**Table ‎1.1:  Typology of Concepts Used in the Informal Non-farm Sector**

|Concept|General Description|Statistical Descriptions|Comments|
|---|---|---|---|
|Non-farm Household<br>Enterprise without<br>employees (HEs)|Individuals who operate a<br>business by themselves or<br>with the support of other<br>members of the household,<br>but without hiring any<br>employees except on a casual<br>basis.<br>Unincorporated; this may<br>mean that the finances of the<br>enterprise are mixed with<br>those of the household.| Own-account operator<br> Self-employed in a non-farm<br>activity without employees<br> Unpaid family workers in a non-<br>farm activity|Helpful to include the family<br>employees in the definition as it is<br>a household activity.<br>Thus, the definition of “self<br>employed in a non-farm activity<br>without employees” is confusing<br>unless employees is defined to<br>exclude relatives.<br>May or may not have any<br>registration or license; may or<br>may not operate full-time all year;<br>may or may not pay taxes.|
|Non-farm Household<br>Enterprise with<br>employees|As above, but employ at least<br>one person outside of the<br>family| Self-employed with employees<br> Own-account operator with<br>employees<br> Unpaid family workers|As above. No size limitation. In<br>this study, mostly referred to as<br>microenterprises.|
|Family workers, non-<br>farm|People living in the household<br>who work in the business.<br>May also include close<br>relatives not living in the<br>household.| Unpaid family workers|The adjective “unpaid” is often<br>used without actually checking on<br>how earnings are shared<br>In our analysis, family workers<br>are combined with other non-<br>wage workers, either in as farmers<br>on in HEs|
|Employee|A person who is paid to do a<br>task for someone else in<br>exchange for payment.| Employee in a wage job, paid in<br>cash or kind|Synonym is “job;” “employ_ment_”<br>includes employee as well as<br>employer and anyone engaged in<br>nonwage economic activities,<br>with or without remuneration|
|Employer|Normally, the owner of<br>business (incorporated or<br>unincorporated)| Employer<br> Business-owner|In principle, an HE owner with<br>employees is an employer. But<br>mostly, the term employer is used<br>for a more established business.|
|Informal employee|Definitions vary across<br>countries, but normally<br>workers who do not have a<br>contract, or whose contract is<br>not in accordance with the<br>labor regulations and/or are<br>not covered by the national<br>social insurance system| Employee<br> Requires some information on the<br>nature of contract, and benefits<br>provided on the job|Not related to the characteristics<br>of the firm, only characteristics of<br>the job; informal workers may<br>work in informal firms|
|Micro, small, and<br>medium enterprises<br>(MSMEs)|<br>Enterprises which may be<br>incorporated and registered or<br>not.|Firm (in firm surveys)|Some include HEs with employee<br>in microenterprises. Size<br>categories varyacross countries.|
|Informal firm|Definition varies by country.<br>Usually a firm which is not<br>incorporated, licensed, or<br>registered. May or may not<br>have informal employees.|Can include HEs if:<br> data is collected in household<br>survey, and<br> survey instrument includes an<br>enterprise model<br>Some firm surveys (e.g., ICA) include<br>small (micro) firms, which may be<br>labeled as informal (criteria varies).<br>These are usually not HEs, as they<br>have nonfamilyregular employees.|Informality of firms has to be<br>defined with respect to national<br>regulations. An informal firm is<br>not in compliance with<br>regulations, regardless of size. But<br>there tends to be a correlation<br>with size of employment<br>(although not with revenues).|

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