Features (characteristics)   of the Informal Sector

1.  Business activities are not formally registered by registrar of companies.
2. There is easy entry in business activities. Licenses either do not exist, are cheap or forged in the process of getting them.
3. The sector mainly employs local resources in the production process.
4. It mainly operates on a small scale with low output levels.
5. There is limited or no book keeping in carrying out business activities
6. It mainly employs labour intensive techniques the production.
7. The business activities are mainly operated in semi-urban areas.
8. The sector is dominated   by semi-skilled and unskilled   labour
9. Production is mainly of low quality due to use of poor production   techniques.
10. Business activities are mainly operated in open space and semi-permanent structures.
11. Production of goods and services is mainly for the local market.
12. It mainly operates at excess capacity due to limited capital employed.
13. On job training is common under the informal sector.

13. Businesses   are basically   organized   on the basis of sole proprietorship employing   a few family members.