India is world No. 2 on shadow businesses: Study

May 27 2014, 18:34 IST
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Shadow entrepreneurs manage a business that sells legitimate goods and services but they do not register their businesses. (Thinkstock) Shadow entrepreneurs manage a business that sells legitimate goods and services but they do not register their businesses. (Thinkstock)
SummaryShadow entrepreneurs in India are hampering economic growth: Study

report notes.

While the Philippines (126), Pakistan (109) and Egypt (103) make up the top 5 of the league table of shadow businesses, the UK exhibits the lowest rate of shadow entrepreneurship among the 68 countries surveyed, with a ratio of only one shadow economy entrepreneur to some 30 legally registered businesses.

The researchers concluded that where proper economic and political frameworks are in place, individuals are more likely to become ďformalĒ entrepreneurs and register their business because doing so enables them to take advantage of laws and regulations that protect their company, such as trademarking legislation.

To create their league table, the UK researchers combined data from the Global Entrepreneurship Monitor (GEM) and the World Bank.

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