Characteristics of Informal Micro-Entrepreneurs in Malaysia

Abstract

Doi:10.5901/mjss.2016.v7n2p128 Abstract The informal sector plays a major role in the Malaysian economy; however, there is still insufficient information about the informal economic activities in Malaysia. The term 'informal economy' at present is a label for economic activities, which take place outside the framework of public and private sector corporate establishments. According to the International Labor Organization (ILO), the common characteristics of an informal enterprise include the ease of entry, reliance on indigenous resources, family ownership, small-scaled operations, labor intensive, adaptive technology, and unregulated and competitive markets. The objective of this study is to identify the strengths and weaknesses of informal micro-entrepreneurs in Malaysia. The review is mainly focused on the key issues including characteristics of the informal economy in Malaysia, characteristics of the informal entrepreneurs, reasons for operating informally, and the strengths and weaknesses of the informal entrepreneurs.