IMPACT OF THE INFORMAL SECTOR ON THE CURRENT ZIMBABWEAN ECONOMIC ENVIRONMENT

The paper sought to investigate the economic impact of the informal sector in the Zimbabwean economy. It was discovered that the informal sector is very significant in its contribution to the development of the Zimbabwean economy. However the small entrepreneurs find difficulties in their operations because of the lack of capital and collateral. Given their significance in the economy, the paper suggests that these businesses should be assisted by the relevant stakeholders to graduate from informal to formal sector. This will enhance rapid economic growth.