Some reasons why it is so called are as follows (Hansenne, 1991, 7):.
1. Most of them are unregistered and unrecorded in official statistics. .
2. They tend to have little or no access to organized market, to credit institutions, to formal education and training institutions, or to many public services and amenities.
3. They are not recognized, supported or regulated by the government.
4. They are often compelled by circumstances to operate outside the framework of the law, and even where they are registered and respect certain aspects of the law they are almost invariably beyond the pale of social protection, labor legislation and protective measures at the workplace. .
The Problems of Informal Sector.
In many developing countries, in related to the term of "informal", the informal sector often live and settle in the outside of the "formal" sector, in the shanty-towns of urban area, so that their conditions are out of basic sanitary facilities, dangerous and unhealthy. .
As they have inappropriate appearance to modern business, they are often considered as the problem of many cities in the world. For some governments of developing countries, the informal sector is looked as reason of the increase some social and economic problems, such as the decrease of environment appearance, traffic jam, prostitution, and criminal. Even, some of them consider it as the reason of the increase of slum areas.
The persistence of the informal sector itself is due to the inability of the other sectors of the economy-agriculture or other rural activities on one hand, and modern industry and services on the other hand to provide adequate incomes or employment opportunities to rapidly growing labor force (Hansenne, 1991, 8). Since the workers concerned can not afford to be unemployed for any length of time they have to create for their own activities, which can provide them with an income, however, in order to survive.
