A study identified the environmental and personal factors that promote or hinder the development of entrepreneurship in the informal sector in South Africa. A developmental perspective of informal businesses set forth in the literature supported the global approach chosen for the research. Information was acquired through indepth interviews with seven groups of respondents: informal business owners, customers, formal business owners, suppliers, financiers, representatives of business organizations, and municipal officials. Specific research aims were formulated for each group. Biographical descriptions of the group and/or descriptions of the business or association were developed. Informal business owners were surveyed regarding resources available in the immediate environment, perceptions of the type of customers that support the business, interactions with other businesses, and official recognition. Information collected from other groups focused on their perceptions of and interactions with informal businesses. Training implications of the findings were identified. A national training strategy for development of the informal sector and a structure of a separate training body for the informal sector were proposed. Guidelines regarding the training necessary to enable entrepreneurs in small businesses to start up, run, or expand their businesses in the informal sector were developed. (The report contains 129 tables and 13 figures. Fifty-one references are listed.) (YLB)