Theoretical framework

Fiscal, organizational and economic constraints in the entrepreneurship of people with disabilities

In the study of the entrepreneurial context, the analysis of economic aspects is essential, since they are conditioning elements of entrepreneurship. The tax systems of the countries tend to incorporate tax benefits in consideration of the additional expenses that a person with a disability can have to lead a normal life (^{Seto & Buhai, 2004}), such as a higher consumption of medicines or the needs of adaptability of the habitual residence, examples considered by the current tax systems.

In the Spanish tax system, tax benefits are articulated in the state taxes (^{Portillo, 2014}; ^{Ruiz de Velasco, 2017}), regional and local taxes (^{Colao, 2014}), in the form of reductions in the tax base and deductions from the tax (in acquisition before 2013 of the habitual residence by persons with disabilities for their adaptation, to name some example).

Besides, special rules are regulated to favor the protected heritage of people with disabilities, with tax reductions in the income tax of natural persons (ITNP) (Del ^{Águila, 2016}) in favor of those people who make the contributions to the mentioned patrimonies.

Also in the corporate tax (CT), a deduction is regulated in job creation for workers with disabilities to a degree equal to or greater than 33 %, when they are hired in the tax period and involve an increase in the average number of workers of the same nature.

On the other hand, in the autonomic taxes, the disability is considered primarily in the tax on inheritances and donations and in some local taxes (such as the tax on buildings, installations and works or the tax on mechanical traction vehicles, to name a few of them), also includes exemptions, deductions or bonuses that consider the unusual situation in which the person with disabilities can be found.

From a tax perspective, it also incorporates a series of rules that contemplate the fact of undertaking and the difficulties that arise through the creation of various deductions that support entrepreneurship.

However, the entrepreneurship of the person with disabilities as such does not enjoy a unique situation that incorporates both qualities for the establishment of a specific tax incentive, although it is possible to apply disability benefits and entrepreneurship simultaneously, so, indirectly, this second circumstance is being favored.

Beyond the taxation that may condition the decision, in general, the economic factors have a more direct influence on the entrepreneurial activity (^{Martin, Guillemette & Urgel, 2018}; ^{Simpson & Stevens, 2016}), becoming the obstacle more obvious when deciding to start an activity of this type.

In particular, in people with some disability, this aspect can become not only an obstacle insofar as there may be certain economic sectors in which the additional cost of starting an entrepreneurial activity is excessively high for a person with a disability.

This fact, together with a need for financing, on many occasions, exceeds that of entrepreneurs without disabilities, associated with the different measures that must be addressed in some cases to overcome the competitive disadvantage caused by their disability in a highly competitive environment. They point out the two main economic aspects that most influence the entrepreneurial activity of people with disabilities.

Another issue related to economic factors, insofar as it can involve a more significant economic outlay, is the organizational form chosen by these people to start their business, and the greater personnel needs or organizational adjustment they may need to overcome the limitations of his disability.

Given this situation, after achieving a qualitative analysis, a series of results has been obtained. To discharge this analysis, the methodology that has been used is explained below.

Results obtained: taxation and economic-organizational context

The analysis of the economic, organizational and fiscal aspects is critical in any entrepreneurial process, and even more so in being addressed by a disabled person (^{Meyer & Mok, 2018}).

It is imperative to identify the limitations encountered by people with disabilities in order to carry out their entrepreneurial activities and thus be able to favor entrepreneurship in this group with more significant difficulties in accessing the labor world (Organization for Economic Cooperation and Development ^{OECD, (2010)}.

Next, it identifies the fiscal and economic-organizational problems encountered by people with disabilities to undertake.

Tax aspects

When the economic aspects are addressed, in the speeches of the interviewees, issues related to taxation that are considered of interest by the respondents appear.

These aspects are related to the legal form, bureaucracy, regulations, taxation, advice and, very unusually, to the privileges or benefits recognized to people with disabilities.

The respondents recognize these incentives and represent help; however, it seems that it would be necessary to increase them:

Taxation seems to be that sometimes the State gives a series of privileges to people with disabilities and that can help them a lot, but I think it is not enough due to the little development that there is in the State to this sector of people with disabilities. (I.1)

One of the issues that arise is the existing vacuum in terms of the taxation of the entrepreneur with a disability since the tax regulations do not consider the fact of being an entrepreneur and with a disability as a differential element for the establishment of an exemption, reduction or deduction in the main tributes.

However, the non-existence of these regulations is not always an element to consider for the disabled entrepreneur. In some cases:

Nor do I think there is much difference between how vital an entrepreneur is for financing and taxation for an entrepreneur who is not disabled and one who is not. I do not think that influences too much, I do not know, except in which you have physical, sensory limitations, which do not allow you to do everything, it would be for the only thing. (I.9)

However, in some cases, it is considered that there are benefits related to taxation for the disabled entrepreneur, and when referring to these, it usually refers to the social security contribution bonus for the self-employed worker with a disability. A positive element to take into account at the time of undertaking:

The issue of taxation, then, in the last reforms of social security did take into account the modification of social insurance any extension when an entrepreneur is a person with disabilities, which had not been taken into account until now because it was not thought that entrepreneurs could be people with disabilities. (I.5)

However, the performing of an economic activity entails certain fixed costs, such as the payment of the social security contribution of the self-employed worker and, therefore, this expenditure is considered to condition the entrepreneurial activity, for which specific changes are proposed:

That the self-employed person could be paid according to what they invoiced. (I.9)

Conditions a little softer, that's why I told you, because physically or sensory you are limited and I can not catch and say that if I go wrong billing I go to a drinks bar to put drinks and take out a money (...) I can not do that, maybe a little bit or the softer financing. (I.9)

This would be related to a greater rigidity or fiscal flexibility (understood this expression in a broad sense, and including in its scope the social contributions) at the time of undertaking that could help improve business profitability.

In this situation, the fact of starting the activity and facing the payment of taxes is a matter of concern:

If you do not start earning money when that minor taxation ends, in the end, let us say that it does not give the results that one considers (...) You need financing, and you need time. When the company starts to get benefits that are charged to you, then you start paying. However, here we do not take temporality into account; we do not take into account that the company starts to have benefits, no, it takes into account some margins that often are not enough. (I.14)

To initiate the activity and be able to continue it, it is necessary the advice from the professionals to accomplish the necessary procedures for the realization of the activity. Both in what refers to the beginning and concerning the continuity in the development of the business and to obtain, in this sense, support is a subject that is considered of interest:

You always let yourself be advised, take these by a labor or tax advisor, but if you find support on that side, it would be very good, indispensable. (I.11)

In this context, and related to all this, the bureaucracy necessary to set up a business is considered an essential impediment to the start of the activity that should have more facilities according to the interviewees:

The bureaucratic issue is the one that puts the most obstacles when I talk to people who want to set up a business around me. (I.12)

Other aspects of interest are related to the legal form under which the activity is executed, autonomous worker, limited company, cooperative, and the fiscal implications that this may have in terms of rigidity or flexibility and the tax treatment that follows.

This question refers, mainly, to the need to pay taxes or social contributions, in any case. In this sense, the possibility of establishing conditions that could favor entrepreneurship to a greater extent is considered:

I insist, the need to help us and not only on the subject of self-employed (I had an error, and I am not paying), that you could look and pay depending on the invoiced. Why, because I am constrained professionally speaking, I can not catch and say good, because I do not have it easy to say because I am not billing, but I do an extra job, or I look for something else in the morning. (I.9)

The need to consider the improvement of the taxation of the person with a disability is present, directly or indirectly, in the analysis of the speech made, with some proposals in this sense:

The issue of taxation that takes into (...) account just as you have in the rent, that a person with a disability has more expenses and for that reason, there are some benefits at the time of (...) that if it could. (I.7)

In essence, the aspects related to the start of the activity, the need for advice and the lack of specific taxation of the entrepreneur with disability are considered as issues that need to be addressed when dealing with entrepreneurship.

However, questions regarding the choice of the legal form of the company or the need for a professional who provides adequate advice are inherent to the fact of starting an economic activity and are familiar to entrepreneurs with disabilities and without it.

Thus, the request for specific advice for people with disabilities, through the establishment of appropriate aid or explicit taxation, are elements that should be addressed in a framework for improving the current situation.

Economic aspects

The main economic issues highlighted by the respondents as the main barriers to entrepreneurship are related to the economic sector and financing.

Economic sector

Entrepreneurship among people with disabilities is seen, in general terms, as an undertaking by necessity rather than an opportunity, to obtain a source of income that may be more difficult to obtain as a worker, given the higher difficulty of access to the working world of people with disabilities.

With a disability, it is challenging for them to join the regular working world while setting up a cooperative company with colleagues, friends or family where the tasks are distributed can provide a source of income. (I.4)

This does not mean that access to entrepreneurship is substantially different from that of people without disabilities, although many economic factors are especially relevant for these people compared to other types of entrepreneurs.

The main economic factors identified by the interviewees coincide in most cases with those generally accepted for the enterprise, such as the difficult access to financial resources and the viability and profitability of the project.

However, two elements that are more important for entrepreneurs with disabilities are noteworthy by the interviewees: the economic sector and the necessary skills.

Thus, to ensure the success of the activity, especially in disability, it is necessary to evaluate the economic sector in which the activity begins:

I would first place the economic sector, what to do, where to move. (I.4)

As determining factors in the economic sector where you are going to start or create your business. (I.13)

Like any other entrepreneur, it is necessary to know the needs of the sector and its weaknesses and limitations, in such a way that guarantees the sustainability of the activity initiated. In this aspect, it is crucial to be realistic with the disability and the limitation that this implies according to which sector, or even with the advantage that this could imply:

There are sectors of the economy that require a particular physical effort; they can be construction or industry. (I.4)

I think there are professional profiles that can be made more effectively and much easier for people with an individual disability because of its peculiarity and its characteristics. (I.4)

Deaf people are especially appropriate for IT issues because as they do not hear they concentrate very well. (I.5)

However, ultimately, a physical limitation is not an obstacle that can not be saved by forming an appropriate work team:

I believe that the barriers are those of whether or not you know the business model you want to undertake. (I.6)

I had that disability, and I tried to have a manager to replace that disability. (I.2)

They seek the support of other people to set up cooperatives, joint-stock companies or this type of thing. (I.2)

For example, I can not see the plans, and the engineer, then, sees the plans and explains how they are to be able to work out the budget together. (I.8)

Even with a necessary adaptation to the functions and demands of the position to be fulfilled:

The entrepreneurship of people with physical and sensory disabilities is the most straightforward approach, which is enough with supports and elements that are complementary to work and, above all, to adapt the work to the person's training. (I.10)

And how are you going to sell magazines if you see little, and how are you going to sign the product that comes in and the one that comes out, how are you going to use that gun and the computer tool (...) because the boy works phenomenally, with a telephoto, he has adapted to his job. (I.7)

Thus, the interviewed entrepreneurs consider the limitations inherent to the disability condition to a certain extent the choice of the sector in which to start and develop the activity.

For this reason, it is especially necessary for the correct analysis of the environment, the adequate choice of a work team or the adaptation to the demands of the job.

The question is to have a good business idea and be able to carry it out. We have been thinking about many businesses in the head, but they have nothing to do with disability or not with my disability for others. (I.8)

Financing

Funding is considered an essential aspect of support for entrepreneurship, although not necessarily linked to disability.

As the main determining factor, I see the financial, because it depends on the type of financing, which is where entrepreneurship starts from once I have the business idea. (I.12)

In this sense, some think that disability is not an obstacle to obtaining financing:

The financing of the project will determine the viability of this and not that the entrepreneur has any disability or another. It is the attitude that will allow, regardless of whether you have a disability or not, who can access this type of financing. (I.6)

Nor do I think there is much difference between how vital an entrepreneur is for financing and for one who is not disabled, I do not think that influences too much, I do not know, unless you have your physical, sensory limitations they do not allow you to do everything, it would be the only thing. (I.9)

While others claim that this issue conditions the funding obtained:

You have to resort to external financing, and it depends on the disability because financial entities value this type of issue. (I.2)

So they give you a loan? For me to have the loan repayment insurance, I have only found one company, the rest of them make me complain, they even wanted me to declare that the disability was acquired, not congenital. (I.7)

Other aspects that are closely linked to financing and that are fundamental in supporting entrepreneurship are the fiscal aspects, as will be analyzed below:

Well, mainly the financing and taxation, which is linked, because there is good financial support, but you control a lot on the other. (...) Many undertakings go to waste because there is not enough waiting time to that the company begins to give benefits. They begin to charge before, with which the debt grows. (I.14)

In this sense, it is necessary to emphasize that entrepreneurs with disabilities also have more significant limitations to move from one business to another. If undertaking, as an activity in itself, may not have many more obstacles for people with disabilities than for those who are not, there is a definite disadvantage in the exit barriers of a sector for some people with disabilities, which should be taken into account when it comes to financial aid or even tax.

I am very professionally limited, I can not pick up and say I do an extra job or I look for something else in the morning or change business when I am not billing. (I.9)

Organizational aspects

The organizational aspects of the business of an entrepreneur with a disability frequently present characteristics that make it significantly different from others, and that condition from the legal form adopted to the size of the organization.

The primary organizational factors that are relevant for these entrepreneurs are fiscal rigidity or flexibility, the legal form, the nature or size of the company and the type of economic activity. These include the economic sector, as it was seen in the previous section, and the legal form or size of the company.

One of the first issues that an entrepreneur must address when starting his activity is the organization of resources and functions. This requires deciding on the most appropriate legal form, and which best fits the needs and objectives of the activity that starts.

In this sense, it is common to find collaborative legal formulas in the entrepreneurship of people with disabilities, since they allow to create a work team that compensates the entrepreneur's disability:

They alone can not carry out all the business activity, so they seek to support or conjunction with other people to set up cooperatives, joint-stock companies or similar ways where the tasks that can be done by each one are distributed. (I.2)

This may involve the option of formulas such as cooperatives, with a specific financial regulation that favors them, which can be a special incentive for the creation of these.

Another very relevant issue is that many of the entrepreneurs with disabilities are in charge of family businesses. Although the Spanish business is mostly made up of family SMEs, the fact that it is considered a more common professional outlet for people with disabilities is the possibility of continuing with the family business:

The cases of entrepreneurs with disabilities that I had the opportunity to meet have been closely linked to a family business culture, and they say they want to continue with the family business. (I.7)

Also noteworthy is the fact that due to their characteristics they are at the head of small companies since the tax burden is lower:

Small companies, entrepreneurs with disabilities, who can access small-volume activities. So their taxation is much lower because there are many more possibilities to start companies where the weight of taxation is lower. (I.7)