The Hidden Enterprise Culture
Show Less

The Hidden Enterprise Culture

Entrepreneurship in the Underground Economy

Colin C. Williams

Portraying how entrepreneurs often start out conducting some or all of their trade on an ‘off-the-books’ basis and how many continue to do so once they become established, this book provides the first detailed account of the vast and ubiquitous hidden enterprise culture existing in the interstices of western economies. Until now, the role of the underground economy in enterprise creation, entrepreneurship and small business development has been largely ignored despite its widespread prevalence and importance.
Buy Book in Print
Show Summary Details

Chapter 7: The Deterrence Option

Colin C. Williams

Extract

7. The deterrence option INTRODUCTION Here, the policy approach towards underground work that has been dominant across the western world is evaluated. This seeks to eradicate the underground economy using deterrence (‘push’) measures, notably the probability of detection and the level of punishments, in order to change the cost–benefit ratio confronting potential participants. To identify why its dominance has begun to recede, first, the practicality and second, the desirability of deterring such work is evaluated. In so doing, this chapter will reveal that although eradication is a wholly appropriate goal due to the negative impacts of this sector on consumers, suppliers, formal businesses and society, deterrence is not the appropriate means of achieving this objective. THE DETERRENCE APPROACH TOWARDS UNDERGROUND WORK Like other approaches towards underground work, the objective of the deterrence approach is to eradicate such work. The difference between this approach and others, however, rotates largely around how it seeks to achieve this. In this approach which has dominated public policy in most western countries, driven by a view that underground work is largely exploitative work conducted by off-the-books employees and has purely negative consequences, the belief is that eradication can be achieved by using tougher regulations and more punitive measures so as to deter people from participating in such work. First, therefore, it is necessary to outline how it views underground work along with what it considers to be the major consequences arising from its existence and following this, its approach to dealing with such...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.


Further information

or login to access all content.