Informal sector in urban areas in Tanzania: some socio-demographic, economic and legal aspects
Keywords:Informal Sector, Informal Sector in Tanzania, Socio-Demographic, Urban Economy, Urban Areas in Tanzania.
Urban settings worldwide are homes to the informal sector due to the sectorâ€™s vast potentiality in terms of employment and income generation. Very little is found throughout the literature on the socio-demographic attributes of the informal sector in Tanzania despite its contribution to the economy. This paper empirically profiles informal sector in urban setting in Morogoro, Tanzania by analyzing socio-demographic, economic and legal aspects of the sector and those involved. Data was collected from 80 respondents using a questionnaire. Data analysis entailed descriptive statistics and cross tabulation. The results reveal dominance of men in the sector, low levels of education, young (19-26 years) and married people dominating, use of family labour, willing to operate businesses at times and locations convenient to customers. The study further shows that 55 % of the activities obtained capital from ownersâ€™ own sources and 82.5 % of the activities operating were not licensed. The results further show that 50% of the activities /businesses surveyed were owned by families. Overall, the study asserts that the IS has a valuable contribution to the well being of the urban dwellers. The study recommends a need for addressing training needs and interventions by Local Government Authorities in the Informal Sectorâ€™s operations for better performance and contribution to the livelihood of those involved but also to allow the Local Government Authorities earn income in form of taxes.
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