Contribution of the informal economy at Thabo Mofutsanyane District Municipality

F. P. Mothamaha () and K. Sibanda ()

Entrepreneur’s Guide, 2025, vol. 18, issue 3

Abstract: This study aimed to delineate the contributions of informal businesses to the economy of the Thabo Mofutsanyane District Municipality in the Free State Province, South Africa. The study employed a quantitative research methodology. The study’s sample size comprised 333 respondents, chosen using the Conroy sampling table 1. A total of 333 questionnaires were distributed, of which 232 were completed and returned, yielding a response rate of 70%. A robust positive association has been demonstrated between skill development, poverty alleviation, and job creation. The study revealed that informal entrepreneurship significantly contributes to GDP, local economic growth, and serves as a source of livelihood, employment creation, income generation, and survival for informal entrepreneurs. Robust stakeholder involvement and the incorporation of the informal economy were recommended in this paper.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ahc:journl:y:2025:id:2133

DOI: 10.24182/2073-9885-2025-18-3-88-98

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