Author(s): TD Modirapula, D van Rooyen
This article focuses on how the informal economy is challenged, transitioned, and supported to contribute to local economic development (LED). The informal economy has become a sector where people have opened their businesses and found employment, which contrasts with the inability of the government to create sustainable jobs in the formal economy and a conducive environment for small businesses. Therefore, and more specifically, it aims to assess the approach of the Mangaung Metropolitan Municipality towards the informal economy and how this has impacted the livelihoods of those making a living in this sector. The article adopted a qualitative methodological approach, and data was collected through semi-structured interviews with 23 purposely selected participants. The participants included municipal and government officials, informal traders operating in the Central Business District of Mangaung, and those in the Batho location. Recommendations are presented on how the municipality can create an environment conducive for informal businesses to operate as industrial clusters that can help create jobs and reduce poverty and inequality, in line with the goals of the LED.