Abstract: One of the major development concerns in recent years, particularly in sub-Saharan African countries, has been the rapid growth of urban population coupled with low industrial growth. This mismatch has led to high unemployment levels as most companies have either scaled down or completely shut down. High poverty levels have intensified in urban areas and this has facilitated the mushrooming of the informal economy such as vending, operating tuck-shops and various micro enterprises as an adaptation strategy to failing economies. This study took a micro-level approach by exploring the role of the informal economy as a source livelihood in the city of Bulawayo.