This document analyzes the informal financial sector in Dhaka, Bangladesh. It collected primary and secondary data on 50 informal enterprises through surveys and online sources. The findings show that most informal businesses start with 5000-8000 BDT in capital from parents' savings, employ 1 person, and have average daily sales of 1000-3000 BDT. Unemployment is the main motivation for starting these businesses. Most perform averagely. Recommendations include increasing government regulation and support through loans, training, and developing this sector to address unemployment.

1. Delta Group
Department Of Business Administration
City University
Financial Management
FIN301

2. Delta Group
Md Manjerul islam 161411307 41st
Amran Hossain 161411337 41st
Minhajul Islam 161411331 41st
Sharmin Akther Sorna 161411358 41st

3. Informal Financial
Sectors in Bangladesh
Focus on Dhaka
city

4. Purpose of the study:
To collect and analysis of data & information on informal enterprises in Dhaka city.
To know the financial & economical condition of this sector in Bangladesh.
Scope of the study
Informal financial sector in Bangladesh, Focused on Dhaka city
Methodology
Primary & secondary both of the data are being use.
 Source of primary data: Survey (Sample survey of 50 people at Dhaka city by
questionnaire method)
 Source of secondary data: Online site and Newspaper.
Limitation
Lack of time,
Lack of manpower
Unfriendly communication

5. Informal Sector
The informal sector is the part of an economy that
is neither taxed nor monitored by the government.
Example of informal sector:
 Farmer
 Tea stall
 Hawker
 Barbers
 Cobbler
Introduction

6. 10.12%
71.62%
99.87%
10.26%
30.03%
69.57% 75.15%
100.00%
45.29%
100.00%
81.10% 85.15%
10.02%
89.88%
28.23%
0.63%
89.74%
69.97%
30.43% 24.85%
0.00%
54.71%
0.00%
18.90% 14.85%
89.98%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Formal Informal
ISIC sectors contribution (Formal & Informal)
Analysis

7. 42%
24%
26%
8%
Motivation to start the business
Unemployment
Extra Income
Indipendence
Recognition of
opportunity

8. 22%
25%
30%
12% 11%
0%
5%
10%
15%
20%
25%
30%
35%
Less than 3000 3001-5000 5001-8000 8001-10000 More than
10000
Series 1
Startup Capital

9. 28%
32%
17%
15%
8%
0%
5%
10%
15%
20%
25%
30%
35%
Less than 1000 1001-3000 3001-5000 5001-7000 More than
7000
Daily average sales

10. 29%
33%
17%
21%
Source of capital
Personal saving
Parents
Other than parents
Loan From Other

11. 28%
55%
17%
Overall performance of present business
Good Avarage Poor

12. 55%
27%
7%
5%
3% 2% 1%
0%
10%
20%
30%
40%
50%
60%
Self
Service
one Two Three Four Five More than
five
Number of employees

13. Findings
 The major cause of starting informal is Unemployment
 Most of the informal businesses are starting with tk.5000-tk.8000 as
startup capital.
 Most of the informal enterprise’s average daily sale is tk.1000-tk.3000
 The largest source for startup informal business is the “parents.”
 Most of the informal business running averagely
 most of the informal business is operate with one employee or own
service.

14. Recommendations
 Government should bring up the sector in a regulatory & monitoring
system so that they collect more tax and also maintain the quality &
stander.
 It’s a large & bright way of solving the unemployment problem. So people
& government should Increase it.
 Funding is the major problem of this sector. So banks & other financial
organization should provide small loan with lowest interest rate for
developing this sector.
 Government & NGO’s should arrange some technical training and
motivational programs so that people can startup a informal enterprise
perfectly & also can run it successfully.

15. Conclusion
Informal sector is very important part of our financial
system. Though it is not directly contribute in our
economy but it indirectly influencing the economy. As
a developing country with a large number of
unemployed population it might be a large sector of
employment. If government, NGO & people become
more careful informal sector might be a notable part
of our economy.