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Entrepreneurship And The Informal Economy: A Study Of Ukraine'S Hidden Enterprise Culture

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  • COLIN C. WILLIAMS

    (School of Management, University of Sheffield, 9 Mappin Street, Sheffield, S1 4DT, United Kingdom)

  • JOHN ROUND

    (Department of Geography, University of Leicester, University Road, Leicester, LE1 7RH, United Kingdom)

Abstract

How many entrepreneurs start-up their business ventures conducting some or all of their trade in the informal economy? The aim of this paper is to answer this key question that has been seldom addressed using data from 600 face-to-face structured interviews conducted in Ukraine in late 2005 and early 2006. Analyzing the 331 entrepreneurs identified (i.e., individuals starting-up an enterprise in the past three years), just 10 percent operate on a wholly legitimate basis, while 39 percent have a license to trade and/or have registered their business but conduct a portion of their trade in the informal economy, and 51 percent operate unregistered enterprises and conduct all of their trade on an off-the-books basis. Given that some 90 percent of all business start-ups operate partially or wholly in the informal economy, and that 40 percent of all respondents depend on the informal economy as either their principal or secondary contributor to their livelihoods, the paper concludes by considering the wider implications of these findings both for further research and public policy.

Suggested Citation

  • Colin C. Williams & John Round, 2007. "Entrepreneurship And The Informal Economy: A Study Of Ukraine'S Hidden Enterprise Culture," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 12(01), pages 119-136.
    • Handle: RePEc:wsi:jdexxx:v:12:y:2007:i:01:n:s1084946707000587
    DOI: 10.1142/S1084946707000587
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    References listed on IDEAS

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    1. Chernyshev, Igor., 2006. "Socio-economic security and decent work in Ukraine : a comparative view and statistical findings," ILO Working Papers 993870323402676, International Labour Organization.
    2. repec:ilo:ilowps:387032 is not listed on IDEAS
    3. Colin C. Williams, 2006. "The Hidden Enterprise Culture," Books, Edward Elgar Publishing, number 3948.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Aziz N. Berdiev & James W. Saunoris, 2018. "Corruption and Entrepreneurship: Cross‐Country Evidence from Formal and Informal Sectors," Southern Economic Journal, John Wiley & Sons, vol. 84(3), pages 831-848, January.
    2. Halil Dincer Kaya, 2017. "The Characteristics Of Small Firms That Serve As Owners’ Primary Employment," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 5-13, February.
    3. Colin C. Williams, 2023. "A Modern Guide to the Informal Economy," Books, Edward Elgar Publishing, number 18668.
    4. Daniil A. Sitkevich, 2022. "Shadow economy: To legalise or to tolerate?," Journal of New Economy, Ural State University of Economics, vol. 23(3), pages 6-22, October.
    5. Castrillón, C. & Gómez, W & Montoya, J., 2021. "Revisión de la modelación macroeconómica de la informalidad," Documentos de trabajo - Alianza EFI 20040, Alianza EFI.
    6. Esther Salvi & Frank-Martin Belz & Sophie Bacq, 2023. "Informal Entrepreneurship: An Integrative Review and Future Research Agenda," Entrepreneurship Theory and Practice, , vol. 47(2), pages 265-303, March.
    7. Aziz N. Berdiev & James W. Saunoris, 2020. "Cross‐Country Evidence Of Corruption Spillovers To Formal And Informal Entrepreneurship," Contemporary Economic Policy, Western Economic Association International, vol. 38(1), pages 48-66, January.
    8. Eijaz Ahmed Khan, 2018. "The Voice Of Informal Entrepreneurs: Resources And Capabilities Perspective," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 23(03), pages 1-19, September.
    9. Gengzhi Huang & Bowei Cai & Shuyi Liu & Desheng Xue, 2024. "Analysing the heterogeneity in working conditions of migrant informal workers in China: a test of the WIEGO model of informal employment," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    10. Eijaz Ahmed Khan & Lynne Harris & Mohammed Quaddus, 2021. "The mediating role of personality traits on the entrepreneurial orientation–firm performance relationship: informal entrepreneurship context," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 41-52, December.

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