HIDDEN ENTREPRENEURSHIP IN THE NATIONAL ECONOMY: REASONS AND FEATURES
Authors:   SSI “Institute of Education Context Modernization”, Shaposhnykov Kostiantyn 
Published: May 2024

The purpose of the article is to substantiate and systematize the causes and features of hidden entrepreneurship in the national economy. It is noted that the generalization of the problem of the appearance and reasons for the development of hidden entrepreneurship creates conditions for determining the methods of reducing its level in Ukraine at the current stage. Identification of the main reasons, as well as awareness of the negative consequences of the further development of hidden entrepreneurship for the national economy should become the foundation for the transformation of the institutional environment in the country. Attention is focused on the fact that in scientific works there is a position that the emergence of the "underground economy" is due to endogenous reasons of self-awareness of entrepreneurs, their attitude to existing restrictions and prohibitions, as well as their attitude to the justice of the existence of such restrictions. The reasons for the appearance of hidden entrepreneurship are divided into general and partial. It was determined that common causes exist as a result of prohibitions and restrictions that are established regarding the regulation of the main aspects of economic activity. In turn, partial or specific reasons lead to the emergence of hidden entrepreneurship at the level of individual operations, types of activities, in relation to a specific restriction or prohibition. It was determined that the next stage in the development of social business began at the end of the 20th century as a result of the creation of the first social enterprises. It is during this period that the concept of "social business" begins to be used, which takes on the characteristics of a socio-economic phenomenon and is the subject of independent research by scientists. Thus, analyzing the given historical milestones in the development of the phenomenon of social entrepreneurship, two approaches to solving social problems that have arisen in society are highlighted: financial and institutional. It is substantiated that a significant reason for the possible appearance of hidden entrepreneurship is the practical implementation of the relationship between politics and the shadow economy. In addition, an important reason for the appearance of hidden entrepreneurship is the intention and desire of business to "survive" in conditions of socio-economic instability. This is due to the fact that the excessive costs faced by entrepreneurship in the legal sphere put the entrepreneur himself on the edge of survival, which leads to the forced transfer of the business into the shadows. It is pointed out that the reasons for the appearance of hidden entrepreneurship are also related to circumstances of an objective nature. In this case, it is not so much about a deliberate violation of the established restrictions as about their absence or insufficient formation. It is primarily about the emergence of operations and activities related to the intensification of the use and spread of information and communication technologies, the development of creative industries, social networks, etc. It is justified that in order to explain the cause-and-effect relationships of hidden entrepreneurship, it is advisable to pay attention to the possibilities of using a behavioral approach. That is, the study of the essence of behavior regarding the implementation of hidden entrepreneurship is expedient to conduct also from the standpoint of a behavioral approach and a separate aspect – deviant behavior. Attention is focused on the fact that the basis of behavior oriented towards hidden entrepreneurship is the motive of preserving activity, saving costs, and striving to increase one's own wealth. Usually, this behavior is accompanied by the choice of a form of shadow operations, given the scale of the business and risk appetite. It was determined that the main essential characteristics of behavior oriented towards hidden entrepreneurship are: individuality, propensity to risk, the search for a compromise between the expectation of income and the avoidance of losses. It was concluded that hidden entrepreneurship from the point of view of cause-and-effect relationships is one of the forms of the embodiment of the behavior of the subject of economic relations, which reflects the complex interaction of his rational and emotional motives. The main consequences of hidden entrepreneurship can be: a decrease in competition, especially in the case of an established partnership of shadow business with politics; receiving benefits, privileges, exclusive rights in the state, including due to corruption and lobbying for draft laws; reducing the risks of economic activity; the possibility of legalization of illegally obtained income; illegal appropriation of rights to economic benefits; the formation of stocks of money of shadow origin, due to the need to pay shadow expenses.