The perceptions of informal entrepreneurs on the impact of formalisation in Cosmo City, Johannesburg

Abstract

This study explored the perceptions of informal township entrepreneurs in Cosmo City, Johannesburg, on the impact of formalisation, factors hindering them from formalising, and the support required from the government for them to transition. Utilising an inductive, qualitative approach and a semi-structured interview guide, in-depth interviews were conducted with 16 participants operating informally across diverse industries within the informal sector. Through thematic analysis, key themes emerged from the participant’s experiences. The findings highlight the positive perception that informal township entrepreneurs have about formalisation. Despite all the structural challenges inhibiting the participants from formalising, the study found that the rest of the hindering factors were solely in their control. This study underscores the influential role policymakers have in enabling informal township entrepreneurs to formalise their enterprises.