Abstract:
After independence in tnt, populat~on of urban areas of
Bangladesh has become almost double due to socio-econom~c,
pol~tical reasons and sometimes natural hazards. Employment
opportunities coupled with higher wages in urban labour market also
attract migrants to move into the urban areas. It has been observed
that rates of rural-urban migration continue to exceed rates of job
creation of urban formal sector. Consequently the vast majority of
unemployed people are engaged in various types of informal
activities such as trade. manufacturing! transport. services etc.
mainly as self-employment. Nevertheless, there is no policy guide
line about the development and regulat~on of this sector in natMwal
development policy.
The present research study focuses on the growth pattern of
informal sector enterprises of Faridpur town and also examine the
level of employment generation in this sector and ~ncome status of
participants. The study also describes about source of in~t~al
capital and forward and backward linkages of informal sector
activities. The study identifies that shortage of capital and
permanent shops are the main problems towards growth and
development on the informal sectors activities.
In the light of r,esearch findings, the study suggests that
credit should be provided to the informal sector enterprises and
this will lead to higher income and generate employment. Credit can
be provided formlug groups through co-operat~ves organised by the
low income member enterprenurs for security and proper use of loan.
Allocation of low cost permanent shops by the govt. agencies can be
helpful for the development of this sector. The study further
recommends that in order to reduce negatlve environmental effects
the location of this sector and sub-sector activities has to be
incorporated in the land use plans of the urban centres.
