90% of black-owned businesses are informal


Informal and formal sectors of the economy were interdependent such that separating them would be impossible, said Gauteng economic Development MEC, Lebogang Maile, at a workshop that brought together municipalities and informal traders. The workshop was aimed at finding permanent solutions to problems hawkers in Gauteng face.
Maile observed that informal traders were significant consumers of formalised businesses’ goods and services.
“The informal sector is one that is largely survivalist and thus mirrors the vast challenges that face our economy, he said”
The department of trade and industry estimates that 90 percent of formal small businesses are white-owned, while 90 percent of black-owned businesses are informal. Around two million people in Gauteng are believed to be employed in the informal economy.
“The informal sector has a very prominent role in the economy of Gauteng. Hence, the improvement of the conditions and circumstances of informal traders in this province is a pivotal aspect of the agenda to radically transform Gauteng and its economy,” Maile said.

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