Informal economies occur worldwide and are indicative of the development process of a country. The purpose of the study is to look at informal markets and to debate whether informal markets can improve the social well-being of traders. Based on a selection of cases of informal markets worldwide and fieldwork done in a market in Thohoyandou, South Africa, the resourceful value of social capital is re-examined. Rising unemployment and poverty are major challenges for local governments in South Africa and a clear national strategy is needed to take advantage of the opportunities that informal markets have for urban communities. The Thohoyandou informal market demonstrates that social capital supports entrepreneurship, creativity and personal adjustment, which are important prospects for development. It is argued that integrated development in cities can be improved and sustained with the right government support and that the nature of g