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Purpose This study examines the role of family embeddedness as an informal institution that supports township entrepreneurs in South Africa during economic disruptions such as COVID-19 and persistent loadshedding. While previous research acknowledges institutional voids in informal economies, limited attention has been paid to family networks as alternative economic structures that facilitate business resilience. This study explores how financial, operational, and emotional family support sustains informal businesses in times of crisis. Design/methodology/approach A qualitative research design was adopted, utilizing 30 semi-structured in-depth interviews with informal entrepreneurs operating in Soweto. A snowball sampling approach facilitated access to participants, ensuring trust in a low-trust environment. Data was analyzed using thematic analysis, following a structured coding process to identify patterns of family support in business survival and adaptation. Findings The findings reveal that family support provides both economic stability and resilience to township entrepreneurs. Financial assistance helped businesses sustain operations during crises, while emotional and operational support reinforced entrepreneurial persistence. However, some entrepreneurs faced pressure to extend financial support to extended family members, sometimes at the expense of business reinvestment. This highlights the dual nature of family embeddedness—both enabling and constraining entrepreneurship. Research limitations/implications The study focuses on a single township, limiting generalizability. Further comparative studies are needed. Practical implications Understanding family support mechanisms can help policymakers design interventions that strengthen informal business resilience. Social implications Strengthening family-based support systems can enhance socio-economic stability in township economies. Originality/value This study advances institutional theory by conceptualizing family networks as informal substitutes for weak formal institutions in township economies. It contributes to literature on informal entrepreneurship by emphasizing micro-level family dynamics in crisis adaptation.
Felzensztein et al. (Mon,) studied this question.