Informal enterprises have a vital role in developing countries in generating employment for unskilled and as an extension of supply chain of resources where formal enterprises cannot operate viably. They are unable to access formal financial resources due to the liability of smallness and information asymmetry. Yet, they sustain in the highly competitive market and co-exist with large retailers. There is a literature gap exists to explain how informal enterprises use Resource Bootstrapping and Bricolage to overcome resource constrains and to meld available resources to a unique set competencies. The two parameters used to compare the performance of the retail shops are 'Revenue-Expense Ratio (RER) and 'Return on Investment (ROI)'. It is found that informal shops perform at par with large shops though the RBB strategies used by them are different. The informal enterprises will become formal once they gain competencies to grow beyond the set limits for registration.

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