Journal of Entrepreneurship Education (Print ISSN: 1098-8394; Online ISSN: 1528-2651)

Abstract

Entrepreneurial Entry and Shadow Economy: The Case of Transition Countries

Author(s): Diana Stepanova, Andrey Vershitsky, Valeriy I. Prasolov

Entrepreneurship is at the core of the modern view on the economic relations development. Hiding of economic relations is one of the most significant obstacles to ensuring sustainable economic development, improving the welfare and standard of living of the population and strengthening national security. The purpose of the research is to conduct a comparative analysis of external factors of innovative development of entrepreneurial activity and entrepreneurship education, which is the main factor in the transition to a new level of economic relations and reducing shadow economy. The results of the diagnostic analysis show that information, communication factors (19%), and social indicators (labor market, entrepreneurship education and culture, 16%) of the development of innovative entrepreneurship have the greatest influence. A comparative analysis of the size and dynamics of the shadow sector shows a high level of shadow economy, which is a significant damper to the development of entrepreneurship.