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Paper short abstract:

Insights on developing trends in the informal sector that the youth may draw from to broaden options low-income households have in terms of harnessing the digital landscape. Lessons from the study may help potential entrepreneurs make a living which may aid in reducing socioeconomic challenges.

Paper long abstract:

A cohort of female digital informal businesses in the beauty industry on X are offering convenient and quick access to goods and services to a pool of X users under the #GirlTalkZA: a digital market space initially established as a platform for mostly female X users to share beauty-related ideas. Operating with limited resources, these digital informal businesses are leveraging the on-demand economy tenets of a virtual marketplace to entice customers by uploading pictures of their products or services, the price, location (in some contexts)and contact details for keen buyers. Using observations and desktop research, the qualitative study sought to understand the conditions which enables digital informal businesses to flourish in South Africa. Findings revealed that higher smartphone absorption, reliable internet connection and access in addition to increasing social media usage are factors that contribute towards the prevalence of this niche form of informal work for voluntarists in Cape Town, Johannesburg and Gqeberha respectively. Enabling these businesses to reach a bigger audience reaching clients in different cities and provinces while operating with low operation costs in some cases with little to no start-up capital. The disadvantage of such work is embedded in the fundamental trait of informal work: there is no way to authenticate tne legitimacy of the business leading to distrust and hesitance from buyers in addition to inconsistent income which is common amongsts informal sector workers and participants of the on-demand economy.