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Asian Journal of Research in Social Sciences and Humanities
Year : 2012, Volume : 2, Issue : 2
First page : ( 172) Last page : ( 185)
Online ISSN : 2249-7315.

A study on management practices of entrepreneurs in informal sector

Dr. Vikkraman P.*Director I/C, Mr. Baskaran S.**Research Scholar

*School of Management Studies, Anna University of Technology, Coimbatore, mail.com

**Anna University of Technology, Coimbatore

Online published on 10 February, 2012.


The informal sector represents an important part of the economy and the labor market in many countries, especially developing countries. Measurements of the informal sector are of intrinsic interest in their own right and contribute toward exhaustive measures of gross domestic product (GDP). Considering that the informal sector provides employment for income creation to a large number of poor and contributes significantly to the GDP of many developing countries, as most of the informal sector enterprises do not maintain business accounts. The informal sector represents a substantial portion of economic activity, especially in developing and transition countries. Some people engage in legal but informal work in India in a system of cash-only exchanges. These individuals are operating unregistered businesses or engaging in under-the-table work. This type of economic activity is often called “informal work” or referred to as “the informal economy.” There is a natural ling between the informal economy and the services provided by microenterprise programs. Estimates (Charmes 2000) show that the sector accounts for more than two thirds of total employment and more than one third of the total gross domestic product (GDP) of the nonagricultural sector in Asia.



Informal Economy, Informal Sector, Informal Work, Informal Entrepreneurs.


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