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TACKLING INFORMAL ENTREPRENEURSHIP IN EAST-CENTRAL EUROPE: FROM A DETERRENCE TO PREVENTATIVE APPROACH
Journal of Developmental Entrepreneurship Pub Date : 2021-01-09 , DOI: 10.1142/s1084946720500247
COLIN C. WILLIAMS 1
Affiliation  

The aim of this paper is to evaluate the effectiveness of two contrasting policy approaches in tackling informal sector entrepreneurship. The dominant deterrence approach theorizes entrepreneurs as rational economic actors who operate in the informal sector when the benefits of doing so outweigh the costs. The resultant policy focus is upon deterring participation by increasing the costs of operating in the informal sector through increased penalties and probability of being caught. Recently, a more preventative approach has emerged theorizing entrepreneurs as social actors operating in the informal sector when there is a lack of vertical trust (in government) and horizontal trust (in others). The consequent policy focus is upon improving entrepreneurs’ vertical trust (in the state) and horizontal trust (in each other). To evaluate these approaches, evidence is reported from a 2019 Eurobarometer survey in six East-Central European countries (Czechia, Estonia, Latvia, Lithuania, Poland and Slovakia). The finding is that participation in informal entrepreneurship is not significantly associated with the deterrent measures of raising the penalties and probability of being caught but is significantly associated with the preventative measures of improving vertical and horizontal trust. The implications for theory and policy are discussed.

中文翻译:

应对中东欧的非正式创业:从威慑到预防

本文的目的是评估两种截然不同的政策方法在应对非正规部门创业方面的有效性。占主导地位的威慑方法将企业家理论化为理性的经济行为者,当这样做的好处大于成本时,他们在非正规部门经营。由此产生的政策重点是通过增加处罚和被抓到的可能性来增加在非正规部门运营的成本来阻止参与。最近,出现了一种更具预防性的方法,将企业家理论化为在缺乏垂直信任(在政府中)和水平信任(在其他方面)时在非正规部门运作的社会行为者。随之而来的政策重点是提高企业家的垂直信任(对国家)和水平信任(对彼此)。为了评估这些方法,2019 年欧洲晴雨表调查报告了在六个东中欧国家(捷克、爱沙尼亚、拉脱维亚、立陶宛、波兰和斯洛伐克)进行的证据。研究结果是,参与非正规创业与提高处罚和被抓概率的威慑措施没有显着相关性,但与提高纵向和横向信任的预防措施显着相关。讨论了对理论和政策的影响。研究结果是,参与非正规创业与提高处罚和被抓概率的威慑措施没有显着相关性,但与提高纵向和横向信任的预防措施显着相关。讨论了对理论和政策的影响。研究结果是,参与非正规创业与提高处罚和被抓概率的威慑措施没有显着相关性,但与提高纵向和横向信任的预防措施显着相关。讨论了对理论和政策的影响。
更新日期:2021-01-09
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