Skip to main content
SpringerLink
Log in

Explaining participation in off-the-books entrepreneurship in Ukraine: a gendered evaluation

  • Published:
International Entrepreneurship and Management Journal Aims and scope Submit manuscript

Abstract

Despite the growing recognition that many entrepreneurs conduct some or all of their trade off-the-books, few have evaluated whether there are variations in the rationales of men and women engaging in this shadow enterprise culture. Reporting face-to-face interviews with 331 entrepreneurs in Ukraine during 2005–06, of whom 90 per cent operated partially or wholly off-the-books, the finding is that women are largely ‘reluctant’ entrepreneurs and men more commonly chiefly ‘willing’ entrepreneurs, although both motives are normally co-present to differing degrees in entrepreneurs’ explanations and their relative importance changes over time. The paper concludes by discussing the implications for both further research and public policy.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Aidis, R., Welter, F., Smallbone, D., & Isakova, N. (2007). Female entrepreneurship in transition economies: the case of Lithuania and Ukraine. Feminist Economics, 13(2), 157–183.

    Article  Google Scholar 

  • Amin, A., Cameron, A., & Hudson, R. (2002). Placing the social economy. London: Routledge.

    Google Scholar 

  • Bender, D. E. (2004). Sweated work, weak bodies: Anti-sweatshop campaigns and languages of labor. New Brunswick: Rutgers University Press.

    Google Scholar 

  • Bosma, N., & Harding, R. (2007). Global entrepreneurship monitor: GEM 2006 results. London: London Business School.

    Google Scholar 

  • Browne, K. E. (2004). Creole economics: Caribbean cunning under the French flag. Austin: University of Texas.

    Google Scholar 

  • Burns, P. (2001). Entrepreneurship and Small Business. Basingstoke: Palgrave.

    Google Scholar 

  • Cannon, T. (1991). Enterprise: Creation, development and growth. Oxford: Butterworth-Heinemann.

    Google Scholar 

  • Castells, M., & Portes, A. (1989). World underneath: The origins, dynamics and effects of the informal economy. In A. Portes, M. Castells & L. A. Benton (Eds.), The informal economy: Studies in advanced and less developing countries. Baltimore: John Hopkins University Press.

    Google Scholar 

  • Cherneyshev, I. (2006). Socio-economic activity and decent work in Ukraine: A comparative view and statistical findings. Working Paper no. 76. Geneva: ILO.

  • Cross, J. C. (1997). Entrepreneurship and exploitation: measuring independence and dependence in the informal economy. International Journal of Sociology and Social Policy, 17(3/4), 37–63.

    Article  Google Scholar 

  • Cross, J. C. (2000). Street vendors, modernity and postmodernity: conflict and compromise in the global economy. International Journal of Sociology and Social Policy, 20(1), 29–51.

    Article  Google Scholar 

  • Cross, J., & Morales, A. (2007). Introduction: Locating street markets in the modern/postmodern world. In J. Cross & A. Morales (Eds.), Street entrepreneurs: People, place and politics in local and global perspective (pp. 1–21). London: Routledge.

    Google Scholar 

  • Davis, M. (2006). Planet of slums. London: Verso.

    Google Scholar 

  • De Soto, H. (1989). The other path: The economic answer to terrorism. London: Harper and Row.

    Google Scholar 

  • De Soto, H. (2001). The mystery of capital: Why capitalism triumphs in the West and fails everywhere else. London: Black Swan.

    Google Scholar 

  • Dzvinka, R. (2002). How does the unofficial economy interact with the official one? Kiev: Economics Education and Research Consortium MA thesis, National University of Kyiv-Mohyla Academy.

    Google Scholar 

  • Espenshade, J. (2004). Monitoring sweatshops: Workers, consumers and the global apparel industry. Philadelphia: Temple University Press.

    Google Scholar 

  • European Commission. (1998). Communication of the Commission on Undeclared Work, http://europa.eu.int/comm/employment_social/empl_esf/docs/com98-219_en.pdf, Accessed 8 October 2008.

  • European Commission. (2007). Stepping up the fight against undeclared work. Brussels: European Commission.

    Google Scholar 

  • Evans, M., Syrett, S., & Williams, C. C. (2006). The informal economy and deprived neighbourhoods: A systematic review. London: Department of Communities and Local Government.

    Google Scholar 

  • Franks, J. R. (1994). Macroeconomic policy and the informal economy. In C. A. Rakowski (Ed.), Contrapunto: The informal sector debate in Latin America (pp. 91–112). New York: State University of New York Press.

    Google Scholar 

  • Gallin, D. (2001). Propositions on trade unions and informal employment in time of globalization. Antipode, 19(4), 531–549.

    Article  Google Scholar 

  • Gerxhani, K. (2004). The informal sector in developed and less developed countries: a literature survey. Public Choice, 120, 267–300.

    Article  Google Scholar 

  • Grabiner, L. (2000). The informal economy. London: HM Treasury.

    Google Scholar 

  • Hapke, L. (2004). Sweatshop: The history of an American idea. New Brunswick: Rutgers University Press.

    Google Scholar 

  • Harding, R. (2003). Global entrepreneurship monitor business start-up activity. London: London Business School.

    Google Scholar 

  • Harding, R., Brooksbank, D., Hart, M., Jones-Evans, D., Levie, J., O’Reilly, J., et al. (2006). Global entrepreneurship monitor United Kingdom 2005. London: London Business School.

    Google Scholar 

  • Hasseldine, J., & Li, Z. (1999). More tax evasion research required in new millennium. Crime, Law and Social Change, 31(1), 91–104.

    Article  Google Scholar 

  • Hudson, R. (2005). Economic geographies: Circuits, flows and spaces. London: Sage.

    Google Scholar 

  • International Labour Office. (2002a). Decent work and the informal economy. Geneva: International Labour Office.

    Google Scholar 

  • International Labour Office. (2002b). Women and men in the informal economy: A statistical picture. Geneva: International Labour Office.

    Google Scholar 

  • Jensen, L., Cornwell, G. T., & Findeis, J. L. (1995). Informal work in nonmetropolitan Pennsylvania. Rural Sociology, 60(1), 91–107.

    Google Scholar 

  • Jones, C., & Spicer, A. (2005). The sublime object of entrepreneurship. Organization, 12(2), 223–246.

    Article  Google Scholar 

  • Katungi, D., Neale, E., & Barbour, A. (2006). People in low-paid informal work: Need not greed. York: Rowntree.

    Google Scholar 

  • Kitchin, R., & Tate, N. (2001). Conducting research in human geography: Theory, practice and methodology. London: Prentice Hall.

    Google Scholar 

  • Lazaridis, G. & Koumandraki, M. (2003). Survival ethnic entreprneurs in Greece: a mosaic of informal and formal business activities. Sociological Research Online, http://www.socresonline.org.uk/8/2/lazaridis.html. Accessed 17 October 2008).

  • Leonard, M. (1994). Informal economic activity in Belfast. Aldershot: Avebury.

    Google Scholar 

  • Llanes, M., & Barbour, A. (2007). Self-employed and micro-entrepreneurs: Informal trading and the journey towards formalisation. London: Community Links.

    Google Scholar 

  • Lozano, B. (1989). The invisible workforce: Transforming American business with outside and home-based workers. New York: The Free.

    Google Scholar 

  • MacDonald, R. (1994). Fiddly jobs, undeclared working and the something for nothing society. Work, Employment and Society, 8(4), 507–530.

    Google Scholar 

  • Maloney, W. F. (2004). Informality revisited. World Development, 32(7), 1159–1178.

    Article  Google Scholar 

  • Marcelli, E. A., Pastor, M., & Joassart, P. M. (1999). Estimating the effects of informal economic activity: evidence from Los Angeles County. Journal of Economic Issues, 33(3), 579–607.

    Google Scholar 

  • Maritz, A. (2004). New Zealand necessity entrepreneurs. International Journal of Entrepreneurship and Small Business, 1, 255–264.

    Article  Google Scholar 

  • Minc, A. (1980). Le chômage et l’économie souterraine. Le Debat, 2, 3–14.

    Google Scholar 

  • Minniti, M., Bygrave, W., & Autio, E. (2006). Global entrepreneurship monitor: 2005 executive report. London: London Business School.

    Google Scholar 

  • OECD. (2000a). Reducing the risk of policy failure: Challenges for regulatory compliance. Paris: OECD.

    Google Scholar 

  • OECD. (2000b). Tax avoidance and evasion. Paris: OECD.

    Google Scholar 

  • OECD. (2002). Measuring the non-observed economy. Paris: OECD.

    Google Scholar 

  • Pahl, R. E. (1984). Divisions of labour. Oxford: Blackwell.

    Google Scholar 

  • Perry, G. E., & Maloney, W. F. (2007). Overview: Informality—exit and exclusion. In G. E. Perry, W. F. Maloney, O. S. Arias, P. Fajnzylber, A. D. Mason & J. Saavedra-Chanduvi (Eds.), Informality: Exit and exclusion (pp. 1–20). Washington DC: World Bank.

    Google Scholar 

  • Perunović, Z. (2005). Introducing opportunity-based entrepreneurship in a transition economy, Policy Brief 39. Michigan: The William Davidson Institute, University of Michigan.

    Google Scholar 

  • Portes, A. (1994). The informal economy and its paradoxes. In N. J. Smelser & R. Swedberg (Eds.), The handbook of economic sociology (pp. 119–134). Princeton: Princeton University Press.

    Google Scholar 

  • Rakowski, C. (1994). The informal sector debate, part II: 1984–1993. In C. A. Rakowski (Ed.), Contrapunto: The informal sector debate in Latin America (pp. 31–50). New York: State University of New York Press.

    Google Scholar 

  • Renooy, P. (1990). The informal economy: Meaning, measurement and social significance. Amsterdam: Netherlands Geographical Studies Association.

    Google Scholar 

  • Renooy, P., Ivarsson, S., van der Wusten-Gritsai, O., & Meijer, R. (2004). Undeclared work in an enlarged union: an analysis of shadow work—an in-depth study of specific items. Brussels: European Commission.

    Google Scholar 

  • Reynolds, P., Bygrave, W. D., Autio, E., & Hay, M. (2002). Global entrepreneurship monitor: 2002 executive monitor. London: London Business School.

    Google Scholar 

  • Rose, R. (2005). Insiders and outsiders: New Europe barometer 2004. Glasgow: Studies in Public Policy 404, Centre for the Study of Public Policy, University of Strathclyde.

    Google Scholar 

  • Ross, R. J. S. (2004). Slaves to fashion: Poverty and abuse in the new sweatshops. Ann Arbor: University of Michigan Press.

    Google Scholar 

  • Rouse, M. J., & Daellenbach, U. (1999). Rethinking research methods for the resource-based view: isolating sources of sustainable competitive advantage. Strategic Management Journal, 20, 487–494.

    Article  Google Scholar 

  • Sassen, S. (1997). Informalisation in advanced market economies. Geneva: Issues in Development Discussion Paper 20, International Labour Office.

  • Sauvy, A. (1984). Le travail noir et l’economie de demain. Paris: Calmann-Levy.

    Google Scholar 

  • Schneider, F., & Enste, D. H. (2000). Shadow economies; size, causes and consequences. Journal of Economic Literature, 38(1), 77–114.

    Google Scholar 

  • Small Business Council. (2004). Small business in the informal economy: Making the transition to the formal economy. London: Small Business Council.

    Google Scholar 

  • Smallbone, D., & Welter, F. (2004). Entrepreneurship in transition economies: necessity or opportunity driven?, http://www.babson.edu/entrep/fer/BABSON2003/XXV/XXV-S8/xxv-s8.htm. Accessed 9 October 2008).

  • Snyder, K. A. (2004). Routes to the informal economy in New York’s East village: crisis, economics and identity. Sociological Perspectives, 47(2), 215–240.

    Article  Google Scholar 

  • State Statistics Committee of Ukraine. (2006). Statistical information, http://www.ukrstat.gov.ua/. Accessed 9 July 2008.

  • Thomas, J. J. (1992). Informal economic activity. Hemel Hempstead: Harvester Wheatsheaf.

    Google Scholar 

  • Williams, C. C. (2004). Cash-in-hand work: The underground sector and the hidden economy of favours. Basingstoke: Palgrave Macmillan.

    Google Scholar 

  • Williams, C. C. (2006). The hidden enterprise culture: Entrepreneurship in the underground economy. Cheltenham: Elgar.

    Google Scholar 

  • Williams, C. C. (2007). Entrepreneurs operating in the informal economy: necessity or opportunity driven? Journal of Small Business and Entrepreneurship, 20(3), 309–320.

    Google Scholar 

  • Williams, C. C. (2008a). Beyond necessity-driven versus opportunity-driven entrepreneurship: a study of informal entrepreneurs in England, Russia and Ukraine. International Journal of Entrepreneurship and Innovation, 9(3), 157–166.

    Google Scholar 

  • Williams, C. C. (2008b). Beyond ideal-type depictions of entrepreneurship: some lessons from the service sector in England. The Service Industries Journal, 28(7/8), 1041–1053.

    Article  Google Scholar 

  • Williams, C. C. (2009). The motives of off-the-books entrepreneurs: necessity- or opportunity-driven? International Entrepreneurship and Management Journal, 5(2), 203–217.

    Article  Google Scholar 

  • Williams, C. C., & Windebank, J. (1998). Informal employment in the advanced economies: implications for work and welfare. London: Routledge.

    Google Scholar 

  • Williams, C. C., & Round, J. (2007a). Entrepreneurship and the informal economy: a study of Ukraine’s hidden enterprise culture. Journal of Developmental Entrepreneurship, 12(1), 119–136.

    Article  Google Scholar 

  • Williams, C. C., & Round, J. (2007b). Beyond negative depictions of informal employment: some lessons from Moscow. Urban Studies, 44(12), 2321–2338.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Centre for Regional Economic and Enterprise Development (CREED) Edgbaston, School of Management, University of Sheffield, 9 Mappin Street, Sheffield, S1 4DT, UK

    Colin C. Williams

  2. School of Geographical Science, University of Birmingham, Birmingham, B15 2TT, UK

    John Round

Authors
  1. Colin C. Williams
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. John Round
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Colin C. Williams.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Williams, C.C., Round, J. Explaining participation in off-the-books entrepreneurship in Ukraine: a gendered evaluation. Int Entrep Manag J 5, 497–513 (2009). https://doi.org/10.1007/s11365-009-0125-4

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11365-009-0125-4

Keywords

Search

Navigation