Importance Of Informal Sector

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Informal sector has been emerged as the most important and essential sector of a country’s economic activities, especially in the developing countries. Accordingly, the informal sector economic activities are global phenomenon (ILO, 2002a). In Africa, for instance, informal sector workers accounted for almost 80 percent of non-agricultural occupations, over 60 percent of urban employment and over 90 percent of new jobs during the past few decades. According to the International Labour Organization (ILO), the informal sector employment includes both self-employment and wage employment in the informal enterprises (ILO, 2002b). The ILO report (2002a) also indicates that in all LDCs, self–employment accounted for the biggest proportion of non-agricultural…show more content…
In fact, everywhere in the world, a large and possibly rising proportion of informal sector work force found to be working on the street foot paths, sidewalks, and public places without any surrounded ground or covered work space (ILO, 2002a). These street vendors found to be vending a wide variety of goods like vegetables and fruits, food items and non-food items ranging from toys, soaps/detergents, clothing, etc. They also provide a wide range of services like food processing, tailoring, cloth repair, shoe making/repair, etc (Bhowinik, 2005). However, these low income people such as the street vendors who are essentially generating occupation for themselves and providing cheaper goods and services, but they have to take consent from the state or local authority to start such activates (Kaur,…show more content…
They are for the most part unregistered and working on a very small scale and with a low level of technology/organization. Most of them have very minimum level of productivity and income. These informal operators incline to have very little or no opportunity to organize markets in order to obtained credit from different organizations, to decimation of modern technology, to formal training to share information and to many community services and accommodations. A large number of them are recognized out without fixed location or in places such as small shops, outlets or home based activities. The street vendors as the persons are part of the informal sector who offers goods or services as street foot path. The state authority distinguished that there are three types of street vendors: first, who carry out vending on regular bases and with specific location/s; second, who do not get work on regular basis and without specific location/s (weekly market, bazars, etc.); and third, who move from one place/street to another for vending (e.g mobile vendors). It means that the street vendors may be stationary occupying the space on the roads or roadway or other public places and /or private or may be mobile carrying their products in the bags/baskets in the hands or heads

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