ELI5: Explain Like I'm 5

Informal economy

Informal economy is when people don't pay taxes or follow the rules that regular businesses have to follow. They can be street vendors who sell food without a licence, or people doing jobs and getting paid without getting the right paperwork. This means they don't have to pay taxes and get away without paying the same fees that other businesses have to pay. This can hurt regular businesses who have to pay more to keep their business running.