Introduction

The informal business sector is a critical driver of economic activity in developing nations, particularly within the BRICS+ countries and the Global South. This sector provides opportunities for employment, innovation, and economic inclusivity, serving as the backbone of many local and national economies. Its flexibility and responsiveness to changing economic conditions make it invaluable in addressing socio-economic challenges and fostering resilience, particularly in marginalized communities where formal employment is scarce (ILO, 2023). Unlike its formal counterpart, the informal sector is often characterized by its adaptability, enabling it to respond quickly to societal needs and operate effectively in areas where formal structures fail to reach. Despite its significant contributions, the informal sector remains underexplored, with limited data capturing its full impact on Gross Domestic Product (GDP), innovation, and societal well-being. This gap hinders the development of policies that could maximize its potential and address its vulnerabilities (World Bank, 2022).