Formal & informal businesses

FRUIT vendors, subsistence farmers, domestic workers and spaza-shop owners are all examples of people who work in the informal sector of the economy. An estimated 60% of all workers worldwide earn a living in the informal sector.

The informal, grey or shadow economy consists of businesses and workers who conduct business outside the control of the government and regulations. Let’s find out more about the differences between the formal and informal sectors of the economy, and what each contributes to society.

A LIFELINE FOR MILLIONS

Informal businesses are an for millions of people in South Africa who . Worldwide, are able to survive thanks to informal work. In , make up the in the informal sector. One of the reasons for this is because women or close by because they usually have to too.