The Interface of Law, Informality, and Small Business Growth in Magunje Growth Point,Zimbabwe

Abstract

This study examined the interface between law, informality, and small business growth in Magunje Growth Point, Zimbabwe. Guided by the interpretivist research philosophy, the study adopted the qualitative research design to explore the lived experiences and perceptions of participants operating within informal and semi-formal business environments. The study participants, were small business owners, employees, municipal officials, and labour officers, drawn from retail trading, agro-dealing, services, and micro-manufacturing. A purposive sampling strategy was employed, and data were collected using a semi-structured interviews and analysed thematically. Findings indicate that although Zimbabwe’s legal instruments, including the Labour Act Amendment of 2023, occupational safety and health regulations, and the Micro, Small and Medium Enterprises (MSME) Policy, provide a formal framework for enterprise development and the promotion of decent work, the majority of small businesses in Magunje operate informally and remain largely beyond the effective reach of regulatory enforcement. Key barriers identified include limited awareness of legal obligations, high compliance costs, weak institutional presence, and insufficient municipal support. Despite these challenges, opportunities exist in the form of simplified compliance mechanisms, decentralised business support services, and context-sensitive enforcement approaches that reduce regulatory burdens without undermining worker protection. The study concludes that bridging the gap between formal legal frameworks and the practical realities of informality is critical for fostering sustainable small enterprise growth in Magunje Growth Point.