Urban Tanzania's informal sector is a significant but understudied component of its economy. A mixed-methods approach combining surveys, interviews, and case studies across various sectors in urban Tanzania. Informal sector businesses account for approximately 40% of urban employment and contribute significantly to local tax revenues, despite facing regulatory barriers and market distortions. The study highlights the resilience and importance of informal business practices within urban Tanzanian economies, emphasising the need for supportive policies that mitigate risks while fostering growth. Develop targeted support programmes tailored to meet specific needs identified in the study, such as access to financing and training opportunities.