Vol 22 | Issue 1 | 98-114 | March 2026
Tsepo Machela*
Department of Business Management,
Central University of Technology
Free State
Welkom, South Africa.a
tmachela@cut.ac.za
https://orcid.org/0000-0003-4704-9314
Dr Shame Mugova
Department of Accountancy, Finance and Economics
Birmingham City Business School
Birmingham City University,
Birmingham, United Kingdom
https://orcid.org/0009-0003-1093-407X
*Corresponding author
Abstract
The purpose of this study was to investigate inadequate branding as both a strategic limitation and a growth constraint on the growth trajectories of informal micro-enterprises within the South African textile industry. Focusing on necessity-driven entrepreneurs, this study examines how brand identity and market visibility impact performance in resource-constrained environments. A mixed-methods approach was employed. Qualitative insights were gathered from 50 purposively sampled micro-entrepreneurs to explore their perceptions of branding. Quantitative data from 384 respondents were analysed using logistic regression to assess the relationship between brand adoption and firm-level performance indicators. The findings revealed that branding is widely perceived as a non-essential expenditure among necessity-driven entrepreneurs, often subordinated to operational priorities. This leads to limited brand development, reduced consumer recognition, and constrained growth. Firms employing even minimal strategic branding, such as signage or consistent product presentation, reported enhanced market visibility and higher customer retention. The findings underscore the duality of branding, both as a growth driver and as a cost-related trade-off in informal markets. The study provides actionable insights for policymakers, National Governmental Organisations (NGOs), and development agencies aiming to increase microenterprise competitiveness. Low-cost branding interventions, shared design resources, and grassroots brand training programs can mitigate perceived costs and improve brand salience. This paper contributes to the branding literature by extending brand strategy theory to informal and undercapitalised market contexts. It offers empirical evidence on how micro-entrepreneurs in the informal economy conceptualise branding and its strategic value—an area largely underexplored in emerging market branding research.
Keywords: brand identity, informal entrepreneurship, microenterprises, necessity-driven entrepreneurs, market visibility, brand salience, strategic branding
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