Interviews were analysed by means of thematic analysis. A total of 15 semi-structured interviews were conducted with business owners in the retail informal sector, managers of big corporates in retail in the formal sector and government employees from various departments who were represented by those in relevant positions such as directors, heads of departments, regional and board members. ![]() The study adopted qualitative research methods to gain insights into describing and exploring the meaning research participants use to construct and interpret their world of reality, such as formalising the informal sector to stimulate economic growth in South African Townships. ![]() The lack of formalisation of the informal sector not only impacts the government for not being able to account for the sector, but it also creates barriers for those trading in the sector. While the informal sector is large and offers flexibility in employment, it is associated with low productivity and poor governance as traders in the informal sector are not obliged to register their businesses and therefore cannot make tax contributions. The informal sector is one that presents opportunities for making a positive contribution towards solving social problems that South Africa is faced with. ![]() After more than two decades of democracy, South Africa is still faced with challenges of unemployment, poverty and inequality.
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