Professional Documents
Culture Documents
Project On MSW
Project On MSW
AKSHA E.R
(REG. NO: CCASMSW002)
Mrs. DHANYA K
Asst. Professor in Social Work
Place: Irinjalakuda
Date: AKSHA E.R
ACKNOWLEDGEMENT
This project has been made successful by the sincere effort of a lot of people
without whom this venture would not have been possible. I would like to thank
all of them.
I would like to thank Rev. Fr. Jolly Andrews Principal, Christ College
(Autonomous), Irinjalakuda, for providing such a platform for executing and
approving the project proposal.
I wish to express my gratitude to the head of the department, Mrs. Rosemary T.
George for their valuable suggestions, support during the course of the study.
I would like to thank my research guide, Ms. Dhanya .K, who kindly supervised
and gave me excellent suggestions, guidance and encouragement all the time
during my project work which helped me in conceptualizing and completing this
endeavor.
I wish to express my sincere and humble gratitude to all respondents of the study
who had been kind enough to permit me to pursue this project.
Above all, I humbly solicit the God Almighty’s blessing and I am always
thankful for the strength and presence of mind showered upon me for completing
this work successfully.
AKSHA E.R
CONTENTS
2 15-21
REVIEW OF
LITERATURE
3 22-26
RESEARCH
METHODOLOGY
4 27-41
DATA ANALYSIS AND
INTERPRETATIONS
5 42-44
FINDINGS,
SUGGESTIONS &
CONCLUSIONS
6 45-47
BIBLIOGRAPHY
7 48-52
APPENDIX
LIST OF TABLES
The vast majority of informal sector activities provides goods and services whose
production and distribution are perfectly legal. This is in contrast to illegal production.
There is also a clear distinction between the informal sector and underground
production. Informal sector activities are not necessarily performed with the deliberate
intention of evading the payment of taxes or social security contributions, or infringing
labor legislation or other regulations. Certainly, some informal sector enterprises prefer
to remain unregistered or unlicensed in order to avoid compliance with some or all
regulations and thereby reduce production costs. One should, however, make a
distinction between those whose business revenue is high enough to bear the costs of
regulations and those who cannot afford to comply with existing regulations because
their income is too low and irregular, because certain laws and regulations are quite
irrelevant to their needs and conditions, or because the State is virtually non-existent in
their lives and lacks the means to enforce the regulations which it has enacted.
In some countries at least, a sizable proportion of informal sector enterprises are actually
registered in some way, or pay taxes, even though they may not be in a position to
comply with the full range of legal and administrative requirements. It should also be
noted that substantial segments of underground production originate from enterprises
belonging to the formal sector. Examples include the production of goods and services “
Since its first appearance in the early 1970s, the term informal sector has become so popular
that nowadays it is used with different meanings for different purposes. Originally, it referred to
a concept for data analysis and policy-making. Now it is sometimes used in a much broader
sense to refer to a concept for the collection of data on activities not covered by the existing,
conventional sources of statistics. In line with the original notion behind the concept, the
starting point of the 15th ICLS in defining the informal sector was an understanding of the
informal sector as an analytical/political concept rather than a statistical one. Paragraph 5 (1) of
the Resolution states:
“The informal sector may be broadly characterized as consisting of units engaged
in the production of goods or services with the primary objective of generating
employment and incomes to the persons concerned. These units typically operate
at a low level of organization, with little or no division between labor and capital
as factors of production and on a small scale. Labor relations – where they exist –
are based mostly on casual employment, kinship or personal and social relations
rather than contractual arrangements with formal guarantees.”
Care was taken by the 15th ICLS to make the activities included in the informal sector
definition as homogeneous as possible with respect to their economic objectives and behavior,
and the requirements for data analysis. From the practical viewpoint of survey operations, a
related consideration regarding the inclusion of enterprises was the need for, and usefulness of,
their coverage in informal sector surveys.
The 15th ICLS also tried to accommodate as far as possible the notion of the informal sector as
a statistical concept in extending its scope to as large a universe of non-observed activities as
seemed practically feasible and conceptually justifiable but rejected its interpretation as a
“catch-all” concept. Thus, as noted in Chapter 3, the definition adopted does not lead to a
segmentation of the economy or the employed population according to a formal/informal sector
dichotomy. The 15th ICLS recognized that activities excluded from the scope of the informal
sector were not necessarily formal. Examples are the household non-market production of
goods, small-scale agriculture, paid domestic services, and activities presently falling outside
the 1993 SNA production boundary, such as domestic or personal services provided by unpaid
household members and volunteer services rendered to the community. It was recommended
that such activities should be identified as belonging to a separate category outside the
formal/informal sector distinction.
The definition had to be acceptable to a wide range of countries from different parts of the
world. Thus, the definition had to be broad enough to encompass the variety of ways in which
the informal sector manifests itself in different countries. It had to provide flexibility for the
adoption of more specific definitions at the country level, reflecting national circumstances,
even though such flexibility may adversely affect the international comparability of the
statistics. Finally, the 15th ICLS was requested to develop a definition of the informal sector in
such a way that it could also be used for national accounting purposes. This requirement had
certain implications for the nature of the definition, as explained below.
Firstly, the informal sector had to be defined in terms of characteristics of the enterprises in
which the activities take place, rather than in terms of the characteristics of the persons involved
or their jobs. Accordingly, persons employed in the informal sector were defined as comprising
all persons who, during a given reference period, were employed in at least one informal sector
enterprise, irrespective of their status in employment and whether it was their main or a
secondary job. The definition of the population employed in the informal sector stresses the
distinction between employed persons and jobs. It indicates that persons are classified into the
informal sector through their relationship to a job in an enterprise with specific characteristics.
Persons exclusively employed in enterprises outside the informal sector are excluded from the
international definition of the informal sector, no matter how precarious their employment
situation may be. Thus, the concept of employment in the informal sector is not identical with
the concept of informal employment, i.e., persons employed in informal jobs. The 15th ICLS
was aware of the need for statistics not only on employment in the informal sector, but also on
employment in informal jobs. It was believed, however, that the best way of identifying
informal jobs would be through appropriate sub-categories of status-in-employment
classifications.
Secondly, the informal sector was considered by the 15th ICLS to be a sub-sector of the 1993
SNA household sector. In other words, informal sector enterprises are defined as a subset of
household unincorporated enterprises. As noted in Chapter 2, in contrast to corporations and
quasi-corporations, a household unincorporated enterprise is a producing unit that is not
constituted as a separate legal entity independently of the household members who own it. It
has no complete set of accounts that would provide a means of identifying flows of income and
capital between the enterprise and the owners. Household unincorporated enterprises include
unincorporated enterprises owned and operated by individual household members or by several
members of the same household, as well as unincorporated partnerships and cooperatives
formed by members of different households, all provided they lack complete sets of accounts.
As previously noted, the term enterprise is being used in a broad sense. It covers not only
producing units that employ hired labor, but also those that are owned and operated by single
individuals working on own-account as self-employed persons, either alone or with the help of
unpaid family members. The production activities may be undertaken inside or outside the
business owner’s home; they may be carried out in identifiable premises or without fixed
location. Accordingly, independent street vendors, taxi drivers, home-based workers, etc., are
all considered to be enterprises.
The 15th ICLS recognized that the characteristic features of household unincorporated
enterprises described in the 1993 SNA corresponded well to the concept of the informal sector
as commonly understood. The fixed and other capital used does not belong to the enterprises as
such but to their owners. The enterprises as such cannot engage in transactions or enter into
contracts with other units, nor incur liabilities on their own behalf. The owners have to raise the
necessary finance at their own risk and are personally liable, without limit, for any debts or
obligations incurred in the production process. Expenditure for production is often
indistinguishable from household expenditure, and capital equipment such as buildings or
vehicles may be used indistinguishably for business and household purposes.
There are basically two different but interrelated ways of viewing and defining the informal
sector. One approach views enterprises in relation to the legal and administrative framework in
force and defines the informal sector as made up of enterprises that do not conform to this
framework in some way. It assumes an intrinsic relation between non-registration and the
notion of informality. The second approach views the informal sector as a particular form of
production and defines it in terms of the way the enterprises are organized and carry out their
activities. Supporters of the second approach maintain that the informal sector is not identical
with the unregistered sector. They stress the need for a clear conceptual basis in defining the
sector and point out the problems that a criterion based on registration may pose for the
comparability of informal sector statistics between countries, between different areas within a
country, and over time. They also mention the practical difficulties of obtaining information on
the registration of enterprises as their owners may be reluctant to provide this information, and
other respondents (e.g. employees) may be unable to do so. They view non registration as a
characteristic of the informal sector rather than as a criterion for defining it.
The 15th ICLS specified that enterprises of informal employers should be defined in terms of
one or more of the following three criteria:
•The small size of the enterprise in terms of employment;
•non-registration of the enterprise (defined as for informal own-account enterprises); or
•Non-registration of its employees.
According to the 15th ICLS, the criterion of employment size can be formulated in terms of the
numberof employees employed by the enterprise on a continuous basis, or the total number of
employees (including employees employed on an occasional basis), or thetotal number of
persons engagedduring a specific reference period (including the entrepreneur, business
partners and contributing family workers in addition to the employees). The first of these is
considered to be the ideal measure from the conceptual point of view, as it matches best the
definition of informal own-account enterprises, which does not take account of the number of
enterprise owners, business partners, contributing family workers, and casual employees
working in the enterprise. In practice, however, information on the number of all employees or
on the total number of persons engaged is more easily obtained from survey respondents than
information on the number of employees employed on a continuous basis and may correspond
more closely to the criterion used in practice to define the lower size cut-off point for surveys of
formal sector enterprises or establishments.
In the case of enterprises composed of more than one establishment, the 15th ICL commended
use of the establishment rather than the enterprise as the unit to which the size criterion refers.
It specified that an enterprise composed of more than one establishment should be considered
informal if none of its establishments exceeded the size limit. For many countries, the use of the
establishment rather than the enterprise as the unit for the size criterion ensures compatibility
with the criterion determining coverage of formal sector establishment surveys. Thus informal
and formal sector statistics can complement each other.
It also becomes possible to capture the development of informal sector enterprises that for
various reasons tend to grow through the creation of additional small establishments rather than
through an expansion of employment in the original establishment.
An important advantage of the size criterion in defining the informal sector is that size can be
measured relatively easily by all relevant types of surveys. In addition, there is usually a
correlation between small size and other aspects of informality, in particular:
•small enterprises can remain unidentified by the authorities more easily than larger
enterprises;
•governments with limited administrative resources tend to focus on large enterprises
when trying to collect taxes or enforce labor legislation;
•unions tend to concentrate on large enterprises, which can be reached more easily so
that their efforts will achieve maximum results; and
•Small enterprises tend to use more traditional technologies.
On the other hand, proponents of non-registration as the informal sector criterion note that
small size, unless used in combination with other criteria, is not sufficient to define the informal
sector and that the choice of the size limit is more or less arbitrary.
The size limit for enterprises of informal employers was not specified by the 15th ICLS so that
it can be varied according to needs between countries and even between branches of economic
activity within a country. In order to avoid an overlap with formal sector surveys, it was
recommended that the choice of the size limit should take account of the coverage of
enterprise/establishment surveys of the larger units in the corresponding branches of economic
activity, where such surveys exist. However, some national statistical offices actually prefer to
have a certain overlap in coverage, providing it can be identified because response rates and
data quality in enterprise/establishment surveys tend to be relatively poor for the smaller units.
During the 15th ICLS consideration was given to defining the informal sector residually as
comprising all units that are not covered in existing enterprise/establishment surveys. It was
however decided that such a definition would not be appropriate for data analysis and policy-
making as it would tend to be unstable over time – the informal sector would expand or contract
if the coverage of the existing surveys were changed. It would also introduce substantial
differences between countries depending upon the coverage of their surveys. Furthermore, it
was recommended that, where the existing cut-off point used for formal sector surveys seemed
too high to be the size limit for the informal sector, efforts should be made to extend formal
sector survey coverage by lowering the cut-off point. Where this is not possible, it may be
preferable to recognize the existence of an intermediate segment and to cover it through a
separate survey rather than to include it in the scope of informal sector surveys. This is because
the survey methods used for the collection of data on informal sector enterprises may not be
equally well suited to medium-sized enterprises.
The criterion of non-registration of the employees of the enterprise refers to the conditions of
employment in the informal sector regarding the employees’ social and legal protection. It is
defined in terms of the absence of employment or apprenticeship contracts that commit the
employer to pay relevant taxes and social security contributions on behalf of the employees or
which make the employment relationships subject to standard labor legislation. According to
this criterion, an enterprise is informal if none of its employees are registered. This criterion is
especially useful in countries where the registration of workers also leads to the registration of
the enterprises employing them, e.g. with the social security institutions. In other countries, the
registration of workers is likely to be more useful as an indicator of the quality of employment
than as a criterion to define the informal sector.
Enterprise type
An enterprise is an undertaking which is engaged in the production and /or distribution of some
goods and /or services meant mainly for the purpose of sale, whether fully or partly. An
enterprise may be owned and operated by a single household or by several households jointly,
or by an institutional body. The definitions of various types of enterprises are given below:
units usually requires a systematic updating of the lists of the enterprises/ establishments in the
sample areas prior to selection of the ultimate sampling units. Economic or establishment
censuses are large-scale, costly operations that, due to resource constraints, many countries
cannot undertake or can undertake only in their (major) urban areas. Furthermore, complete
coverage of the informal sector without omissions or duplications is difficult. Many informal
sector enterprises are hard to identify and locate during a door to door enumeration because
they lack recognizable business premises. Examples are activities conducted inside the owner’s
home (e.g. tailoring, food processing) or without fixed location (e.g. construction, transport, and
ambulant trade). Unless substantial efforts are made, such units are likely to be omitted. An
approach that has proven to be efficient and cost-effective in a number of countries is to
conduct an economic census concurrently with the house-listing operation for a population
census. As information is collected separately for each enterprise/establishment, it may be
difficult to detect the linkages between informal sector activities undertaken by the same
individuals or households and to consolidate these data at the household or enterprise level.
There may be double-counting of activities in cases where, for example, some members of a
household produce goods in a small workshop or at home, and other members of the same
household sell these goods in a market or street stall. Notwithstanding these limitations,
enterprise censuses and surveys remain a useful and efficient method of data collection on the
“upper” segment of the informal sector (i.e., identifiable establishments), which are often the
main target of small enterprise development programmers. The National Commission for
Enterprises in the Unorganized Sector (NCEUS) was set up by the Government of India in
2004 to “review the status of the unorganized/informal sector in India including the nature
of enterprises, their size, spread and scope, and magnitude of employment”. They said: “One
of the fundamental issues in conceptualization of unorganized sector is the definition itself. The
time has come to take a holistic and comprehensive view of the data base of the
informal/unorganized sector.”The second area of concern is the employment statistics. It
appears from reports of the NCEUS based on NSS survey on Employment and Unemployment
that informal employment in the informal sector constitutes 86% of employment as of 2004-
2005. It further states in another report that the percentage of the informal employment in the
informal sector has grown by 2019 and not reduced. Thus, 86% of the 90% of people working
in the unorganized sector are not covered under labor legislation and they have absolutely no
protection in terms of employment as they do not have an appointment letter, contract,
guarantee for wages, health facilities, insurance, etc. They are at the mercy of the employer.
Lately, some states have suspended even the labor laws in the formal sector. The direction of
these states is worrying. The reason why the migrant labor that works in the informal sector
feels so vulnerable is because of the very nature of their employment. Therefore, when Covid-
19 struck and the employers stopped paying the wages and asked them to leave the job, they
were put on the brink of starvation. To make matters worse, the Centre stopped all trains, buses,
etc., for them to even go home. Therefore, they had no option but to start walking back to
their homes. The industrialists/employers are likely to be badly hit, as the share of the
unorganized sector is quite overwhelming. For e g: in agriculture and forestry, they constitute
99.9%, in fishing 98.7%, mining 64.4%, manufacturing 87.7%, construction 92.4%, wholesale
and retail trade, 98.3%, hotel and restaurants 96.7%, and transport, storage and communication
82.2%. Many of the industries may get crippled without the migrant workers. Reverse
migration is direct fallout of badly treating the informal sector for 70 years. A third dimension
has also emerged in the last few years. Many of the states such as Bihar, Chattisgarh, Rajasthan
and West Bengal have started developing economically. These are the states from where the
majority of the migrant laborers come. The migrant labor, possibly, now can find jobs near
home. If the Centre realizes the importance of the informal sector and its contribution to the
economic growth of the country, it will need to define the sector effectively, provide labor
legislation to protect employment, wages and treat them on par with the formal sector.
Kerala VyapariVyavasayiEkopanaSamit
REVIEW OF LITERATURE
International labor organization (2020), says it is estimated that globally more than 25
million jobs are at risk due to the COVID-19 outbreak. The International Labor
Organization (ILO) describes in its report1 as ‘the worst global crisis since World War II’.
It is estimated that four in five people (81%) of the global workforce of 3.3 billion people
are currently affected by the lockdowns in various countries. The United States, United
Kingdom, Canada, and most of the European and Asian countries are experiencing a rise in
unemployment. The Head of the International Monetary Fund (IMF), Kristalina Georgieva
has said the world is going through the worst economic crisis since the Great Depression in
the 1930s.
Chandra Shekar and KashifMansoor( 2020) this article the informal economy is classified
and can be defined in two parts. The first one is informal employees which refer to workers
employed by formal, registered firms on a casual, day-wage basis, as well as subsistence
actors such as self-employed workers. This includes individuals and entrepreneurs that
might undertake piecework in their premises, street vendors, and most domestic workers.
They lack protection for non-payment of wages, retrenchment without notice, and often
work under limitedoccupational safety conditions with no sick pay and healthinsurance.
RajanAneja&Vaishali Ahuja (2020)this article the Corona virus (COVID‐19) pandemic has
created an unprecedented loss and disruptions overall across the world. From developed to
developing, no country has been spared from its brunt. In this paper, we have analyzed the
implications of COVID‐19 on the economy and society of India so far. An impact assessment
based on the available literature is made on all the three sectors—primary, secondary, and
service sector along with the impact on migrants, health, poverty, job losses, informal sector,
environment, and so forth. All sectors of the economy have been disproportionately affected
and even within a sector, there is a disproportionate loss. The societal impacts are dire too with
job losses, mental illness, increased domestic violence, and so forth. Some positive effects can
be seen in terms of improved air quality, water quality, wildlife but the sustainability of such
impact is conditional upon post‐COVID and people's habits and future policies related to the
environment.
Andrew Atkeson (2020): The study aimed to introduce simple SIR (Susceptible, Infected, and
Recovered) model to economist regarding the progression of COVID-19 in the US over the
next 12-18 months. It is a Markov model that allows for quantitative statements on trade-
off between social timing and suppression of disease through social distancing and progression
of disease in population. The main conclusion for economist from this study was that it requires
severe social distancing for a year or 18 months to avoid severe public health consequences.
Therefore, it appears that there is significant trade-off to happen between the choice of
economic cost of whether we should impose social distancing measure for entire 12-18 months
or economic cost of large cumulative disease burden of lost work time and life due to disease,
and it is hard to determine. In model simulation peak infection rate occurs between 7-14
months from then, therefore it is imperative to try to find how healthcare, economic, and
financial institutions would function in period of such concentrated disease burden. Author
expected that this study and model would help in further economic evaluation.
Richard Baldwin., et al. (2020): The objective of this study was to examine the trade impact of
COVID-19 and look beyond it. Study founds COVID-19 to be both a supply as well as a
demand shock which will impact international trade in goods and services. Key take away was
that the virus is likely to be as contagious economically as it is
medically. The study concludes that there is a danger of permanent damage to trade sys
tem driven by firm’s reactions and
Policy. The study cautioned not to misinterpret pandemic as justification for anti-globalism.
The study also points the important difference between trade collapse in 2008-
09 global recession and which is likely to happen on wake of COVID-19 is that 2008-09
recession had impacted mostly demand side, but not much of impact was seen on supply side.
However, COVID-19 is likely to adversely impact the both sides- the demand as well as the
supply side.
Scott R. Baker., et al. (2020): The study has used text-based research by automatic and
manual/human reading of newspaper to quantify the role of COVID-19 on US
stock market volatility. The study finds that no previous pandemic, including Spanish flu, has
impacted stock market as strongly as current COVID-19 pandemic. As per studyCOVID-19 is
said to strongly impact stock market due to three prime reasons: (a) By very nature and severity
of this pandemic, apparent ease with which it spreads, it has great grave implications for public
health and economy.
(b) Information about pandemic is richer and diffuses more rapidly compared to earlier
pandemics. (c) Inter connectedness of modern economy.
ShlomoMaital., et al. (2020): This study surveyed and summarizes recent reports on impact of
COVID-19 on global economy. The study asserted that major impact of novel COVID-19
outbreak would be on supply side of the market, but the remedies being considered currently is
largely focusing on the demand side. It also concludes that under reasonable ongoing scenarios,
a global recession is much likely to occur. A.Abiad., et al. (2020): The study was conducted to
examine the effect of COVID-19 outbreak on developing Asia. The study finds that given the
highly unpredictable nature of the outbreak, it has predicted global impact between $77 billion
to $347 billion or 0.1 to 0.4% of global GDP, with moderate case estimate of 0.2% of global
GDP or $156 billion. Two third of expected impact is likely to fall on China, where outbreak
was concentrated earlier.
S. Mahendra Dev., et al. (2020): The objective of this research was to find the impact of
COVID-19 outbreak on Indian economy. The study has analyses Indian economy situation
across sectors before the outbreak and after the outbreak. It has mentioned that measures like
nationwide lockdown, restriction on international trade & commerce, closure of non-essential
services, restricted movement, all these will lead to adversely affect the economic health of the
Nation. Further, the study has mentioned that the magnitude of economic impact will depend
upon the severity and duration of health crisis, duration of lockdown, how effectively lockdown
is handled and also on manner in which situation unfolds once the lockdown is lifted.
Jayaram et al. (2020), in the case of Africa, 35 million informal service sector jobs are
vulnerable, as well as 15 million in the manufacturing and construction sectors. I consider this
under-estimation. The streamlining and shedding of direct employment by the non-agricultural
sector is already happening in response to COVID-19. Private businesses, both foreign and
domestic, will respond to the crisis by reducing their staff.
Mathew K. Tinu (2008) conducted a study on the role of social movements in
Organizing the unorganized sector workers LEARN, Dharavi. This study tried to detect
The problems as well as the prospects entailed in systematizing the unorganized workers and
recognize the part social movements can play in regulating the unorganized sector workers. The
intention was to appreciate the troubles and tribulations of the unorganized workers in general
and women workers in particular in the state of Maharashtra with Dharavi as the center of
attention. Qualitative Methodology of research was used to analyses the conditions of informal
sector workers. This was conducted through interview methods, which helped in identifying the
positive impact of unions on the workers. This also gave an insight into the obstacles faced by
the unions in organizing the informal sector workers. In addition to participant observation,
newspaper articles, books, journals and various government reports were referred as secondary
data.
Sodadas Kumar Vijya (2011) conducted a study on the working and living conditions of
Stone quarry workers. This study attempted to discuss the problems faced by stone quarry
Workers in India. The study examined the hiring practices, compensation, and the role of
Government and trade union in this sector. In this regard not much help is provided by the
government and legal framework of the country. The study was limited to the stone quarries in
the area of Anakapalli Mandal, Visakhapatnam District, Andhra Pradesh. A
The l population of 300 stone quarry workers was used for the study. It was socially surveyed
research which used the random sampling method. Data were collected from primary and
Secondary sources. The findings revealed that there was no clear employment relationship with
either employer or contractor and the workers always remain uncovered by any labor legislation
which regulates the terms and conditions of employment and social security schemes. Hence
the required implementation of a comprehensive law becomes imperative to provide a better
standard of living and to regulate their working conditions.
Remesh P. Babu(2012) conducted a study on ‘Rethinking Social Protection for India’s Poor
working in the Unorganized Sector’. This study gave importance to social security. The
characteristics of the unorganized sector were low wages, poor working/living Conditions,
seasonality of employment, contractual employment, lack of social security as Well as welfare
procedures, repudiation of rights and privileges. Consequently, the sector Has developed into “a
competitive and low-cost device to absorb labor which cannot be Absorbed elsewhere and any
attempt to regulate and bring it into more effective legal and The institutional framework is
perceived to be impairing the labor absorbing capacity of the Sector”.
International Labor Conference (2003) defined informal employment as comprising the total
number of informal jobs, whether carried out by informal sector enterprises, informal sector
enterprises, or households, during a given reference period.
System of National Accounts (1993)define the informal sector separately in the accounts and,
hence, to quantify the contribution of the informal sector to the gross domestic product. To
obtain an internationally agreed definition of the informal sector, which was acceptable to labor
statisticians as well as national accountants, the informal sector had to be defined in terms of
characteristics of the production units (enterprises) in which the activities take place (enterprise
approach), rather than in terms of the characteristics of the persons involved or of their jobs.
The ICLS (1993) defined the informal economy as enterprises that have a low level of
organization, little or no division between capital and labor as factors of production, and labor
relations consisting of social relationships, not formal contracts. Under this definition, the
informal economy is comprised only of unregistered or unincorporated enterprises owned by
households that produce goods and services to generate employment.
CHAPTER III
RESEARCH METHODOLOGY
The outbreak of covid-19 and the resultant total lockdown In India has greatly affected the
livelihoods of the informal sector of India. The total lockdown may help arrest the spread of the
corona virus. The covid 19 pandemics negatively affected urban areas and most of the people
engaged in small shops, low-scale businesses, or intermediation activities. These numbers – self-
employed and casual labor households – open our eyes to the hardships millions of households
must be undergoing due to the suspension of economic activities amid the COVID-19 outbreak.
Even if we go only by the shares of casual labor, one-fifth of the household population is
extremely vulnerable and finds itself fragile to cope up with the economic crisis. This study helps
to understand how coping mechanisms help the enterprise to overcome the post-lockdown
economic crisis.
This study focused on how vastly covid 19 pandemics are socially and economically affected.
The informal sector consists of self-employed, casual labor is a part of the regular employed
that have casual employment features. The entire self-employed comes under the informal
sector. In Cochin, most of them are engaged in coordinated commercial activity, such as bazaar
traders, restaurants, and manufacturing in sm. They may or may not have a discernible
organizational structure, with operations (and employment) that grows or shrinks, depending
upon the demand for the enterprises’ outputs or services. They are built around an
actor/entrepreneur who engages in a series of spot market transactions with customers,
suppliers, and workers, depending upon demand Informal enterprises are unable to seek
(formal) credit and have limited access to social programs and public goods. Informal sector
enterprises rarely invest in productivity-enhancing equipment, upgrade workers’ skills, or
achieve economies of scale and tend to function on razor-thin margins. They have no recourse
to legal protection should their customers renege on payment and offer no security form to their
employees, pay no taxes, and ignore minimum wage regulations. The situation of informal
workers during the post-lockdown period and to highlight their coping mechanisms and
significant changes in their immediate social and economic situation.
OBJECTIVES
General objective
• To study the coping mechanisms of the informal sector enterprises in the post lockdown
period in Ernakulam market
Specific objective
HYPOTHESIS
• The informal sector enterprises have a positive cope up with the economic crisis of post
lockdown.
DEFINITIONS
Theoretical definitions
Coping mechanism
WHO defines Coping mechanisms are the strategies people often use in the face of stress
and/or trauma to help manage painful or difficult emotions. Coping mechanisms can help
people adjust to stressful events while helping them maintain their emotional well-being.
Covid 19
WHO defines Corona viruses are a large family of viruses that may cause illness in animals or
humans. In humans, several corona viruses are known to cause respiratory infections ranging
from the common cold to more severe diseases such as Middle East Respiratory Syndrome
(MERS) and Severe Acute Respiratory Syndrome (SARS). The most recently discovered corona
virus causes corona virus disease COVID-19.
Post -Lockdown
A period of time in which people are not allowed to leavetheirhomes or travelfreely, because of
a dangerousdisease.
Informal sector
International Definition. As per SNA (1993), the informal sector consists of units engaged in the
production of goods or services with the primary objective of generating employment and income
for the persons concerned.
Enterprises
The International Labor Organization defines “create jobs, observe and implement labor
standards, contribute to social protection through taxes and own contributions, and constitute the
place where workers and employers interact daily.”
Operational definition
Coping mechanism
Coping means investing one's conscious effort, to solve personal and interpersonal problems, to
try to master, minimize or tolerate stress and conflict. The psychological coping mechanisms are
commonly termed coping strategies for coping skills.
Covid 19:
Illness caused by a novel corona virus now called severe acute respiratory syndrome corona virus.
Post lockdown
The temporary condition imposed by governmental authorities (as during the outbreak of an
epidemic disease) in which people are required to stay in their homes and refrain from or limit
activities outside the home involving public contact (such as dining out or attending large
gatherings)
Informal economies include garment workers working from their homes and informally
employed personnel of formal enterprises. Employees working in the informal sector can be
classified as wage workers, non-wage workers, or a combination of both.
Enterprises
Who are engaged in coordinated commercial activity, such as bazaar traders, restaurants of
Cochin Corporation?
Pilot study
The researcher inquired about the feasibility of a study with Mrs. Archana the labor and education
department Ernakulam.
Research design
A descriptive research design was adopted in this study to study the effect of the COVID 19
pandemic among informal sector enterprises in Ernakulam market
Universe or population
Unit of study
Inclusion criteria
Exclusion criteria
Sample design
The descriptive research design was selected as the research design. The study population was
selected based on non-probability sampling in which the convenience sampling technique was
used.
Sample size
The researcher will take samples from 60 respondents from enterprises in Ernakulam market
Data Analysis
Characterization
CHAPTER I: INTRODUCTION
BIBLIOGRAPHY
CHAPTER IV
AGE
Table 4.1
It is the age division of the informal sector employers. It divided into 4 categories. This table
and graph shows that the 10% of the respondent are belonging to the age category of 25-35 and
35-45 years old. 13.3% of the respondent is belonging to the age 55-65 years old. 31.6% of the
respondent is belonging to the age of 67 and above years old. It is shows that the most of the
age group of respondents are 67 and above years.
GENDER
FEMALE 20 33.33
OTHERS 0 0
Table 4.2
It is the gender division of employers is divided in 3 categories. The table shows that 66.6% of
the respondent is male. 33.33% of the respondents is female .it is shows that most of the
respondents are male.
EDUCATION
PRIMARYEDUCATION 17 28.3%
SECONDARY
EDUCATION 16 26.6%
GRADUATION 17 28.3%
OTHER 10 16.6%
Table 4.3
It is the qualification of the informal sector employer’s. Basic level of educational qualification
is primary education. 28% of the respondents have primary education. 26.6% of the respondent
have secondary education.28.3% of the respondents have a graduation. 16.6% of the
respondents have other educational qualification. The most of the employers have primary and
graduation level of educational qualification.
MARITAL STATUS
MARITAL
STATUS FREQUENCY PERCENT
MARRIED 49 81.66%
UNMARRIED 4 6.6%
WIDOW 7 11.65%
Table 4.4
It represents the marital status of the informal sector employers. The respondents are divided in
3 categories on the basis of their marital status. 81.66% of the respondents are married.11.6% of
the respondents is widows. 6.66% of the respondents are unmarried. Most of the respondents
are married.
TYPE OF ENTERPRISES
SHOP
RESTAURANT
Figure 4.1
It is shows that type of enterprises. 57% of the enterprises are shops. 43.30% of the enterprises
are restaurants.
TYPE OF OWNERSHIP
TYPE OF OWNERSHIP
SOLE PROPRIETORSHIP
PARTNERSHIP
CORPORATION
Figure 4.2
The figure 4.2 describes the type of ownership of enterprises. Majority of the enterprises have
sole proprietorship (66.66%). 33.33% of the enterprises are partnership. There no corporation
ownership.
ENTERPRISE REGISTERATION
YES
NO
Figure 4.3
The figure and table are described that the enterprises are mostly register in Cochin Corporation
and they have license. 98.33% of the enterprises have license and register in corporation.
BUSINESS EXPERINCE
6.66%
23.33%
0-5 YEARS
6- 10 YEARS
11- ABOVE
70%
Figure: 4.4
The figure 4.4 describe that they are started their business. Most of the enterprises started 11
years and above (70%). 23.33% of the enterprises are started 6-10 years ago. 6.66% of the
enterprises are started 1to 5 years ago. Most of the enterprises start their business more than 11
years and they are well experienced in their business.
YES 95%
Figure: 4.5
The figure 4.5 describe that most of the employers have merchant association membership
(95%). Fewer employers have no membership in merchant association.
GOVERNMENT TAXPAYER
YES 21 35%
NO 39 65%
Table: 4.5
This table describes the taxpayer of the informal sector enterprises. Most of the enterprises are
not pay any of the government taxes. The 65% of the employers are not pay any government
taxes.35% of the employers are pay the government taxes.
Figure; 4.6
This figure describe how much the covid 19 and lockdown affected their business mostly the
lockdown and covid 19 are negatively affected their business.51.66% of the enterprises are
completely affected. 48.33% of the enterprises are partly affected lockdown and the economic
crisis.
10.00%
5.00%
0.00%
WITH IN DAYS WITH IN WEEKS WITH IN MONTH
Figure: 4.7
This figure describes that how many times taken by the enterprises open their business after
lockdown. The enterprise take days, weeks, months to take to open their business post
lockdown. Majority enterprises are reopening there within months after lockdown. 45% of the
enterprises reopen their business within months after lockdown.41.66% of the enterprises is
reopen within weeks. 13.33% of enterprises are reopening within days.
Figure: 4.8
This figure 4.8describe that the enterprises have some maintenance works in post lock down.
Majority of the enterprises have maintenance works in their shops and restaurants because of
this lockdown. 61.66% of the enterprises did maintenance works in post lockdown.38.66% of
the enterprises have no or less maintenance works.
Figure: 4.9
The figure 4.9 Represent the main challenges faced by the enterprises in post lockdown. The
enterprises suffering many challenges in post lockdown period. 81.66% of the enterprises faced
the challenge is absence of customers and containment zone. The online markets are challenges
for 15% enterprises.3.33% of enterprises faced other challenges of post lockdown.
YES 60 100%
NO 0 0%
Table: 4.6
The table shows that all of the shops and restaurants are follow all the covid 19 safety
measures to the production of their customers.
COPING STRATEGIES
OTHER 53.33%
Figure: 4.10
In this figure 4.10 Shows the strategies applied by the shops and restaurants to overcome this
post lockdown and covid 19 economic crises. 53.33% of shops and restaurants are applying
different types of coping strategies. 25% shops and restaurants are provide home delivery and
21.66% have online delivery.
GOVERNMENT SUPPORT
3.33%
YES
NO
96.66%
Figure: 4.11
This figure 4.11 Represent that there have an insufficient support from government to informal
sector enterprises. 96 .66% of the enterprises in Cochin corporation not get any of the
government support in post lockdown.3.33% of the enterprises get some government support.
FINANCIAL 0 0%
MORATORIUM FOR TAX AND
LOANS 2 3.33%
OTHER 0 0%
NO SUPPORT 58 96.66%
Table:4.7
This table shows the different type of government supports to the informal sector enterprises.
96.66% of the informal sector enterprises not get any benefit. Only 3.33% informal enterprises
get moratorium for loans and taxes.
YES
48.33%
51.66%
NO
Figure: 4.12
This figure 4.12 Describe the employer’s bank loans for their business. More than fifty
percentage of business has bank loans (51.66%). 48.33% of the business has a no bank loans.
FREQUENCY PERCENT
YES 0 0%
NO 60 100%
Table: 4.8
This table shows that the enterprises handled any economic crisis in previous years. There is no
economic crisis in previous years.
REDUCING STAFFS IN POST LOCKDOWN
70.00%
60.00%
50.00%
40.00%
30.00% 63.33%
20.00% 36.66%
10.00%
0.00%
YES NO
Figure: 4.13
In this figure shows that the post lock down the shops and restaurants has reducing their staffs.
Because of economic crisis. 63.33% of the employers are not reducing their staffs. 36.66% of
the employers reduce their staffs.
NUMBER OF STAFFS
Figure :4.14
This figure shows that the number of staffs in shops and restaurants. 71.66% of the shops and
restaurants have 1-5 numbers of staffs. 16.66% of the shops and restaurants have 6-7 numbers
of staffs. 11.66% of shops and restaurants have 8 and above staffs.
CORRELATION
The correlation between the covid 19 and post lockdown affected informal sector enterprises
and their coping strategies. Correlation is significant. The relationship between the post
lockdown affect of the informal sector enterprises and coping strategies of them is 0.57. It is
positive and strong relationship.
If the covid 19 and post lockdown affects is increases, the coping mechanisms among also
increases. The post lockdown lead to informal enterprises applying more coping
mechanisms and manage the economic crisis situations in their business.
CHAPTER V
• 31% of the informal sector employers are belonging to the age category of 67 and above
age group. Most of them are senior citizens.
• 66% of the informal sectors employers are male.
• The educational qualification of the informal sector employers is primary and
graduation is more (28%) . they have basic education qualification.
• The 81 percentage of the informal sector employers are married. Most of the informal
sector employers are married.
• 57 percentages is shops and 43 percentages of informal sector enterprises are
restaurants.
• The 66 percentage of informal sector and the purses are sole proprietorship. Majority of
the Enterprises are have a sole proprietorship.
• The 98 percentage of the Enterprises are registered in Cochin Corporation and the most
of the informal sector enterprises have licensed.
• In Kochi Corporation 70 percentage of the Enterprises are started their business more
than 11 years. Most of the restaurants and shops have long years of business experience.
• 95 percentages of the informal sector employers have a merchant Association
membership. Most of them are included in different type of merchants Association.
• 65 percentages of the informal sector and lawyers are not taking the any government
taxes in their businesses.
• 51 % of the informal sector Enterprises especially the shops and restaurants are
completely affected the covid-19 and the lockdown.
• 45 % of the shops and restaurants are open their business after lockdown within months.
• 61 percentages of the shops and Restaurant have much maintenance work after the
lockdown business.
• The 81 % of theinformal enterpriser’s main challenges after the lockdown in their
business is absence of customers and containment zones.
• All the shops and restaurant after following all the covid-19 safety measures in their
shops and give importance to the customer safety.
• 53 % of the shops and restaurants are following the strategies of overcome this
economic crisis they are used different strategies like discount sale, new business ideas,
etc.
• 96% of the informal sectors enterprises are not get any support from the government this
post lockdown period of time.
• Only 3.3 percentages of the informal sector enterprises get support from the
government in Moratorium for their loans and tax.
• 51 percentages of the Enterprises have bank loan in their business. This economic crisis
created much difficulty to pay the loan.
• Informal sector enterprises especially the shops and restaurants has not faced any
economic crisis in previous years.
• After the lockdown 63 % of the Enterprises are not reduced their staff or employees
only the 36 percentage of the Enterprises are reduced their staff and employees.
• 71 percentages of the shops and restaurants are working with 1 to 5 staff.
Suggestions
Conclusion
It is the study of the coping mechanism of informal sector enterprises in post lockdown. Most
of the informal sector enterprises have high level of coping mechanism towards the economic
crisis.The study conducted at informal sector enterprises in Ernakulam market . The
respondents are 60 informal sector employers.
Bibliography
NO:
1. Name:
2. Age:
a. 25-35
b. 36 -45.
c. 46-55
d. 56- 65.
e. 67- above
3. Gender:
a. Male.
b. Female.
c. Others
4. Educational qualification:
a. Primary education.
b. Secondary Education.
c. Graduation.
d. Other
5. Marital status:
a. Married.
b. Unmarried
c. Widow
6. Type of enterprise:
a. Shop
b. restaurant
7. Type of ownership
a. Sole proprietorship.
b. Partnership.
c. Corporation
a. Yes.
b. No
a. 0-5
b. 6-10
c. 11 - above
a. Yes.
b. No
a. Yes.
b. No
12. How much the covid19 and lockdown affected your business?
a. Completely affected.
b. Partly affected.
c. Not affected
13. How many times have you take to open your business after lockdown?
a. Within days.
b. Within weeks.
c. Within months
14. Have you done any maintenance work in your business after lockdown?
a. Yes.
b. No
15. What are the main challenges you handled in post lockdown business
a. Online Markets.
b. Absence of customers.
c. Containment zones.
d. Other
a. Yes.
b. No
17. What are the strategies using for overcoming this crisis
a. Online delivery.
b. Home delivery.
c. Other
a. Yes
b. No
a. Financial.
b. The moratorium for loans and tax
c. other
a. Yes.
b. No
21. Have you handled any economic crisis in previous years?
a. Yes.
b. No
a. Yes.
b. No
a. 1-5.
b. 6-7.
c. 8- above