Pozhuieva Т. Shadow Economy influence on establishment of legal entity’s safety

Abstract

Ukrainesince its independence founds itself in a state of socio-economic transformation. Formation of market relations in the economy changed the legal status of enterprises, institutions and organizations significantly. Undertaken economic reforms require from all businesses, regardless of ownership, ability to survive in the harsh conditions of competition and the criminalization of society, to adapt to dynamic changes in the economy, politics and society. All these contribute to the emergence of many unforeseen dangers, real and potential threats for the quite young entrepreneurship ofUkraine. The aim of the article is to study the impact of the shadow economy to official entities ofUkraine. In the article the genesis of the shadow economy is studied and the statement that the informal sector is more flexible to changes in the environment is proved.

In the process of research making general scientific methods of analysis, synthesis and selective observation were used.  The progressive advance of the shadow economy may cause serious problems to legal entities and overall economy of Ukraine. After relying on formal indicators such as the unemployment rate, the number of economically active population, income, consumption, analysts cannot always be sure that the data from official sources concern analytical information is reliable, and sometimes perhaps even false. It is believed that the downturn in the formal economy is accompanied by a rise in the shadow. But because the informal sector is developing due to its advantages (more favorable investment climate), the total growth in the informal economy is more than legitimate