About this topic
Informality refers to the condition of participating in economic activity occurring outside of formal regulatory, tax, and labor systems.
Small-scale merchants and gig workers are often home-based and unregistered—and thus lacking formal benefits and legal protections. According to the International Labour Organization, as many as half of workers globally, and 90% of micro- and small enterprises, are involved in the informal economy. Digital markets—both purpose-built platforms and social media—are blurring the line between informal and formal selling and trading. Digital markets have the potential to foster financial inclusion for those in the informal economy, but potential barriers to access must be carefully addressed.
