This study investigated the effect of taxation and insecurity on micro and small enterprises in Calabar South Local Government Area of Cross River State. The specific objectives were to examine if taxation has significantly affect micro and small enterprises performance in Calabar South Local Government Area of Cross River State and to ascertain if insecurity has a significant effect on profitability of micro and small enterprises in Calabar South Local Government Area of Cross River State. The study adopted the
survey design, and population of the study were 220 randomly selected micro and small enterprises in Calabar South Local Government Area. The instrument of data collection was the questionnaire and the data collected was analyzed using the chi-square technique. From the chi-square result, it was indicated that there is no significant effect of taxation on the performance of micro and small enterprises in Calabar South and insecurity has a significant effect on the profitability of micro and small enterprises in Calabar South Local Government Area of Cross River State. Based on findings, it was recommended that government should come up with uniform tax policies that will aid development of micro and small scale businesses in Calabar South Local Government Area. Also, in order to obtain a vibrant and flourishing
micro and small scale business sector, the tax policy needs to be appropriate such that it will neither be a burden to the micro and small scale businesses nor discourage voluntary compliance. Government should evolve a tax policy that would encourage investments in small scale businesses. Furthermore, the
government should ensure that corrupt tax officials who carry out tax assessment and collection are replaced so as to avoid imposition of multiple taxes on small scale businesses. Finally, government should continue to provide heavy security in Calabar South Local Government Area to help reduce the problem of insecurity in the area.