DMPQ-What is shadow entrepreneurship? explain how corona crisis has worsened the problem of shadow entrepreneurship.

Shadow entrepreneurs manage a business that sells legitimate goods and services but they do not register their businesses. Shadow entrepreneurship is a key factor affecting economic development, both in a positive and negative sense.

Moreover, India has one of the highest numbers of shadow entrepreneurs in the world and with a rising gig economy, understanding shadow entrepreneurship becomes incredibly important.

Concerns With Shadow Entrepreneurship

  • As Shadow Entrepreneurship is largely unregulated, it provides little job security and few benefits to its workers like social security, insurance, etc.
  • Therefore, it is an extension of India’s informal labor, which has been prevalent for a long time and has remained unregulated.
  • : Shadow Entrepreneurship results in loss of tax revenue, the unfair competition to registered businesses, and also poor productivity – factors that hinder economic development. Further, as the Shadow Entrepreneurship businesses are not registered, it takes them beyond the reach of the law and makes shadow economy entrepreneurs vulnerable to corrupt government officials.
  • Shadow Entrepreneurship may also have cross-border and national security implications. For instance, the recently reported suspicious loans being provided by Chinese instant loan providers online.
KPSC Notes brings Prelims and Mains programs for KPSC Prelims and KPSC Mains Exam preparation. Various Programs initiated by KPSC Notes are as follows:- For any doubt, Just leave us a Chat or Fill us a querry––

Hope we have satisfied your need for KPSC Prelims and Mains Preparation

Kindly review us to serve even better


KPSC Mains Test Series 2022

20 Quality mock tests and GS Mains Notes

Mains Test Series and Notes

Mains Printed Notes (With COD)


KPSC Prelims Test Series 2022

24 Quality mock tests and GS Prelims Notes

Prelims Test Series and Notes

Prelims Printed Notes (With COD)

[jetpack_subscription_form title=”Subscribe to KPSC Notes” subscribe_text=”Never Miss any KPSC important update!” subscribe_button=”Sign Me Up” show_subscribers_total=”1″]

error: Content is protected !!