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
Date Written: 2012
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: Suggested Citation