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Informal Entrepreneurship Framework for Formalising the informal sector at Thabo Mofutsanyane District Municipality in South Africa

https://doi.org/10.24182/2073-6258-2025-24-3-87-100

Abstract

This study was carried out to develop an informal entrepreneurship framework that is ideal to integrate informal entrepreneurs into the main stream economy at the Thabo Mofutsanyane District Municipality in South Africa. Development of a framework that is suitable to be applied for the formalisation of the informal economy is necessary as the generic frameworks such as the OECD and ILO frameworks are perfect to be used in developed economies. Statistical results were carried out to determine the outcome of the framework. An exploratory factor analysis in principal component analysis was carried and the results supported the development of the informal entrepreneurship framework. It is however, imperative to develop the framework since formalisation of the informal sector is impossible without the aid of a feasible framework and regulatory policies and procedures. Legislative frameworks have to be also put in place to facilitate the integration of the informal sector.

About the Authors

F. P. Mothamaha

South Africa

Dr. Business Administration Management College of Southern Africa (MANCOSA)

Johannesburg



K. Sibanda K. Sibanda
Walter Sisulu University
South Africa

PhD Economics Department of economics

Mthatha



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Review

For citations:


Mothamaha F.P., K. Sibanda K.S. Informal Entrepreneurship Framework for Formalising the informal sector at Thabo Mofutsanyane District Municipality in South Africa. Scientific notes of the Russian academy of entrepreneurship. 2025;24(3):87-100. https://doi.org/10.24182/2073-6258-2025-24-3-87-100

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ISSN 2073-6258 (Print)