Information on the thesis

The  theses  develop  theoretical  recommendations  about  state  regulation  of
legalization  latent  entrepreneurship.  First  chapter  «Theoretical  principles  of  business
legalization»  is  working  out  the  determination  –  legal  and  illegal  business  and  their
factors.  To  plan  effective  actions  against  illegal  entrepreneurship, the  author  formed 16
uniform  factors,  including:  «State  regulation  of  business»,  «Corruption»  and  others.  To
implement  these  arrangements  an  appropriate  mechanism  should  be  created  taking  into
account principles of management systems construction. The second chapter «Analyse of
state regulation of legalization processes of entrepreneurship» research the effectiveness of
Ukrainian  legalization,  determines  the  influence  of  different  factors  on  legalize
entrepreneurship. They are quantified according to statistics, rates of Easy business end
World  governance  indicators.  Regression  analysis  identified  significant  influence  of
«Government regulation of entrepreneurship»; «Control corruption», «The size of GDP»,
«Government  effectiveness»,  «Rule  of  law».  The  third  chapter  «Improvement  of  state
regulation  of  legalization  processes  of  latent  entrepreneurship»  determines  significant
factors  with  using  economic  and  mathematical  methods  (state  regulation  in  «Trading
across borders», «Closing of business», «Paying taxes»), which should be influenced for
the  legalization  of  entrepreneurship;  the  mechanism  of  entrepreneurship  legalization  is
modelled. The proposed model involves the legalization of achieving «guidelines», which
are  the  areas  regulation  of  «Trading  across  borders»,  «Closing  of  business»,  «Paying
taxes»  and  the  corresponding  size  of  the  illegal  business  in  the  developed  countries.  It
allows to gradually  reducing  the  share  of  illegal business  in GDP  from  40.246% to:  1)
31.954%, 2) 18.594%, 3) 12.682%.
It was formed for the first time the model of legalization of hidden entrepreneurship,
that  aimed  at  changing  business  conditions  in  main  areas  of  state  regulation  of  the
economy  («Trading  across  borders»,  «Closing  of  business»,  «Paying  taxes»),  which

significantly  have  influence  on  the  reduction  size  of  hidden  entrepreneurship.  The
developed model makes it possible to estimate the effectiveness of legalization measures
by using the new method of calculating the share of latent entrepreneurship equation for its
correlation to ratings «Doing business» in areas of «Trading across borders», «Closing of
business», «Paying taxes». There are improved: approaches to determining the causes of
the  hidden  entrepreneurship  and  its  legalization,  which,  unlike  the  existing  ones,  allow
determining  factors  with  a  significant  correlation  influence  and  guiding  them  to
appropriate interventions; processes of state regulation of entrepreneurship by legalizing
concealed formation of specialized mechanism. The concept of «illegal entrepreneurship»,
which, unlike the common term «hidden economy», specifies the object (entrepreneurship)
and  determines  its  formal  characteristics  –  lawless  hiding  their  activities,  and  the  term
«legalization  of  entrepreneurship»  focuses  on  stimulating  the  reflection  in  accounting
transactions that are not prohibited by law; research features of entrepreneurship, which
allowed  to  select  four  (profitability,  risk-taking,  independence,  production  of  goods)
which, under the influence of external factors motivate to legalize or hide business, based
on  its  inherent  nature;  definition  the  used  tools  of  state  regulation  of  entrepreneurship
legalization.
Keywords:  illegal  entrepreneurship,  illegal  entrepreneurship  factors,  mechanism
entrepreneurship  legalization,  model  entrepreneurship  legalization,  tools  of  state
regulation.