Characteristics of the Informal sector
- Informal sector activities are often dominated by low income groups.
- Entry and exit into and from such business operations is free.
- Business in the informal sector is often operated in the open, and semi permanent structures.
- Apart from their limited capital resource base, labour is employed extensively.
- Informal sector activities are mostly located in urban areas and in suburbs of towns.
- These operations are often profit motivated.
- Prevalent use of rudimentary techniques of production.
- The sector is further characterized by under capacity utilization of resources
- Such activities are usually organized on family lines.
- The informal sector is not much dominated or controlled by the government
The informal sector involves a wide range of business activities e.g. car washers, maize and cassava roasters, hawkers, roadside retailers, carpenters, repairers, tailoring, dry cleaning, taxi operators, charcoal sellers, newspaper vendors, builders of squatter huts, retail shoe shiners, kiosk owners, photographers, maize milling, brick making, baking, bread selling, etc.