London : India has emerged as a country with some of the highest number of unregistered businesses in the world, according to a latest UK study that found Indonesia with maximum number of shadow businesses.
Researchers at Imperial College Business School in London found that a large number of shadow entrepreneurs are operating in India without registering their businesses with official authorities and eventually hampering economic growth. Shadow entrepreneurs are defined as individuals who manage a business that sells legitimate goods and services but they do not register their businesses. “We found that government policies could play a big role in helping shadow economy entrepreneurs transition to the formal economy. This is important because shadow economy entrepreneurs are less likely to innovate, accumulate capital and invest in the economy, which hampers economic growth,” he added.