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Theorising the hidden enterprise culture: the nature of entrepreneurship in the shadow economy

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  • Colin C. Williams
  • Sara Nadin

Abstract

This paper evaluates critically competing theories that variously represent entrepreneurship in the shadow economy as a residue from a previous mode of production (modernisation theory), a survival strategy for those marginalised from the circuits of the modern economy (structuralist theory), a voluntarily chosen endeavour pursued due to over-regulation in the legitimate economy (neo-liberal theory) or a practice chosen for social, redistributive, resistance or identity reasons (post-structuralist theory). Reporting evidence from 861 face-to-face interviews in English localities, it is shown that no one theory is universally applicable. Instead, all are revealed to be valid with regard to various forms of shadow entrepreneurship, and only by integrating them is it possible to develop a finer-grained more inclusive comprehension of this multi-faceted and complex hidden enterprise culture.

Suggested Citation

  • Colin C. Williams & Sara Nadin, 2011. "Theorising the hidden enterprise culture: the nature of entrepreneurship in the shadow economy," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 14(3), pages 334-348.
    • Handle: RePEc:ids:ijesbu:v:14:y:2011:i:3:p:334-348
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    Citations

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    Cited by:

    1. Aziz N. Berdiev & James W. Saunoris, 2019. "Globalization and Informal Entrepreneurship: A Cross-Country Analysis," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 47(1), pages 65-80, March.
    2. Aziz N. Berdiev & James W. Saunoris, 2018. "Corruption and Entrepreneurship: Cross‐Country Evidence from Formal and Informal Sectors," Southern Economic Journal, John Wiley & Sons, vol. 84(3), pages 831-848, January.
    3. Aziz N. Berdiev & James W. Saunoris, 2020. "Cross‐Country Evidence Of Corruption Spillovers To Formal And Informal Entrepreneurship," Contemporary Economic Policy, Western Economic Association International, vol. 38(1), pages 48-66, January.
    4. Roberto Dell'Anno, 2022. "Theories and definitions of the informal economy: A survey," Journal of Economic Surveys, Wiley Blackwell, vol. 36(5), pages 1610-1643, December.
    5. Florencia Verónica Pedroni & Anahí Briozzo & Gabriela Pesce, 2022. "Determinants of unreported income in Latin American companies: a business perspective," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 16(1), pages 58-83.
    6. Akbal, Can, 2021. "Entrepreneurship and the Shadow (Informal) Economy," MPRA Paper 109739, University Library of Munich, Germany.

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