REGULATION, TAXATION AND ENTREPRENEURSHIP: AN ASSESSMENT OF CORPORATE PROFITABILITY IN EMERGING ECONOMIES

Abstract

This study analyzes the interaction between regulations, taxation, and entrepreneurship, evaluating their effects on business profitability in emerging economies. A documentary review and comparative analysis of international reports and recent academic literature (2020–2025) was applied. The results show that regulatory complexity, effective tax burdens, and compliance costs have a significant impact on the profitability and survival of micro, small, and medium-sized enterprises (MSMEs). It is concluded that clear regulation, tax simplification and the digitalization of tax processes favor business formalization and competitiveness.