Can I just say I’ve written so many words to today, I couldn’t even count them not for a million pound. Even though I couldn’t get up at 6am as I planned it, only quarter to 8. I went over to the outreach and had delicious bacon and sausage sandwich for breakfast, whilst blowing some lovely read balloons up saying: Jesus is Immanuel if I am correct. I can’t remember exactly, all my thoughts are around Monsieur Thesis. Ruth prayed for me, which was really lovely and encouraging saying she had an impression of me writing very easily and the words opening up like flood gates. They did. The whole day was really amazing. I took regular breaks to keep my mind fresh and give a rest to my eyes. I realised after I got home from the breakfast, that the majority of my discussion (11.000 words) wasn’t relevant at all and I just opened those floodgates and praise God rewritten the whole thing (7000). I am down to 21.258 words and still have the conclusion to refine, which is about 2.700, but will shrink most likely a bit. I even told my mum today I was going to be very crossed if I wouldn’t pass. She laughed. I am so glad I didn’t ask for extension I wouldn’t get that far by this time and most likely would be very stressed that I have to spend all Christmas and New Year with Monsieur Thesis.
‘Policies generated black economy
It has to be noted the high cost and bureaucratic burden does not only makes it difficult for artisans to start up and drive to success an enterprise, but for the majority of the people with potential innovative business idea. As a direct result of that once an enterprise is started it is pushed towards the black economy by the very government which tries to whiten the economic activity. The complicated administrative burden gives many opportunities for SMEs, the entrepreneurs and the self-employed to hide income to try to make ends meet. For that reason most of the employers and employees in Hungary earn the minimum wage on paper and the rest is cash in hand. The more an employee earns, the more the employer need to pay to the government after that amount. Employers’ entrepreneurs‘ and self-employed’ view is that if they wouldn’t have to pay such high taxes, national insurance and pension contribution to the government, they wouldn’t need to hide their income to survive.
The myth of all enterprises being profitable
This goes back to Aghion`s theory about trust, the more legislation a country has because of not trusting its people the less its people trust in it. In Hungary the government and the policy makers’ point of view is that every entrepreneurial activity (regardless of just starting up or well established for years) is profitable and entrepreneurs hide their profit from APEH. It is important to note, that the success of an enterprise depends on many internal and external factors:
· Is it a necessity or opportunity based enterprise (the difference has been discussed in the litterateur review)?
· What are the internal and external factors of the country’s and the world economy?
o Is there a recession?
o How does export from countries’ with cheaper labour effect the price of the products the enterprise is producing?
· How does the unemployment rate of the country changes, decreasing or increasing buying power?
In reflection of these questions it is unrealistic to suppose that a starting up enterprise is successful and will stay successful.’
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