Abstract
This technical research project falls into the sphere of local economic development (LED). Diverse perspectives have been advanced in defining LED and it has been shown that LED is a process of an inclusive nature. It is driven by a deep concern for nurturing and cultivating the utilisation of resources for the common good and competitive advantage. The study was carried out in Mulbarton, a suburban area located in the south of the City of Johannesburg metropolitan municipality (COJ), Region F. The aim of this study is to establish the role of the informal and formal family businesses in Mulbarton in respect of creating job stability. A survey was conducted with 20 respondents being interviewed and there was a 100% response rate. The findings revealed that formal and informal businesses have a relatively positive contribution towards job stability, as most family businesses experience relatively low average staff turnover and dismissal rates and involuntary resignations are low, despite lower revenue and salaries. Moreover, 45% of the family businesses have been operating for more than ten years and only 5% have operated for less than a year. Some recommendations are that family businesses ought to recognise and leverage the potential of job tenure to promote job stability. A hybrid ownership structure increases the effectiveness of family businesses. Family businesses need to capitalise on their comparative advantage in addressing labour-related matters effectively. Resilience strategies must be conceptualised to navigate crises such as the Covid-19 pandemic. Lastly, governments should be mindful of the impact of taxes on family businesses. In terms of policy considerations, the COJ should ensure that its LED strategy contains programmes and projects aimed at empowering and capacitating these local formal and informal businesses. Keywords: family business, job stability, informal and formal businesses, local economic development.