Enabling Enterprise: Tackling the Barriers to Formalisation

C.C. Williams, S. Nadin, A. P. Barbour, M. Llanes, Enabling Enterprise: Tackling the Barriers to Formalisation, Community Links, 2012

41 Pages Posted: 30 Jun 2013

See all articles by Colin Williams

Colin Williams

University of Sheffield - School of Management

Sara Nadin

University of Liverpool

Aaron Barbour

University of Sheffield - School of Management

Marlen Llanes

University of Sheffield - School of Management

Date Written: 2012

Abstract

A review of policy measures to facilitate the formalisation of informal enterprise.

This report details the findings from a study of informal entrepreneurship funded by the Institute for Small Businesses and Entrepreneurship (ISBE) and conducted by the University of Sheffield in collaboration with Community Links.

The overall aim of the study was to advance our understanding of informal entrepreneurship and to provide recommendations as to how informal entrepreneurial activity can best be formalised. By formalisation we mean the process by which informal work becomes compliant with employment tax and benefit laws. Based on a combination of desk-based and empirical research, along with consultation workshops involving experts from the UK and Europe, this report provides an up to date synopsis of current knowledge relating to informal entrepreneurship.

The empirical data develops this understanding further, highlighting the varied forms of informal entrepreneurship as well as the varied motives underpinning involvement in such activity. It is against this more nuanced understanding of informal entrepreneurship that policy responses are reviewed drawing on case study examples from across Europe.

We conclude that the multifarious nature of informal entrepreneurship and the challenges this presents in terms of tackling it, demands greater cooperation and coordination form different stakeholders. We therefore recommend that a Hidden Economy Expert Group be established with the aim of advancing our understanding of knowledge, policy and practice in respect of informal entrepreneurship.

Keywords: informal economy, informal employment, undeclared work, shadow economy, hidden economy

JEL Classification: O26

Suggested Citation

Williams, Colin and Nadin, Sara and Barbour, Aaron and Llanes, Marlen, Enabling Enterprise: Tackling the Barriers to Formalisation (2012). C.C. Williams, S. Nadin, A. P. Barbour, M. Llanes, Enabling Enterprise: Tackling the Barriers to Formalisation, Community Links, 2012, Available at SSRN: https://ssrn.com/abstract=2286336

Colin Williams (Contact Author)

University of Sheffield - School of Management ( email )

15 Conduit Road
Sheffield, S10 1FL
United Kingdom

HOME PAGE: http://https://www.sheffield.ac.uk/management/staff/williams/index

Sara Nadin

University of Liverpool ( email )

Chatham Street
Liverpool, L69 7ZH
United Kingdom

Aaron Barbour

University of Sheffield - School of Management ( email )

9 Mappin Street
Sheffield, S1 4DT
United Kingdom

Marlen Llanes

University of Sheffield - School of Management ( email )

9 Mappin Street
Sheffield, S1 4DT
United Kingdom

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