This paper examines formative assessment as transformative border pedagogy in South African Business Studies classrooms. Framed by Giroux's border pedagogy theory, the study explores how teachers understand and implement formative assessment to enhance student learning. Through document analysis of learners' workbooks and semi-structured interviews with eight Grade 10 Business Studies teachers, the research reveals a significant gap between teachers' stated beliefs and classroom practices. While teachers acknowledge formative assessment's importance for identifying learning gaps and providing feedback, they primarily approach it as an administrative requirement rather than a pedagogical opportunity. Teachers face challenges including time constraints, administrative burdens, and student disengagement, which limit their ability to implement effective formative assessment practices. The findings indicate that teachers generally adopt transmission-oriented approaches to assessment rather than creating spaces for dialogue and critical engagement. This paper argues that reconceptualizing formative assessment through border pedagogy can transform Business Studies education by promoting meaningful dialogue, co-construction of knowledge, and critical engagement with business concepts. Recommendations include targeted professional development that strengthens teachers' theoretical understanding of formative assessment as transformative pedagogy while addressing practical implementation challenges within the Business Studies curriculum context.

Keywords: Formative Assessment, Border Pedagogy, Transformative Learning, Business Studies, Secondary Education.