Shadow entrepreneurship in Russia: causes and consequences
Abstract
Subject. The sustainable development of the Russian economy is hindered by the widespread shadow economy, which affects all economic processes. In the national economy, the concept of shadow (hidden) entrepreneurship is closely related to the shadowing of the economic activities of business entities. Therefore, it is important to study in detail the cause-and-effect relationships between shadow entrepreneurship and the prospects for economic development under current conditions in Russia.
Objectives. The article is aimed at studying the essence, causes, and consequences of shadow entrepreneurship in Russia. To achieve this goal, the following main research objectives were consistently solved during the study: considering the theoretical aspects of shadow entrepreneurship and its functioning, its basic characteristics and types, determining the main causes and consequences of the development of shadow entrepreneurship in Russia, and determining the priority areas for the systemic unshadowing of entrepreneurship in Russia.
Methodology. The research methodology mainly includes general scientific research methods: methods of analysing scientific literature, inductive and deductive methods, methods of scientific generalisation, and methods of modelling that were used to develop the priority areas for the systemic unshadowing of entrepreneurship in Russia.
Conclusions. The conclusion was made about the causes and consequences of the increase in shadow entrepreneurship. Priority measures to reduce the level of the shadow sector of the economy were identified. It was substantiated that to ensure the systemic unshadowing of entrepreneurship in Russia it is important to create a favourable business environment. The groups of measures proposed in the study allow distributing the regulatory impact with the greatest benefit for the development of the national economy. The general logic of such differentiation of measures to regulate shadow economic activity is to counteract illegal activities and to stimulate the creation of a favourable institutional environment for legal businesses. This will encourage entrepreneurs to conduct legal activities by creating effective incentives and benefits from such activities as compared to hidden and informal activities.
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