Shadow Economy's Effects on Entrepreneurial Mindsets and Entrepreneurship Development : Case:Russia
Ivanova, Aleksandra (2017)
Ivanova, Aleksandra
Lahden ammattikorkeakoulu
2017
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201705046294
https://urn.fi/URN:NBN:fi:amk-201705046294
Tiivistelmä
Russian economy today is characterized by slowing pace of economic growth. Economic development is assured by number specific factors.The key ones affecting development of market economy are entrepreneurship development and shadow economy.
The main objective of this research was to investigate relationships and dependencies between entrepreneurial development and shadow economy through shadow economy’s effects on entrepreneurial mindsets and to predict entrepreneurial development in Russia in the next five years. Entrepreneurial mindsets were investigated through the perceptions of active and potential entrepreneurs towards business activities and business environment.
The main research objective was met by utilizing deductive approach and mixed data collection method. Primary data was gathered through semistructured interviews of active entrepreneurs and an electronic survey of the population over the age 18.
The key empirical findings were general distrust of the population towards government, however increasing interest towards entrepreneurial activities. Moreover, large law-abiding attitude was found among survey respondents. At the same time, law-abiding intentions revealed were contradicting with the prevailing tax evasion habit of the majority of the interrogated individuals.
Based on the results of theoretical and empirical investigation, it was concluded that shadow economy mitigates present institutional inefficiencies, thus indirectly promoting the growth of entrepreneurship attractiveness. Thus, slow but stable entrpeneurship development in Russia is expected in next five years.
The main objective of this research was to investigate relationships and dependencies between entrepreneurial development and shadow economy through shadow economy’s effects on entrepreneurial mindsets and to predict entrepreneurial development in Russia in the next five years. Entrepreneurial mindsets were investigated through the perceptions of active and potential entrepreneurs towards business activities and business environment.
The main research objective was met by utilizing deductive approach and mixed data collection method. Primary data was gathered through semistructured interviews of active entrepreneurs and an electronic survey of the population over the age 18.
The key empirical findings were general distrust of the population towards government, however increasing interest towards entrepreneurial activities. Moreover, large law-abiding attitude was found among survey respondents. At the same time, law-abiding intentions revealed were contradicting with the prevailing tax evasion habit of the majority of the interrogated individuals.
Based on the results of theoretical and empirical investigation, it was concluded that shadow economy mitigates present institutional inefficiencies, thus indirectly promoting the growth of entrepreneurship attractiveness. Thus, slow but stable entrpeneurship development in Russia is expected in next five years.