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Informal entrepreneurship under transition: causes and specific features

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Soziologie des Wirtschaftlichen

Abstract

Informal entrepreneurial activity has many specific points. Firstly, by conducting at least part of their business informally, entrepreneurs are minimizing some transactional costs but are less protected by formal frames and regulations, thus they are acting in a more fragile context. Secondly, their employees – if there are any – are excluded from several forms of healthcare and pensions protection; usually they are ‘poor’ jobs. Thirdly, informal activities diminish their chances to obtain finance from formal sources, hence, affecting the ability to expand. Fourthly, there are several implications for economic cultures and moral values when informal activities become a major part of business.

The present paper is a part of the project launched in 2013 by the Lab on entrepreneurship research of the National research university Higher School of Economics (Moscow) funded by the Centre of Fundamental Research of the university. A preliminary version of this paper was presented at the ‘Rencóntres de St.Gall’ in September 2012. I am very grateful for comments and critique, especially by Sara Carter, Dieter Boegenhold and John Round. However, all possible failures and shortcuts are my own.

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  1. Moskau, Russland

    Dr. Alexander Chepurenko

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  1. Institut für Soziologie, Alpen-Adria-Universität Klagenfurt, Klagenfurt, Austria

    Dieter Bögenhold

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Chepurenko, A. (2014). Informal entrepreneurship under transition: causes and specific features. In: Bögenhold, D. (eds) Soziologie des Wirtschaftlichen. Springer VS, Wiesbaden. https://doi.org/10.1007/978-3-658-03545-7_14

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