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

Authors: Colin C. Williams; Sara Nadin

Addresses: School of Management, University of Sheffield, 9 Mappin Street, Sheffield S1 4DT, UK. ' School of Management, University of Sheffield, 9 Mappin Street, Sheffield S1 4DT, UK

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.

Keywords: enterprise cultures; enterprise development; business start-ups; informal sectors; shadow economy; underground economy; tax non-compliance; England; UK; United Kingdom; taxation; production modes; modernisation theory; survival strategies; marginalisation; structuralist theory; structuralism; voluntarily endeavours; over-regulation; legitimate economies; neo-liberal theory; neo-liberalism; social relations; redistributive rationales; resistance rationales; identity rationales; redistribution; post-structuralist theory; hidden cultures; complex cultures; multi-faceted cultures; small and medium-sized enterprises; SMEs; marginalised entrepreneurs; shadow entrepreneurship.

DOI: 10.1504/IJESB.2011.042757

International Journal of Entrepreneurship and Small Business, 2011 Vol.14 No.3, pp.334 - 348

Published online: 21 Oct 2014 *

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