Despite a slow decline in the last 10 years, the informal economy in the EU has proved resilient. This is especially true in the Eastern and Southern Member States, where it often accounts for more than 20% of the national GDP.
• Informal entrepreneurship – i.e. informal self-employment and informal new entrepreneurs – is a major component of the informal economy as a whole.
Informal self-employment as the main source of income is most common in Southern Europe, while informal self-employment covering small occasional activities (i.e. paid favours) is most common in Nordic countries. On the other hand, informal start-up rates are higher in Eastern and Southern Europe, although exceptions exist.
Men, youth, the unemployed, the self-employed and rural dwellers are more likely than other social groups to engage in informal self-employment.
Read more:
Policy Brief on Informal Entrepreneurship_ Entrepreneurial Activities in Europe
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