However, due to the constraints in the absorptive capacity of the rural job sector, a rural informal sector that hosts the excess labour has formed over time. The rural labour market of Bangladeshi cities constitutes of two types of the market -- formal and informal. The size of the urban informal sector is, unfortunately, getting bigger with passing days. These women use this money for small home startups which falls under the informal sector. The overall informal sector gained a lot from the microfinance assistance as it helped a lot of people to start a new life.

Source: Dhaka Tribune May 02, 2019 09:22 UTC