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Destructive Entrepreneurship: The Cost of the Mafia for the Legal Economy

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  • Clotilde Champeyrache

    (LED - Laboratoire d'Economie Dionysien - UP8 - Université Paris 8 Vincennes-Saint-Denis)

Abstract

This article focuses on the infiltration of legitimate businesses by the mafia and on the existence of “legal mafia-owned enterprises” (i.e., legal, declared enterprises owned — directly or indirectly — by mafiosi). Crime economics often limits itself to the destructive aspects stemming from merely illegal activities. Mafia investments in the legal economy and mafia entrepreneurship are also an underestimated source of latent conflict that is costly to the economy and society. This article shows that mafia-owned legal enterprises establish a lasting, unproductive, and even destructive entrepreneurship. The mafia strives to create an artificial scarcity that affects only its non-members, and thus the mafia manages to dominate markets and other entrepreneurs. The mafia then turns from its initial appropriative functions into a rule-producing function in order to shape markets. More specifically, the mafia asserts itself as a competing sovereign thanks to its power to withhold resources obtained through property over productive entities.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Clotilde Champeyrache, 2018. "Destructive Entrepreneurship: The Cost of the Mafia for the Legal Economy," Post-Print hal-04260222, HAL.
    • Handle: RePEc:hal:journl:hal-04260222
    DOI: 10.1080/00213624.2018.1430947
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    Cited by:

    1. Djula Borozan & Josip Arneric & Ilija Coric, 2017. "A comparative study of net entrepreneurial productivity in developed and post-transition economies," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 855-880, September.
    2. Guilherme Fowler A. Monteiro & Bruno Varella Miranda, 2023. "Disentangling the role of the institutional environment in the ownership competence framework: A comment on Foss et al. (2021)," Strategic Management Journal, Wiley Blackwell, vol. 44(8), pages 1939-1954, August.
    3. Simon C. Parker, 2024. "Democracy, corruption, and endogenous entrepreneurship policy," Public Choice, Springer, vol. 198(3), pages 361-376, March.
    4. David J. Scheaf & Matthew S. Wood, 2022. "Entrepreneurial Fraud: A Multidisciplinary Review and Synthesized Framework," Entrepreneurship Theory and Practice, , vol. 46(3), pages 607-642, May.
    5. Samuel Wai Johnson, 2021. "Determinants of Access to Credit: Evidence from a Fragile Conflict-Affected Setting," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(6), pages 1475-1492, December.

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