Exploring Perceptions of Street Traders About Transitioning From Informal to Formal Sectors in Durban's Central Business District, South Africa

Abstract

In developing countries like South Africa, the informal sector plays a crucial role in providing employment opportunities for people are not able to secure formal jobs or establish registered businesses. This undocumented sector accounts for over 65% of the total employment in developing economies. The purpose of this research is to investigate the formalisation experience of informal traders in Durban's central business district, South Africa. Using snowball sampling, the structured interview strategy was used to acquire qualitative data. After completing twelve interviews with informal traders, data saturation was reached. The data was analysed using content analysis. After data analysis, the study revealed that informal traders faced significant challenges in the formalisation process. These challenges were organized into three main themes: lack of support from the municipality, limited access to information on formalisation procedures and their perception that the formalisation process to be expensive and beyond their financial capabilities.