In the absence of economic activities in the  formal  sector,  unskilled,  poor  and  marginalised South Africans rely on  the  informal  economy and  government  cash  transfers for survival. The informal economy  due to its easy access  provides  various  economic generating activities for the poor in  South Africa. The structure of the  economy  favours  the  development  of  established  formal businesses that  meet the  minimum  standards such as registration. This business  development strategy can be traced back to apartheid    policies    that    prevented    black
states  that  small  business  remain critical  to  job creation and employment,  especially in  developing economies. However, in  South  Africa micro and small  businesses are not  achieving  the growth  for increased job  creation.  South  Africa,  compared  to other  emerging markets, has  low levels of  entrepreneurial  activity.