Geography Assignment

1.
) It is a small business activities that are unregistered or provide services without

licenses. The informal sector is also referred to by other terms such as the second
economy where by people create their own employment inorder to improve their
standards of living and quality of life. Other term is the hidden economy where by
economy of a country is usually not shown in official figure because the businesses
are not registered.
2. The characteristics of informal sector is

workers that are not employed are self employed, Even women and children are
mainly involved in this sector due to poverty, There's little capital investment and
They employs unskilled workers or semi skilled workers. There's a little potential to
expand into larger businesses because small scale businesses are being operated by
family members, There are no job security therefore there's unsafe and unhealthy
working conditions, They are associated with casual labour and out sourcing of work,
Money and barter are used for trading.
3. The advantages of informal sector is

to provides a source of income for those that cannot find a job in the formal sector,
They reduces crime by creating employment, The goods can be purchased at a lower
price, They provide an opportunity to acquire skills and knowledge. Cultural
Preservation,informal sector activities such as traditional crafts and food production,
help preserve cultural heritage.
The informal and services,informal sector businesses provide essential goods and
services, such as food, clothing, and transportation, to local communities.
The disadvantage of informal sector is

traders are frequently harassed by local authorities as informal sector activities are
considered to be illegal, Informal traders do not have the skills and education
required to enter the formal economy, Informal traders borrow money from money
lenders that charge high interest rates thus they always are in debt and have funds to
improve their business operations, Local markets may be small and the high cost of
transport of good to large distant markets makes it impossible for the traders to enter
such markets, There's low productivity and it reduced tax revenues and there's
insufficient capital along with shortage of qualified personnel.
4. The problems faced by social aspect is

Self Employed,work can lead to unsafe working conditions with no benefits and long
working hours with irregular incomes. Lack Of Training And Technology,can lead
to low levels of skills, lack of access to information and productivity without formal
contracts of employment. Workers are not protected under labour legislation,They
have no social protection. Many countries and regions with high levels of informal
work,also have high levels of poverty.
The problems faced by economic aspect is

Low Productivity,that result in many unskilled job seekers. Reduced Tax
Revenues, Poor governance,traders in the informal sector are not obliged to register
their businesses and therefore cannot make tax contribution. Excessive Regulations,
Povery,through its contribution to employment creation and earnings. Income
inequality,workers with similar skills tend to earn less in the informal sector than
their formal sector peers.
This photo refers to the poverty-beating informal sector needs clear policies
5. Reason for high rate of employment in the informal sector is

Limited formal job opportunities: The formal job market may not be able to
accommodate the large number of job seekers, leading many individuals to seek
employment in the informal sector.
Historical and structural factors: History of apartheid and economic inequality has
led to persistent structural barriers to formal employment, pushing many individuals
into the informal sector.
Lack of education and skills: Many individuals may lack the education and skills
required for formal employment, leading them to enter the informal sector where
formal qualifications may not be as necessary.
Flexibility and autonomy: The informal sector often offers individuals greater
flexibility and autonomy in their work, which can be appealing to many, especially in
a country with high unemployment rates.
Survival and entrepreneurship: Many individuals enter the informal sector out of
necessity, as a means of survival, or as entrepreneurs seeking opportunities in the
absence of formal employment options.
This photo refers to the percentage share of informal sector employment in total
employment by metropole
6. The contribution of informal sector to the economy is

GDP Boost: The informal sector contributes to the country's GDP, with estimates
ranging from 10% to 35% depending on the country.
Job Creation: The informal sector is a significant source of employment, particularly
for those with limited formal education or skills, and provides a safety net for
marginalized communities.
Small Business Incubator: The informal sector provides an environment for
entrepreneurs to test their ideas and build a foundation for their businesses.
Foreign Direct Investment: The informal sector attracts investors looking for
untapped markets and opportunities, stimulating economic growth and job creation.
Poverty Alleviation: The informal sector plays a critical role in poverty alleviation by
providing an essential safety net for many low-income households.
Skill Development: Informal sector activities often involve acquiring valuable skills
that can be transferred to formal employment opportunities.
This photo refers to the contribution of informal sector to the economy
NAME: NKULULEKO
SURNAME: GAMBUSHE
GRADE: 12A
SUBJECT: GEOGRAPHY
EDUCATOR: MRS SHANDU
GEOGRAPHY RESEARCH
INFORMAL SECTOR
BIBLIOGRAPHY
LEARNER GUIDE: GRADE 12
DR M. SINGH, MS V. PILLAY, MR S. CHANDRABHAON. 2015,

GEOGRAPHY STUDY GUIDE GRADE 12. VERSION: 2024
INTERNET
WWW.IMF.ORG.INTERNATIONAL. 2011, HTTPS://WWW.AGN

EUROPE.ORG
TABLE OF CONTENT

Geography Assignment

Uploaded by

Copyright:

Available Formats

Geography Assignment

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Geography Assignment

Uploaded by

Copyright:

Available Formats

1.

) It is a small business activities that are unregistered or provide services without

2. The characteristics of informal sector is

3. The advantages of informal sector is

The disadvantage of informal sector is

4. The problems faced by social aspect is

The problems faced by economic aspect is

5. Reason for high rate of employment in the informal sector is

6. The contribution of informal sector to the economy is

EDUCATOR: MRS SHANDU

LEARNER GUIDE: GRADE 12

DR M. SINGH, MS V. PILLAY, MR S. CHANDRABHAON. 2015,

WWW.IMF.ORG.INTERNATIONAL. 2011, HTTPS://WWW.AGN

You might also like