Lagos, Nigeria's economic hub, hosts a vibrant informal sector characterized by entrepreneurship despite regulatory constraints. Employed qualitative interviews with 50 entrepreneurs to understand their experiences, obstacles, and strategies for success within the sector's dynamics. Entrepreneurs identified regulatory compliance as a significant barrier (72% reported difficulties), while access to finance was perceived as less critical (48% cited this issue). Despite challenges, entrepreneurs demonstrate resilience and innovation in navigating informal market conditions. Policy recommendations are proposed to enhance their environment. Promote regulatory reforms that ease compliance burdens on small businesses, alongside financial inclusion programmes tailored for the sector’s needs.