Sector informal

The informal sector refers to economic activities that are not regulated or protected by the government. These include small-scale businesses, street vendors, and self-employed workers who operate without formal registration, licensing, or social security benefits. Often, transactions are cash-based, and workers may lack job security or legal protections. The informal sector is significant because it provides employment and income for many people, especially in developing economies, but it also poses challenges for government revenue collection and labor rights enforcement.