ABSTRACT
Known as the people's economy, second economy, and parallel economy (Ocici 2006), a discrepancy exists in how the informal economy is perceived and defined. As an economic force for developing countries, it includes an array of economic activities including food preparers, garment workers, healers, hairdressers and beach/street vendors, as well as people engaged in illicit activities such as prostitution and gambling. Loosely organized, comprised of mostly unregistered enterprises owned at a household level, with few employees, paying little if any relevant taxes or other social contributions (Ocici 2006), it provides a “protective environment,” sparing businesses from burdensome and costly regulations that could prematurely sink or compromise their growth (Portes and Haller 2006).
