targeted tax incentives.

To conclude, demanding tax compliance while making business operations increasingly difficult is counterproductive to economic growth and societal well-being. Governments must recognize that thriving businesses are not only a source of tax revenue but also key drivers of innovation, employment, and community development.

A balanced approach – one that reduces operational barriers, simplifies tax systems, and offers meaningful support – will empower businesses to succeed while ensuring sustainable public revenue. Only by addressing these dual burdens can economies unlock their full potential and foster long-term prosperity for all stakeholders.

Name: Tizita Gibre

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2. Education: 10+2

3. Company name: Mido Women’s Beauty salon

4. Title: Founder

5. Founded in: 2021

6. What it does: Production and distribution of natural content aesthetic goods

7. Headquarters: Addis Ababa

8. Start-up capital: 900,000 birr

9. Current capital: Over 3 million birr

10. Number of employees: 7

11. Reason for starting the business: To provide a wide range of products

12. Biggest perk of ownership: I’ve been able to create job opportunities

13. Biggest strength: Being able to achieve everything I want to do

14. Biggest challenge: Lack of understanding in the community regarding the product

15. Plan: I’m going to create 100 jobs and expand my products

16. First career path: Women hairdresser

17. Most interested in meeting: Dawit Tsige

18. Most admired person: None

19. Stress reducer: Keeping myself busy with work

20. Favorite book: Bible

21. Favorite pastime: Spending time with my child

22. Favorite destination to travel to: None

23. Favorite automobile: Rolls-Royce Boat Tail

Rethinking linear thinking

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In an age defined by rapid change and complex challenges, it seems that humanity has increasingly fallen into the trap of linear thinking. This inclination, which has been exacerbated by rigid social structures and educational systems, limits our ability to address the multifaceted issues we face today. As we navigate the complexities of late modernity, it is crucial to rethink our approach and embrace non-linear thinking to foster innovation and adaptability.

From early childhood through adulthood, individuals are often conditioned to think linearly. This process begins in educational settings where rigid curricula prioritize memorization and standardized testing over critical thinking and creativity. As a result, many people develop a mindset that views problems in a straightforward, cause-and-effect manner, overlooking the intricate web of interconnections that define our world.

The current global order reinforces this linear perspective. Economic systems, political structures, and societal norms all promote a simplistic view of progress—one that assumes that past successes will guarantee future outcomes. This mindset can be particularly dangerous in a world where unpredictability reigns supreme. The belief that we can predict and control every variable leads to complacency and a false sense of security.

Historically, humanity has faced natural disasters like hurricanes and wildfires without the ability to predict their occurrence. However, advancements in technology have given us a sense of control over certain aspects of our environment. While early detection systems have improved our response to some calamities, they have inadvertently reinforced the notion that we can manage everything through linear thinking.

This “normalcy bias”—the assumption that because things worked yesterday, they will continue to work tomorrow—has become deeply ingrained in our collective psyche. It blinds us to the reality that not all challenges can be anticipated or solved through conventional means. As we confront issues like climate change, social inequality, and global health crises, it is imperative that we recognize the limitations of linear thinking.

Urbanization has further entrenched linear thinking into our daily lives. With over half of the world’s population now living in cities, the expectation of uninterrupted services—such as water supply, traffic flow, and electricity—has become the norm. Urban dwellers extrapolate from their experiences, believing that as cities grow, so too will their conveniences.

However, this perspective fails to account for the finite nature of resources. The assumption that if one million cubic meters of water are needed today, two million will suffice when the population doubles is fundamentally flawed. It ignores the reality that resources are not limitless and that sustainability must be at the forefront of our planning efforts.

At the heart of our economic narrative lies a monstrous fallacy: the belief that infinite growth is possible on a finite planet. This ludicrous assumption permeates every level of economic discourse and policy-making. Institutions like the World Bank and World Trade Organization propagate this ideology without shame, fostering an environment where unsustainable practices are normalized.

The consequences of this mindset are dire. As we prioritize short-term gains over long-term sustainability, we risk depleting vital resources and exacerbating social inequalities. The relentless pursuit of growth without regard for ecological limits is leading us toward an inevitable crisis—a crisis that could have been avoided had we embraced a more holistic approach to problem-solving.

As we confront these pressing challenges, it is essential to challenge the status quo and advocate for non-linear thinking. This shift requires us to recognize the interconnectedness of systems—social, economic, environmental—and understand that solutions must be multifaceted.

By fostering an environment where diverse perspectives are valued and encouraged, we can cultivate innovative approaches to problem-solving. This means embracing complexity rather than shying away from it; it means recognizing that sometimes there are no clear answers or straightforward paths forward.

Education plays a pivotal role in shaping how future generations approach problem-solving. By moving away from rigid curricula that prioritize rote memorization toward experiential learning that encourages critical thinking and creativity, we can equip young minds with the tools they need to navigate an increasingly complex world.

Furthermore, educational institutions must serve as incubators for non-linear thinking by promoting interdisciplinary collaboration and real-world problem-solving initiatives. By breaking down silos between disciplines—such as science, art, business, and social studies—we can foster a culture of innovation that transcends traditional boundaries.

The responsibility for fostering non-linear thinking extends beyond educational institutions; it encompasses all sectors of society—from government officials to business leaders to community members. Each stakeholder must recognize their role in shaping a more sustainable future.

Policymakers should prioritize holistic approaches to governance that consider social equity alongside economic growth. Business leaders must embrace corporate social responsibility as integral to their operations rather than an afterthought. And community members should engage in dialogue with one another to share ideas and collaborate on solutions.

To truly address the challenges facing our world today, we must embrace complexity rather than fear it. This means acknowledging that solutions may not always be clear-cut or easily implemented; they may require experimentation, iteration, and collaboration across various sectors.

By fostering a culture that values non-linear thinking—one that encourages curiosity, creativity, and collaboration—we can unlock new pathways toward resilience and sustainability. We must challenge ourselves to think beyond traditional paradigms and explore innovative solutions that reflect the intricacies of our interconnected world.

This call for change is not merely an academic exercise; it is a necessity for survival in an increasingly unpredictable world. Together, let us embrace non-linear thinking as a guiding principle for navigating the complexities ahead—transforming adversity into opportunity while ensuring a sustainable future for generations to come. The time for action is now; let us rise to meet this challenge with courage and creativity!

Mycetoma awareness and healthcare challenges

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In Ethiopia, the fight against mycetoma—a neglected tropical disease that poses significant health challenges—has gained momentum, thanks in part to the efforts of dedicated professionals like Wendemagegn Enbiale. As the Dermatovenerologist at Bahir Dar University, Wendemagegn brings over 20 years of experience in health and a deep understanding of public health issues to the forefront of this critical conversation.

Mycetoma, often referred to as “Madura foot,” primarily affects rural communities engaged in agriculture and livestock herding, leading to chronic deformities and severe socio-economic burdens. In this interview, Wendemagegn discusses the urgent need for increased awareness and better diagnostic facilities for mycetoma, highlighting the barriers faced by patients seeking treatment. He shares insights on the importance of community engagement and collaboration among healthcare providers, policymakers, and researchers to develop effective strategies for addressing this pressing public health issue.

Join us as we dig into Wendemagegn Enbiale’s perspectives on mycetoma, its impact on Ethiopian society, and the collective efforts required to improve healthcare access for those affected by this debilitating condition.

Capital: How common is mycetoma in Ethiopia?

Wendemagegn Enbiale: Mycetoma is a neglected tropical disease that affects many people, especially in poor and rural areas. It has serious health and financial impacts on individuals and their families. Unfortunately, we don’t have much information about how common this disease is in Ethiopia.

To understand the situation better, a national survey was conducted in 2022. Hospital records from 13 hospitals across Ethiopia were reviewed for cases of mycetoma and similar diseases from 2015 to 2022. The results showed that mycetoma exists in almost every region of Ethiopia, but it is most common in the northern regions like Tigray and Amhara. These two regions reported over two-thirds of the cases, even though they only make up about a quarter of the country’s population.

Compared to Sudan, where over 9,600 cases were reported in 30 years, Ethiopia recorded fewer cases—143 in five years. This might mean that many cases go unreported. To find out the true scale of the problem, studies in the community are urgently needed.

Capital: What does mycetoma look like in Ethiopian patients?

Wendemagegn Enbiale: Most Ethiopian patients with mycetoma first notice a wound that doesn’t heal and grows slowly over several years. The wound can cause swelling and start oozing discharge from several spots. The foot is the most common area affected, but the disease can also appear on the hands, back, or buttocks. It can damage the skin, deeper tissues, and even bones.

A key sign of mycetoma is pus that contains grains, which might be black, white, yellow, or red. Most of the people affected are farmers who work barefoot, exposing them to infections from soil.

Capital: How do financial and social factors affect the treatment of mycetoma?

Wendemagegn Enbiale: Mycetoma mostly affects people in their working years, such as farmers, daily laborers, and wood collectors. These people often don’t have shoes or gloves to protect themselves from injuries. When the fungus enters the skin through a cut or injury, the disease spreads slowly if it isn’t treated early.

Many patients cannot afford to see a doctor or don’t live near healthcare facilities. The disease isn’t usually painful, so people often delay seeking help. However, over time, it can cause severe swelling, chronic discharge, and deformities, making it hard for patients to work. On top of that, the stigma and social isolation caused by the disease can worsen their financial and mental health problems.

Capital: What treatment is available for mycetoma in Ethiopia?

Wendemagegn Enbiale: Treating mycetoma in Ethiopia is challenging for several reasons:

  1. Limited access to diagnosis: Most dermatology services are located in cities or large regional hospitals, meaning patients have to travel long distances—sometimes hundreds of kilometers—to get a diagnosis. Even at these hospitals, specialized labs to confirm mycetoma are often unavailable.
  2. Lack of treatment options: The best medicine for fungal mycetoma is itraconazole, but it’s hard to find in Ethiopia and is expensive. Surgery, which is sometimes necessary, is also rarely done due to a lack of trained specialists.
  3. Ineffective practices: Many healthcare providers in Ethiopia use less effective medicines or don’t combine treatment with surgery. As a result, even patients who get medical care often don’t recover fully.

Capital: How do people’s beliefs and attitudes affect treatment?

Wendemagegn Enbiale: Mycetoma can be treated, especially if caught early. However, many people are not aware of the disease, so they don’t seek medical help in time. Instead, they try to treat their wounds with home remedies, which can make things worse.

It’s important for communities to understand that mycetoma does not heal on its own. Proper treatment, which can take up to a year, is essential. In severe cases, surgery may be needed to completely heal the affected area.

Capital: How can we raise awareness about mycetoma?

Wendemagegn Enbiale: Ethiopia’s Health Extension Program is a great way to educate people about mycetoma. Some effective strategies include:

  • Teaching communities about the importance of wearing shoes and getting early treatment for wounds.
  • Training health workers to recognize the signs of mycetoma and refer patients to specialists.
  • Encouraging community involvement to reduce stigma and improve awareness of the disease.

Capital: What do we need to improve our understanding and treatment of mycetoma in Ethiopia?

Wendemagegn Enbiale: There are several gaps in our knowledge and healthcare system that need to be addressed:

  1. Understanding the scale of the problem: We need to collect accurate data about how common mycetoma is in Ethiopia and where it’s most prevalent.
  2. Improving diagnosis and treatment: Hospitals and clinics need better diagnostic tools, affordable medicines, and trained healthcare providers.
  3. Developing guidelines: Ethiopia needs a clear national guide for diagnosing and treating mycetoma to ensure consistent care.
  4. Using the primary healthcare system: By integrating mycetoma care into existing primary healthcare services, we can make diagnosis and treatment more accessible, especially in rural areas.

These steps will help us tackle mycetoma more effectively and improve the lives of those affected.