This study assessed the effects of taxation and insecurity on micro and small enterprises in Calabar metropolis. The specific objectives are to examine if tax assessment and collection in Calabar Metropolis significantly affect profitability of micro and small enterprises, determine the relationship between taxation and micro and small enterprises profitability in Calabar Metropolis and ascertain the influence of insecurity on micro and small enterprises profitability in Calabar metropolis. The study adopted survey research design, the instrument of data collection was questionnaire, and the data collected was analysed using the Chi-square technique. Findings from the analysis indicated that there is a significant relationship between tax assessment and collection and micro and small enterprises profitability in Calabar Metropolis, there is no significant impact of taxation on profitability of micro and small enterprises in Calabar Metropolis and Insecurity has an influence on profitability of micro and small enterprises in Calabar metropolis. The study recommended that government should adopt uniform tax policies that will aid development of micro and small enterprises in Calabar Metropolis and also government should adopt new tax policy that would encourage investments in micro and small enterprises, and the state government should ensure that there are adequate security measures in the state to checkmate any threats of insecurity especially in Calabar Metropolis.