Assessment of innovative entrepreneurship in the informal sector in Collins Chabane Local Municipality, South Africa

Abstract

The informal sector plays an important role in local economic development (LED), particularly in contexts where formal employment opportunities are limited. This study investigates innovative entrepreneurship within the informal street food sector in Malamulele Central Business District (CBD) in Collins Chabane Local Municipality, Limpopo Province, South Africa. The study examines innovation practices across the value chain and identifies barriers affecting entrepreneurial performance. A mixed-methods approach was employed, involving surveys, interviews, and observations with 40 informal street food vendors, supported by input from municipal stakeholders. The findings show that the sector is predominantly feminised, with women accounting for 87.5 per cent of participants, most of whom are aged between 26 and 45 years. Despite limited infrastructure, financial exclusion, and weak institutional support, vendors demonstrated adaptive innovations in food sourcing, preparation, hygiene, and customer engagement. Key challenges include limited access to credit, inadequate storage and transport facilities, low digital literacy, and minimal formal support. The study concludes that integrating informal street food entrepreneurship into local economic development strategies can enhance livelihoods, reduce poverty, and improve urban food security.