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Entrepreneurship and Sustainability Issues Open access
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Received: 2018-11-15  |  Accepted: 2019-01-20  |  Published: 2019-03-30

Title

Social enterprises: evaluation of the impact of state support and corporate income exemptions on the state budget of Lithuania


Abstract

The increasing interest in social enterprises is related to the specifics of their business activities, which not only involve the most vulnerable part of the society, but also offer greater opportunities for the socialisation of the disadvantaged. As a rule, social enterprises may be entitled to some tax exemptions or may apply for the specific state support. Such tools help to reduce the low efficiency of social enterprises and extend possibilities for the most vulnerable part of the society to participate in the creation of the general economic value of enterprises and the country as a whole. The recent changes introduced in Lithuania reduced the level of the state support and the exemptions from corporate income tax for social enterprises under the impact of the opinion that such enterprises may misuse the status of social enterprises and, accordingly, the state support tools. Therefore, such changes raise the need to evaluate their possible influence on the state budget of Lithuania. The purpose of the research is to evaluate the impact of state support and corporate income exemptions for social enterprises, on the state budget of Lithuania. The object of the research – involves the data of income statements of social enterprises, the information on state support, the state budget of Lithuania for the period of 2013 – 2017. The research deployed the legislation analysis, the inductive and deductive methods, the methods of systematisation, comparison and summary of information. The research results show that the value of corporate income tax exemptions and state support do not have a significant impact on the state budget of Lithuania and reach around the average of 0.18% of the state budget. Nevertheless, the reduction of state support and corporate income tax exemptions may limit the possibilities of social enterprises to reinvest their profits, expand businesses and employ marginalised population.


Keywords

social enterprises, state support, corporate income tax exemptions, Lithuania


JEL classifications

M10 , D20


URI

http://jssidoi.org/jesi/article/276


DOI


Pages

1156-1171


This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Subačienė, Rasa
Vilnius University, Vilnius, Lithuania https://www.vu.lt
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Budrionytė, Ramunė
Vilnius University, Vilnius, Lithuania https://www.vu.lt
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Mačerinskienė, Aida
Vilnius University, Vilnius, Lithuania https://www.vu.lt
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Tamulevičienė, Daiva
Vilnius University, Vilnius, Lithuania https://www.vu.lt
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Journal title

Entrepreneurship and Sustainability Issues

Volume

6


Number

3


Issue date

March 2019


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 3560  |  PDF downloads: 1601

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