Date of Award

2025

Document Type

Dissertation

Degree Name

Doctor of Business Administration (DBA)

Department

Interdisciplinary Studies

First Advisor

Dr. Tanja F. Blackstone

Abstract

This study investigates how federal tax code complexity influences small business decision-making in Alabama using a mixed-methods approach. Tax complexity is defined by ambiguity in tax provisions, frequent regulatory changes, and recordkeeping burdens, all of which affect decision-making and investment behavior. Survey data from small business owners were analyzed using Principal Component Analysis (PCA) to identify the primary dimensions of tax complexity. Regression analysis then assessed the relationship between these dimensions and business decision-making. The findings indicate that ambiguity, frequency of change, and administrative requirements are negatively associated with long-term planning and capital investment decisions. Two complementary case studies involving venture capitalists further illustrate how tax uncertainty influences due diligence, investment timing, and scalability considerations. Due to the limited geographic scope and sample size, the study is exploratory and not intended for broad generalization. However, the findings highlight patterns that warrant further investigation and suggest that simplifying tax provisions and stabilizing policy may reduce compliance burdens and support small business growth.

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