December 4, 2025Open Access

From crisis to survival: how informal enterprises harness the power of innovation

Key Points

Innovation emerged as a key strategy among informal enterprises to navigate crises, including the COVID-19 pandemic.
Research highlights the significant role of innovation capabilities in helping vulnerable informal enterprises cope with economic challenges.
Analysis focuses on the informal enterprise sector in Mpumuza, highlighting their response mechanisms during crises.
These findings indicate that supporting innovation can enhance resilience in informal enterprises facing repeated crises.

Abstract

Based on recent research measuring innovation in the informal sector in Mpumuza, KwaZulu-Natal, this policy brief provides fresh insights into how informal enterprises turn to innovation in response to crisis events. While the COVID-19 pandemic is a crisis that has engulfed the whole of society, it is akin to the personal and economic challenges that vulnerable informal enterprises experience repeatedly. Their experiences and innovation capabilities thus hold value in the current policy context.

From crisis to survival: how informal enterprises harness the power of innovation

Key Points

Abstract

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