Research Report to Programme to Support Pro-Poor Policy Development in South Africa (PSPPD)

Abstract

This report documents research conducted on small-scale informal self-employment at the margins of the South African economy. Despite high levels of poverty and unemployment South Africa has, by developing country standards, comparatively low levels of informal economic activity. Economic informality is therefore not only an issue of theoretical interest, but also one of significant public policy salience. The research combined qualitative and quantitative inquiry to understanding the contribution of informal self-employment to the livelihoods of impoverished households, along with factors that enable and constrain informal it. These empirical questions were examined in relation to current state policies and programmes targeted at the informal sector. The report concludes with policy recommendations intended to enhance the ability of policy makers to support the livelihoods of impoverished South Africans.