Informality is a phenomenon characterized by socioeconomic factors arising as a work option to adverse living conditions. It is important to study because its existence is undeniable in all

societies of the world and in Ecuador has been especially increasing in urban areas so is the case in the canton Píllaro informality is highly developed in the commercial sector, with this study It aims to determine the characteristics and factors that promote the growth of informal trade in the downtown area also seeks to determine the level of impact on economic, social and environmental surroundings of the city so a descriptive research is designed, exploratory and aided by a correlational analysis the hypothesis in order to provide an analytical perspective of the importance of the transition from informal to formal contrasts.