Determining the Causes for Existence of Illegal (Shadow) Entrepreneurship
Journal Title: Бізнес Інформ - Year 2015, Vol 7, Issue 0
Abstract
The article is aimed to identify the significant causes for the illegal-type (shadow) entrepreneurship. This problem is relevant against the background of the provided as in scientific literature so in the public policy documents, dozens of different factors for establishing shadow economy, thus, without an appropriate scientific substantiation for their influence. The article is aimed at unificating and determining the factors with a significant influence. Using the method of analysis and synthesis, 18 factors of illegal entrepreneurship has been allocated. Further on, 12 of them has been selected, the influence of which can be estimated through statistics or international ratings. Using the correlation-regression modeling, factors that have a significant impact on the scale of illegal entrepreneurship has been determined. Results of the study will be used to generate a system of measures for State regulation of the process of entrepreneurship legalization, aimed at solving the problems identified, which in practice will ensure a reduction in the share of illegal sector and decrease the resource costs to overcome minor factors. As result of the study, the approaches to determine causes of shadow economy developments has been improved, which, unlike the existing ones, allow to determine the factors with a significant correlating effect, that means, high performance of the related programs as well as mechanism for entrepreneurship legalization can be provided.
Authors and Affiliations
Vitali Gumenyuk
Keywords
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