Unveiling power in the shadows: A South African lens on women’s empowerment in the precarious economic activities

In South Africa, women’s empowerment in the informal economy is an approach to poverty reduction and a catalyst for economic development. The existing literature highlights persistent systemic barriers to economic development across different geographical contexts, as well as the challenges entrepreneurs, particularly women, face in accessing infrastructure, education, and finance. Such barriers are a limitation to the economic participation of women-owned businesses, regardless of the important role these businesses play in supporting communities and families. Therefore, the study sought to examine the effects of responding to these barriers and how appropriate responses can improve economic outcomes and empower women in the informal economy in South Africa. The methodology for this study was quantitative and used closed-ended questionnaires, where a 95% response rate was obtained. The results indicate that increased institutional support, improved access to education, and greater access to finance are associated with better economic outcomes and women’s empowerment among the women in the study sample who participate in the informal economy in Johannesburg, Gauteng, South Africa. These aspects minimise the barriers and enhance business success and financial independence. The study recommends that responding to such barriers entails adjusting socio-cultural attitudes and implementing interventions that are gender sensitive to realise the capabilities of women in the informal economy. Future studies might examine regional differences in empowerment. This study contributes to scholarship by providing empirical evidence on women’s economic empowerment in the informal economy within a South African urban township context.