Question

what is informal sector

Answer 1

The informal sector refers to those workers who are self employed, or who work for those who are self employed. People who earn a living through self employment in most cases are not on payrolls, and thus are not taxed. Many informal workers do their businesses in unprotected and unsecured places.

Answer 2

Informal sector is the source of credit which is not under supervision of any legal organization like moneylenders traders rich peasants friends relatives etc.