urban informal sector

The urban informal sector refers to economic activities in cities that are not officially regulated or protected by government systems like licenses, taxes, or formal contracts. These include small-scale businesses, street vendors, unregistered artisans, and casual workers. Often, people participate in these activities due to limited access to formal employment or resources. While they provide vital income and services, they usually lack social security, legal protections, and formal recognition, making their work more vulnerable. Despite this, the informal sector plays an essential role in urban economies by contributing to employment, innovation, and community livelihood.