Urban development studies are oriented towards the development of business centers, relating to poverty, marginality, community powerlessness and the emergence of urban slums. This study, therefore, aims to examine and analyze shanty town management, based on socio-economic empowerment using qualitative and quantitative approach. Furthermore, data was obtained through observation, surveys and documentation and the results indicated that business-oriented development has a direct impact on the expansion of informal activities and slums. However, important findings showed development policies emphasizes capital owners and ignores marginal and poor urban communities, therefore, triggering the emergence of favelas in protected areas which fosters the progress of the informal sector.