Vendor’s views of the economic sustainability of formal versus informal marketplaces

This qualitative study investigates the economic sustainability of small, medium, and micro enterprises (SMMEs) in both formal and informal marketplaces within Johannesburg, Gauteng. Considering the UN SDG’s, 16 marketplace vendors – nine from informal and seven from formal settings, were interviewed to facilitate comparative analysis. The findings revealed that formal marketplaces tend to be more economically viable than informal ones, which struggle with issues such as police harassment, lack of proper documentation, understanding of regulations, insufficient infrastructure, and inadequate capital. The study aims to inform the national government, municipal authorities, and support organisations about these challenges of enhancing SMME economic sustainability, particularly in informal marketplaces. We found that social capital, strategic flexibility, market characteristics, and market experience influenced SME stability.