Testing the “slippery slope framework” among self-employed taxpayers

Entrepreneurship Theory and Practice

Martínez-Pérez

Kedir

2017

177

189

To advance understanding of the entrepreneurship process in developing economies, this article evaluates whether registered enterprises that initially avoid the cost of registration, and focus their resources on overcoming other liabilities of newness, lay a stronger foundation for subsequent growth. Analyzing World Bank Enterprise Survey data across 127 countries, and controlling for other firm performance determinants, registered enterprises that started up unregistered and spent longer operating unregistered are revealed to have significantly higher subsequent annual sales, employment, and productivity growth rates compared with those that registered from the outset. The theoretical and policy implications are then discussed.

Section: Discussionmentioning

confidence: 99%

Informal Entrepreneurship in Developing Economies: The Impacts of Starting up Unregistered on firm Performance

Entrepreneurship Theory and Practice

Martínez-Pérez

Kedir

2017

177

189

“…A second approach is the "slippery slope framework" which pursues both voluntary and enforced compliance concurrently by developing both greater trust in authorities and the greater power of authorities (Kogler et al, 2015;Muehlbacher et al, 2011;Wahl et al, 2010).…”

Section: Combining the Hard Direct And Soft Indirect Control Approachesmentioning

confidence: 99%

Tackling enterprise in the informal economy: an introductory overview

2016

IJESB

This paper introduces this special issue by providing an overview of the various policy options and approaches available for tackling enterprise in the informal economy. It firstly reviews four possible hypothetical policy options, namely doing nothing, eradicating informal sector enterprise, moving formal enterprises into the informal economy, or formalizing enterprise in the informal economy. Displaying that formalizing informal sector enterprise is the most viable and most commonly adopted approach, it then reviews the two approaches of using either direct 2 controls, which increase the costs of operating informally and/or the benefits of operating formally, or indirect controls that seek greater self-regulation. Following this, the ways in which these approaches can be combined is then reviewed. The outcome is a comprehensive introductory overview and conceptual framework for contextualizing the arguments of the papers in this special issue.

“…The outcome is that a combination of both greater trust in authorities and the greater power of authorities is seen to be a potent combination. Grounded in this finding, the suggestion is that pursuing both is the most effective means of tackling informal entrepreneurship (Kogler et al, 2015).…”

Section: Slippery Slope Frameworkmentioning

confidence: 99%

Tackling Entrepreneurship in the Informal Sector: An Overview of the Policy Options, Approaches and Measures

J. Dev. Entrepreneurship

2015

The aim of this paper is to review the various policy options, approaches and measures that can be used to address informal entrepreneurship. To do this, it firstly reviews four possible policy options, namely taking no action, eradicating informal entrepreneurship, moving formal entrepreneurship into the informal economy, or transforming informal entrepreneurship into formal entrepreneurship. Revealing that transforming informal entrepreneurship into formal entrepreneurship is not only the most viable option but also the approach most commonly adopted by supra-national agencies and national governments, a review is then undertaken of how this can be achieved using either direct controls, which seek to increase the costs of informal entrepreneurship and/or the benefits of formal entrepreneurship, or indirect controls that seek to generate a commitment to compliance and greater self-regulation. It is then revealed how these approaches and their accompanying policy measures are not mutually exclusive and can be combined in various ways, exemplified by the responsive regulation and slippery slope approaches. The outcome is a comprehensive review and evaluation of the various policy options, approaches and measures available to policy-makers for addressing informal entrepreneurship along with some recommendations regarding the way forward.