What defines an informal business?

[Fidelia]

I always hear the business sector divided into the formal and the informal sectors. What are the characteristics that define informal sectors of the business world. Can you give one example of informal business?

 

[Suba]

Informal business refers to small businesses that do not have a business license and are not registered with the government. There are several characteristics of informal businesses such as not having a brand logo, small capital, not having financial bookkeeping, mixing personal money with business money. There are many examples of informal businesses such as street vendors or traders that you meet on the side of the road.

 

[Augusta]

I think these are just non registered businesses that can be started with little funding. There is no structure about it.

 

[King Belieal]

An informal business is a business that doesn't need registration and doesn't have a definite structure for it succeed.

 

[Augusta]

Informal businesses can provide a means of survival for individuals facing unemployment or underemployment

 

[Kross]

Some people actually start from informal businesses and grow to become large conglomerates. I started as informal but I am pursuing business registration now.

 

[Trush Jodie]

Example of an informal business is one that is involved in mini sales of food in wheelbarrow. It is purely meant for survival.