International Journal of Entrepreneurship (Print ISSN: 1099-9264; Online ISSN: 1939-4675)

Abstract

Revealing the Role of Necessity and Opportunity Driven in the Underground Economy: Case of Cicaheum Marketplace in Bandung, Indonesia

Author(s): Sonny Rustiadi, Nazmi Fathnur Ahmad

The existence and widespread of underground economy have been a growing problem of taxation around the world. Considerable number of studies about underground economy have been conducted. Mostly attempted to measure the size of underground economy from econometric approach, leaving little understanding about the ground of underground economy such as monetary activities, the participant, the process, the size, and the motives behind those activities. Therefore, this study attempted to explore the activities, the participant, the process and motives of necessity and opportunity behind the underground economy in marketplace, where majority of micro enterprise economic activities occur. In this case, Cicaheum marketplace as one of major mid-sized marketplace in Bandung were the context of this study. Participant observation around marketplace and 150 interviews to participant of marketplace economic activities were conducted to collect data. This study found almost every monetary activity in marketplace are underground economy and the motives behind those activities were varied, driven from solely necessity, solely opportunity, and both necessity-opportunity.