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

Related Articles

System of Enterprise Reputation Management

The article offers a system of enterprise reputation management directed at increase of economic benefits from formation and maintenance of high reputation in the result of maximisation of the volume of the incoming cash...

Managing Corporate Social Responsibility in Foreign Markets

The growth of a number of enterprises that carry out foreign economic activity and availability of social problems that need immediate solution resulted in a necessity to attract business to the principles of corporate s...

Methods to Improve Implementation of Innovative Projects

In the article the promote technique of innovative projects from inception to production ideas serial production is discussed. The author shows the advantage of project management as a tool to enhance the innovation acti...

Investment Attractiveness of the Regions of Ukraine as an External Factor of Strategic Management Competitiveness of the Enterprise

Analysis of investment attractiveness for regions of Ukraine has been carried out, problems have been pointed out and conditions for spurring investment activity taking into account subdivision of the regions according t...

Innovations in Tourism as a Factor of Stimulation of Development of Small and Medium Business

The article studies directions of stimulation of development of small and medium business in the sphere of tourism. It reveals barriers that interfere with development of the subjects of small and medium entrepreneurship...

Download PDF file
  • EP ID EP132729
  • DOI -
  • Views 106
  • Downloads 0

How To Cite

Vitali Gumenyuk (2015). Determining the Causes for Existence of Illegal (Shadow) Entrepreneurship. Бізнес Інформ, 7(0), 160-165. https://www.europub.co.uk/articles/-A-132729