Similarities   between the Informal sector and Small scale industries

1. Both mainly operate on small scale with low out put
2. Both mainly employ limited capital for establishment and maintenance
3. Both mainly use local raw materials
4. Both are mainly located in semi-urban areas.
5. Both mainly produce consumer   goods for domestic consumption
6. Both contribute little to government    revenue
7. Both have low employment capacity
8. Both mainly use labour intensive   techniques    of production
9. Both mainly produce at excess capacity and operate in the private sector
10. Both involve limited or no book keeping.
11. Both are dominated by semi-skilled and unskilled   labour
12. On job training is common   in both the informal sector and the small scale industries
13. Both have a small profit margin.

Note: Small scale businesses are small scale businesses units formally registered with registrar of companies.