Entrepreneurial Activity in the Informal Sector (IS)

Abstract

This report is a requirement of my Project, which is a part of the Bachelors of Business Administration program. I have tried my level best to make it an excellent report. The informal sector is economic activity that is neither taxed nor monitored by a government; and is not included in that government's Gross National Product (GNP); as opposed to a formal economy. Although the informal economy is often associated with developing countries -where up to 60% of the labor force (with as much 40% of GDP) works, all economic systems contain an informal economy in some proportion. The term "informal sector" was used in many earlier studies, and has been mostly replaced in more recent studies which use the newer term. The English idioms "under the table" and "off the books" typically refer to this type of economy. The term black market refers to a specific subset of the informal economy in which contraband is traded -where contraband may be strictly or informally defined.