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. Small businesses have highlighted that access to finance, market access, skills and networks and enabling environment are major constraints to growth.