Characteristics of informal sector
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Answer:
Employment
Characteristics of the people engaged in the informal sector
Absence of official protection and recognition
Non coverage byminimum wage legislation and social security system
Predominance of own-account and self-employment work
Absence of trade union organization
Low income and wages
Little job security
No fringe benefits from institutional sources
Enterprise
Characteristics of the activities in the informal sector
Unregulated and competitive markets
Small scale operation with individual or family ownership
Ease of entry
Reliance on locally available resources
Family ownership of enterprises
Labour intensive and adapted technology
Absence of access to institutional credit or other supports and protections
Habitat
Characteristics of the informal sector land and housing
Unauthorized use of vacant public or private land
Illegal subdvision and/or rental of land
Unauthorized construction of structures and buildings
Reliance on low cost and locally available scrap construction materials
Absence of restrictive standards and regulations
Reliance on family labour and artisanal techniques for construction
Non-availability of mortgage or any other subsidized finance
Credit
Characteristics of informal credit markets
Unregulated and non-subsidized
Easy accessibility
Availability in very small size and for short terms
Low administrative and procedural costs
Little of no collateral requirements
Flexible interest rates (fom very high to no interest at all)
Highly flexible transactions and repayments tailored to individual needs