Informal trading is the trade of goods and services that takes place outside of the formal economy. Informal traders are people who sell goods on the side of the road, on sidewalks or in other public spaces. They are not registered to operate as a registered business and they do not have a fixed location for their business. Many informal traders live in poverty and lack basic services such as clean drinking water, sanitation facilities, healthcare, schools and electricity.
Why is informal trading important to the economy of South Africa?
Informal trading is important to the economy of South Africa because it provides a way for people to sell their goods and services without having to pay taxes. Informal traders in South Africa make up a large percentage of the population and they are an integral part of the economy.
There are many reasons informal trading is important in South Africa, but two main reasons are that it provides people with an opportunity to make money and it provides people with a way to buy goods and services without paying taxes.
What are the disadvantages of informal trade?
Informal trade is often an economic activity that takes place in developing countries where the government’s ability to enforce laws and regulations is limited.
The major disadvantages of informal trade are:
– Lack of enforcement of labour laws and regulation
– Poor working conditions
– Poor access to education and health services
