CONTENTS OF RESEARCH

Friday, 29 March 2024 16:22

Importance of the informal sector:

-It can provide much needed employment for the

poverty stricken.
-Improves the quality of life.
-Reduces crime amongst the unemployed.
-Contribute to the country's economy.
-Informal traders support formal trading(get
goods from the formal sector).
-Encourages entrepreneurship amongst
communities.

Reasons for high informal sector employment in

South Africa:

-They do not pay any taxes.

-They form as a result of unemployment.
-Employees do not contribute to pension/UIF
funds/medical aids.
-They form as a result of poverty

Problems or challenges facing South Africa's

informal sector:

-The lack of support from the local government.

-The irregular and low income.
-Limited access to financial assistance.
-Lack of storage facilities.
-The lack of education.

Quick Notes Page 1