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  • The Relationship of Small and Medium-sized Businesses with the Shadow Economy in the Region. Business «Mortality» in Moscow

The Relationship of Small and Medium-sized Businesses with the Shadow Economy in the Region. Business «Mortality» in Moscow

Student: Fedorova Ekaterina

Supervisor: Anatoly Sergeevich Malin

Faculty: Graduate School of Business

Educational Programme: Management (Bachelor)

Year of Graduation: 2017

This study is aimed at studying the influence of the shadow economy in small and medium-sized businesses in Moscow city. It contains social, financial and economic problems that have a serious impact on the state, the standard of living of the population, the business climate and the economy. The work reveals the relationship between problems such as tax evasion, corruption, the "mortality" of business, bureaucratization and their impact on business. The main consequences of the development of the shadow economy began to deteriorate: the crisis of the national economy, the loss of controllability, the destruction of economic relations, the decline in production, the growth of economic crimes and a number of other aspects. In the social sphere, the shadow economy has led to a sharp differentiation, stratification of society into the rich and poor, as well as the loss of moral and ethical principles, and also some of the public tries to earn income by any means, using their official position. The level of support of the shadow economy by the population is growing, and it becomes increasingly difficult for a legal business to survive in conditions of unfavorable competition, counting only on its own strength.

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