The Development of the Shadow Entrepreneurship in Ukraine
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Date
2017-08-25
Authors
Markina, I. A.
HNIEDKOV, Artur
Somych, M. I.
Маркіна, Ірина Анатоліївна
Сьомич, Микола Іванович
Journal Title
Journal ISSN
Volume Title
Publisher
Espacios
Abstract
Nowadays Ukraine has the highest level of the shadow
economy in the Eastern Europe. Many entrepreneurs in
this country operate in the informal sector of the
national economy. In the given paper, the key reasons
because of which the business-owners prefer to keep
their business operations in the informal sector of the
economy have been analyzed. Due to the various global
indices, published by the world’s most respected and
trustworthy research organizations, the weaknesses of
the Ukrainian economy, affecting the “shadow” activity
of the registered enterprises, were identified. The
combination of high-level corruption and bureaucracy in
the country has led to an increase in the level of
confidence of entrepreneurs in state authorities. The
common characteristic of “shady businessmen” in
Ukraine is that the operating in the informal sector is
their conscious choice for more business
opportunities.Understanding the motivations that drive
entrepreneurs is essential to develop effective policies
to facilitate the formalization of the selected informal
businesses. The “carrot and stick” method, which is
considered to be the traditional one in Ukraine, is not
effective in terms of political instability and lack of
reform. That is why the given paper presents a complex
model of the formalization of the shadow economy in
Ukraine, which combines both direct and indirect
approaches.
Description
Markina I. Entrepreneurship in the shadow economy: The case study of Russia and Ukraine [Electronic resource] / Markina, I.A., Sharkova, A.V., Barna, M.Y. // International Journal of Entrepreneurship. – 2018 Vol: 22 Issue: 3. Access mode: https://www.abacademies.org/articles /entrepreneurship-in-the-shadow-economy-the-case-study-of-russia-and-ukraine-7457.html (Scopus).
Keywords
Shadow Economy, Transition Economy, Tax Compliance