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DETERMINANTS OF ACCOUNTING PRACTICES AMONG STREET FOOD

VENDORS

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International Journal of Accounting and
Financial Management Research (IJAFMR)
ISSN(P): 2249-6882; ISSN(E): 2249-7994
Vol. 4, Issue 3, Jun 2014, 37-50
© TJPRC Pvt. Ltd.

DETERMINANTS OF ACCOUNTING PRACTICES AMONG STREET FOOD VENDORS

LAFORTEZA, JARED JAMES, MANALO, GAUDIOSE & TAN JOEL

University of Mindanao, Davao City, Philippines

ABSTRACT

This study aimed to determine the significant relationship of the level of accounting practices of street food
vendors in Davao City and demographic profile. Respondents were 30 street food operators; male and female of different
ages. The researchers employed a descriptive-quantitative design and developed a validated, self-construct questionnaire as
instrument. The sampling technique used was random. Data were gathered through survey and personal interview.
The statistical treatments used were frequency, mean and chi-square. The alpha was set at.05 level of significance.
Results revealed that the ratio of male to female vendors was 33 and 67 percent, of whom 47 percent have attained
secondary education, which suggests that women and high school graduates are becoming prevalent players in street
economy. The mean scores for age and years in street vending were 30 and two years respectively; inferring that most of
street operators are in mid-twenties and are relatively young in the business. The study found out that there is no significant
relationship on the level of accounting practices among street food vendors when analysed according to profile. The study
proposes that age, sex, educational attainment and years in business are not determinants of accounting practices.

KEYWORDS: Accounting, Street Food Vendors, Microenterprise, Quantitative Research, Descriptive Design, Davao
City, Philippines

INTRODUCTION

The microenterprises’ street food sector has significantly contributed to economic mobility and growth, poverty
alleviation and human capital development through the provision of employment opportunities, creation of alternative
income source and promotion of entrepreneurship among people (Jasra et al 2011; PinoyMe 2010; Dimas 2008; Fida 2008;
Gordon 2006)

The term “street vendor” is commonly used interchangeably with “street trader,” “hawker,” and “peddler” as
distinguished from vendors who operate in officially sanctioned off-street markets, which may be public or private
(WIEGO 2013; CEEO 2013). In some countries, street vendors are a subset of the category “informal traders,” which
includes people who trade from their homes. The Consumers International (2013) defined street food vendors as persons
who sell varieties of food ranging from cereals and fruits to cooked meats and beverages on streets and other kinds of
related goods in public spaces including sidewalks and alleyways. Muzaffar et al. (2009) and Hiemstra et al (2006) added
that vendors are commonly viewed in open spaces particularly in the cities that provide urban residents with affordable,
convenient and accessible retail options. Street vendors may have fixed stalls such as kiosks, and folding tables; they may
operate from crates, collapsible stands, or wheeled pushcarts that are moved and stored overnight (WIEGO 2013).
In Davao City, most vendors both food and merchandise sell from fixed locations along the busy landmarks and
amusement spaces such as parks, malls and the like, without a stall structure, displaying their products on cloth or plastic
sheets while others are mobile vendors walk or bicycle through the streets as they sell (CEEO 2013).

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38 Laforteza, Jared James, Manalo, Gaudiose & Tan Joel

Being the most visible and distinctive segment of the urban informal economy, the size and significance of street
vendors in most big cities of the developing world is indisputably measurable (WIEGO 2013). National statistics showed
that in African cities of Ghana, Bamako and Kenya, street traders form 14 percent, 40 percent and 85 percent, respectively
of the total informal employment. While vendors in specific Latin American capitals like Lima, Peru, account for about
9 percent; Bogota Colombia, 20 percent and Caracas, Venezuela, 5 percent of informal labor force. In Asia, street sellers
represent 3 percent of total non-agricultural employment in India and over 11 percent of total informal employment in the
Vietnamese cities of Hanoi and Ho Chi Minh City. Further, local authorities, NGOs and academics estimated that there
were about 90,000 street vendors in Dhaka, Bangladesh; 10,000 in Colombo, Sri Lanka; 100,000 in Bangkok, Thailand;
50,000 in Singapore; 47,000 in Kuala Lumpur, Malaysia; 800,000 in Seoul, South Korea; and 50,000 in Manila,
Philippines.

WIEGO (2013) suggested literatures explaining the reasons behind street vending. The “dualist” argued many of
the poor, street traders do so because they cannot find jobs in the formal economy. Meanwhile, the “voluntarist”
philosophy thought street selling offers a more flexible or otherwise attractive employment option than wage or salaried
work (Narumol 2006). The “legalist” school, however, saw it as a way to avoid the high costs of operating a formal
storefront business.

Street vendors particularly food operators face unique brands of livelihood threats (OSSREA 2006). The most
pressing and on-going risk is the likelihood that local authorities will harass them including forced removal, confiscation of
merchandise, and demands for bribes. WIEGO (2013) and Narumol (2006) described the routine occupational hazards
faced by street vendors including lift and haul of heavy loads of goods to and from their point of sale each day; improper
regulation of traffic in commercial areas, high exposure to pollutants and inclement weather; and working in a hostile
physical environment. Further, Bhowmik (2005) stressed the susceptibility of losses of vendors of perishable and seasonal
goods during economic pressures and market fluxes.

According to Gordon (2006), small enterprises like ambulant and transient street stores are managed by people
who neither obtained a formal education nor expose to business management trainings. In the study of Barte (2012), he
emphasized that education and formal training in the technical fields of business, particularly accounting, finance,
marketing, and law are essential to succeed in any business endeavour. In an article, OSSREA (2006) also held that
training showed a direct, positive effect on firm’s profitability. Meanwhile, financial knowledge through education
according to Cohen & Nelson (2011) introduces people to effective money management practices with respect to earning,
spending, saving, borrowing and investing. Similarly, Livengood & Venditti (2012) accentuated that financial education
equipped and empowered a person to make informed choices, avoid pitfalls and take appropriate actions to improve
present and long-term financial well-being. Atkinson & Messy (2012) added that financial literacy drives planned
expenditures and strengthened fiscal condition. Further, Barte (2012) held that financial mismanagement is the paramount
cause of most business failures.

However, despite these realities, street food vending businesses continue to flourish and thrive
(Muzaffar et al. 2009). With the large borrowings, unexpected expenses and meager working capital, it’s an exciting theme
to know how these entrepreneurs manage and account their business activities. Although street economies were already in
existence for years (Bhowmik 2005), no literature specific to food vendors has yet published to correlate personal
characteristics to accounting and business management practices. Thus, this study was conducted to determine the

Impact Factor (JCC): 4.4251 Index Copernicus Value (ICV): 3.0

Determinants of Accounting Practices Among Street Food Vendors 39

significant relationship of the accounting practices of street food vendors in Davao City in terms of recording business
transactions, accounting for personal expenses and financing capital through borrowings when analysed according to
personal characteristics of sex, age, educational attainment and years in street food vending. Further, to determine the local
industry condition of street food economy using the TOWS model (threats, opportunities, weaknesses and strengths).

Establishing the relationship, if any, between the peculiar accounting and management styles of these
entrepreneurs and personal demographics could help create a workable business management model and best practices
framework that other business operators can explore and duplicate. Results of the study could also help policy makers and
practitioners, the government and private institutions to direct research and strategic programmes that will address common
problems of the street food vendors, thus increase the cohort rate for this potent, emergent segment (PinoyMe 2010).
Further, knowledge generated from this research shall be an addition to the literature on street vending in the Philippines as
it promotes the exchange of information and ideas on critical issues besetting street vendors worldwide.

The results and findings of this study however, is delimited to merely indicative than conclusive because of the
small sample size factored into the analysis and the subjects are only concentrated on five identified areas. The inference
drawn can only hold true to this class of respondents.

METHODOLOGY

This study employed descriptive-quantitative design that intend to gather information concerning the current state
of the phenomena and to pronounce what exists with respect to variables or conditions present. Characteristics of the
variables were described and analysed to achieve the research objectives.

The research instrument was a validated survey questionnaire designed to obtain relevant data. It had two
versions; one in English and the other in “Bisaya”, the native dialect of respondents. Clarity, objectivity and sufficiency of
questions were the criteria in constructing the questions and points for discussion. Answers to surveys were confirmed and
enriched through personal interviews.

Respondents were 30 street food operators found in various designated vending areas by the City Council
Economic Enterprise of Davao including the Rizal Park, Osmeña Park, Quezon Park, Centennial Park and those around the
Davao City hall. The sampling method was random. Respondents were informed on the objectives of the study and were
given no incentives. The study was conducted during the month of May 2013.

The statistical treatments employed were the frequency, mean and chi-square. The mean and frequency were
utilized to analyse the profile of respondents and the level of accounting practices while the chi-square was used to
investigate the relationship between the profile and the level of accounting practices in terms of recording business
transactions, separate accounting of personal expenses; and financing capital through borrowing. The alpha was established
at.05 level of significance in accepting and rejecting the null hypothesis. The researchers went through an organised
process to ensure the quality of the paper. A title proposal was defended before a panel of seasoned researchers. After, the
survey questionnaire was developed and validated by experts. Next, the researchers obtained permission from the City
Economic Enterprise Office of Davao City before going through the actual surveys and personal interviews with target
respondents. Then, the results were tabulated and were prudently analysed and interpreted using the Statistical Program for
Social Sciences (SPSS) and under the guidance of a statistician based on the purpose of the study.

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40 Laforteza, Jared James, Manalo, Gaudiose & Tan Joel

RESULTS AND DISCUSSIONS

Table 1 presents the descriptive ratio of respondents according to personal profile. The average age of street food
operators was 30 years old. 40 percent of the respondents were between 21 to 30 years old. The youngest vendor aged 16
while the oldest was 58. The result controverted Chittithaworn et al (2011) and Narumol’s (2006) notion that age drives a
person to engage in serious and demanding endeavours like business. The older an individual becomes, the more interested
he or she is to getting involved in trading activities. Perhaps because of the maturity that comes with age. On the contrary,
Slavec & Prodan (2012) and Rastogi et al (2006) claimed that age has nothing to do with and should not be a factor to
consider when deciding to do business. They added that many entrepreneurs started doing business at a very young age
having varied motivations and influences. The generations of today are seen highly involved and engaged in many
socio-economic and political actions of society. In fact, modern tales of business successes are stories of young
entrepreneurs whose being audacious, risk-taker, creative and high-spirited make them be (PinoyME 2010).

Table 1: Distribution of Research Participants According to Characteristics

Descriptive Characteristics Frequency Percentage (%)
Age
Below 21 years old 6 20.00
21 – 30 years old 12 40.00
31 – 40 years old 6 20.00
41 – 50 years old 4 13.33
Over 51 years old 2 6.67
Sex
Male 10 33.33
Female 20 66.67
Educational Attainment
Basic 7 23.33
Secondary 14 46.67
Tertiary 9 30.00
Years in Street Food Vending
Less than 1 year 10 33.33
1 – 2 years 10 33.33
More than 2 years 10 33.33

Meanwhile, majority of the respondents were female totalling to 20 or 66.67 percent, doubling the number of the
male counterpart. The result agreed with the views of Ukenna & Monanu (2012); Stromberg (2011) and
Chittithaworn et al (2011) that females are shifting their role as active economic players from plain household managers.
Women are now passing over from housekeepers to entrepreneurs. In many countries, women represent the majority of
street vendors. In Africa, women constitute more than two thirds of street traders in the main cities of Benin, Côte
D’Ivoire, Ghana, Mali, and Togo, and more than half in Kenya, Madagascar, Senegal, and South Africa. Women also form
a majority of street traders in some cities in Asia and Latin America, including Hanoi, 79%; Ho Chi Minh City, 67% and
Lima, 65% (WIEGO 2013). Men, on the other hand, were not much engaged to street food vending because of the nature
of the activity. Cooking and store keeping are commonly handled by women as it is an extension of what the society
expected of them. Men handle a more physical and strenuous activities instead. In Lesotho, South Africa, most female
street vendors dealt with perishable goods. In Thailand, however, male category dominated the street food industry
(Narumol 2006).

Impact Factor (JCC): 4.4251 Index Copernicus Value (ICV): 3.0

Determinants of Accounting Practices Among Street Food Vendors 41

As with educational attainment, 46.67 percent of the respondents were college graduates while only one was not
able to enter into formal education. Articles by OSSREA (2006) and ALISON (2013) pointed out that successful
accounting and management practices of skilled and knowledgeable managers are vital for the continued success and
growth of any business undertaking. Chittithaworn et al (2011), Coleman (2004) and Watson et al (1998) also emphasized
that education plays a significant role to would-be and successful professional and entrepreneur. Jasra et al (2011) added
that the educational level of a manager impacts the performance and progress of a firm. Having the right skills, knowledge
and attitude will help increase the level of competence and readiness of a person to handle the demands of professional and
business life.

Results of this study however disputed formal education as the key factor to knowledge and skills acquisition.
Street food vendors revealed that their knowledge and skills in business, in general and in street food vending, in particular
were gained through self-taught, parents and fellow vendors and not on formal training. Nonetheless, majority of street
vendors have attended formal education of whom many were high school graduates and others were degree holders.
The study also discovered that street food vendors in Davao City have gone through advance schooling such that they have
other livelihood options apart from street vending. Some were employed while others engaged to driving and carpentry.

The respondents share equal rate in years of street food vending. They have been operating business in the
designated area for an average of 2 years. Some were just starting while others are sustaining. The WIEGO (2013)
documented that majority of vendors and their families rely on profits from street selling as the primary source of
household income. Others however trade on a part-time basis and as auxiliary income source. There were also factors
mentioned affecting the continuum of business operation therein. Among the reasons cited were the imposition of rental
fee, prohibition on putting permanent structure and the first-come basis policy of the government as provided in the 2005
Revenue Code of Davao. Vendors would tend to transfer from one area to another just to free from regulatory charges and
strict policies. Further, the threat of new entrants and competition is comparatively high because of the minimal capital
requirement and high return potential.

Table 2 shows the answers of research participants when asked of their accounting practices.
The variable-indicators include recording of business transactions, separate accounting of personal expenses and financing
capital through borrowing.

Table 2: Summary Responses on Business Management Practices

Accounting Practices Indicators Frequency Percentage (%) Descriptive Level
Recording of business transactions 17 56.67 Moderate
Separate accounting of personal expenses 20 66.67 Moderate
Financing capital through borrowings 18 60.00 Moderate

The result of the study revealed that there was moderate level of record keeping practices among the street food
vendors as 43.33 percent of the respondents do not journalize business activities on books but in mind instead, simply they
memorized. Respondents thought that bookkeeping entails impractical cost and for most of them, it is unreasonably tedious
and difficult to understand (Agyei & Kwame 2011; Wyk & Rossouw 2009). However, Lilyquist (2013) declared that one
disadvantage of not having books is the tendency for significant transactions and major finances left unaccounted and the
possible incurrence of employee fraud. This condition could lead business owners to false assessment and misplaced
economic decision.

www.tjprc.org editor@tjprc.org
42 Laforteza, Jared James, Manalo, Gaudiose & Tan Joel

Ballada (2012) underscored that recording of business transactions is essential regardless of form and size of
business enterprise. Barte (2012) and Birt et al (2012) considered record keeping as the fundamental financial skill and
source of economic information useful for economic decision. Becker (2005) stressed that the quality of information
premises the quality of decision and management performance. Lilyquist (2013) also thought that keeping records of daily
sales and expenses help business owners get tracked of its performance and facilitate proper accounting and reporting of
resources. Weygandt et al (2013); Radu et al (2012) and Birt et al (2012) agreed that business owners can monitor the
efficiency of its operation, its financial condition and market position through records and transaction journals. They added
that recording and reporting of financial transactions can contribute to the value of an entity and future earnings.

Similarly, the study discovered that the level of separate recording of personal expenses was moderate.
Only 66.67% of respondents were observing the separate-entity concept. Several street food vendors were not accounting
their personal income and business income separately. They treated the business and their personal resources as one
(Agyei & Kwame 2011). Whenever they pay expenses, be it personal or business, all were taken from business funds.
Should there be income generated from other sources, same were all put into the business without proper recording and
accounting. This financial practice according to Lilyquist (2013) poses a threat for potential overstatement and
understatement of true income and expenses that may result to fiscal and operational inefficiency.

In accounting parlance, Ballada (2012) and Birt et al (2012) stressed out that the business and the owners are two
different, distinct personalities. Their individual activities should be recorded, accounted and reported separately for proper
evaluation and decision. The separate-entity concept dictates that whatever capital, be it money or property, put into by the
owner to the business becomes the property of the business and should be treated separately from personal properties
(Weygandt et al 2013; Ballada 2012). Any personal income and expense of the owner must not be merged with business
income and expense. Further, Birt et al (2012) accentuated that if the owner uses the entity’s funds for personal use, same
shall be treated as withdrawal from capital and not as expense. Even related party transactions or events affected by the
owner to his or her business must be property accounted and disclosed to ensure objective and fair reporting.

The results also confirmed that respondents exhibited a 60 percent, moderate level of financing capital through
borrowing. Studies of Rastogi et al (2006) and Fosberg (2012) discussed how industry type and firm size predict the
composition and maturity structure of debt financing. Smaller firms tend to transact with private, syndicated bank loan than
public debt (Kaya 2011). Slavec & Prodan (2012) however observed that self-efficacy and education have positive
influence with borrowings than age and sex. Majority of the street vendors generate their capital through debt and
leveraging (Fosberg 2012). They borrowed money from “loan-shark” lenders, friends, relatives and fellow vendors at an
interest. Some took it from personal savings while others had pawned their personal properties. It was noted that street food
vendors do not consider the risk associated with debt. The high interest rate and credit terms were not factored in the
financing decision. Many of the street vendors thought that it is already enough to get the capital needed and pay the debt
according to terms with a little profit in excess for working fund and household expenditures. This philosophy however,
according to Cressy (1996) is detrimental because debt mismanagement may result to chronic debt or over indebtedness
leading to financial inflexibility and organizational paralysis.

Getting access to market and capital are two fundamental issues that every businessman must deal with seriously
(Jasra et al 2011; PinoyMe 2010). In the study of Coleman (2004), most lenders prefer and are willing to grant loans to
educated, high degree borrowers than those who are not. He further, confirmed that in US, male businessmen have greater

Impact Factor (JCC): 4.4251 Index Copernicus Value (ICV): 3.0

Determinants of Accounting Practices Among Street Food Vendors 43

access and chance to securing a loan from banks due to strong personality and wealth of experiences.
Shim & Siegel (2011) highlighted that generating capital for the enterprise whether for start-up, for sustenance or for
expansion require prudence and analysis. He considered risk, return and control as criteria when making borrowings and
selecting the right debt-equity mix. Conversely, Cabrera (2012) mentioned that careful planning should be done as to how,
how much and when to finance the capital. She explained that when cost of capital is reduced, risks is minimized and thus,
create wealth to business owner. Chowdhury & Maung (2013) believed that increased borrowings improve internal
governance practices and operational efficiency.

Table 3 discloses the result of the statistical treatment done to the data collected using the statistical program for
social sciences (SPSS).The p-values when age is linked to recording of business transactions, separate accounting of
personal expenses and financing through borrowings were .476, .639 and .295 respectively. With the chi-square coefficient
of .05 as the minimum value of association or significance level, it suggested that age has no significant relationship or
association with the aforementioned indicators. Therefore, the null hypothesis is accepted.

Table 3: Statistical Data Analysis and Interpretation

Variables / Indicators P-Value Decision on Ho
Age
.476 Accept
Recording of business transactions
.639 Accept
Accounting for personal expenses separately
.295 Accept
Financing capital through borrowings
.470 Accept
Overall mean
Sex
Recording of business transactions .429 Accept
Accounting for personal expenses separately .273 Accept
Financing capital through borrowings .760 Accept
Overall mean .487 Accept
Educational Attainment
Accept
Recording of business transactions .194
Accept
Accounting for personal expenses separately .424
Accept
Financing capital through borrowings .321
Accept
Overall mean .313
Years in Street Food Vending
Recording of business transactions .659 Accept
Accounting for personal expenses separately .549 Accept
Financing capital through borrowings .830 Accept
Overall mean .679 Accept

There was also no significant relationship found between sex and recording business transactions with a recorded
p-value of .429. Similarly, between sex and separate accounting of personal expenses, the p-value was .273 which was still
considered insignificant. No significant relationship was also seen on sex and financing through borrowing with a p-value
of .760. All registered p-values exceeded the .05 level of significance, thus the null hypothesis is accepted.

The result on the third variable which is educational attainment showed no level of significance to street food
vendors’ accounting practices. The p-values for recording of transactions were .194, .424 for separate accounting of
personal expenses and .321 for financing through borrowing. Apparently, all p-values were higher than the .05 significance
level, thus the null hypothesis is again accepted.

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44 Laforteza, Jared James, Manalo, Gaudiose & Tan Joel

The last variable is years in street food vending or doing street selling. Recording of business transactions
accounted a p-value of .659 which was insignificant for an alpha of .05. For separate accounting of personal expenses and
financing through borrowing, the p-values were .549 and .830 respectively. All statistical values indicated that educational
attainment has nothing to do with how street vendors conduct their business.

The overall mean p-value for accounting practices when analysed to age is .470 which is greater than the
.05 minimum level of association or significant relationship threshold, thus construed to be not significant. As to sex and
educational attainment, the general mean p-values were .487 and .313 respectively which also meant not significant.
Meanwhile, the overall mean p-value for years in vending is .679 which was interpreted as not significant. Therefore, for
this class of respondents, the age, sex, educational attainment and years in vending have accepted the null hypothesis that
there is no significant relationship or strong association between the level of accounting practices and demographic profile.

The findings of the study held the theory of Slavec & Prodan (2012) that personal profile has nothing to do with
the person’s financial intelligence vital in making informed economic decision and disputed otherwise the viewpoint of
Chittithaworn et al (2011) and Narumol (2006) that age influences a person to do business. It also reverses the conception
of Sucuahi (2013) that sex predicts microenterprise’s success. The study opposed the conclusion of
Chittithaworn et al (2011) that personal profile affect and predict the profitability and mortality of a business enterprise.
The findings indicated that effective accounting practices affecting business success and continuity have nothing to do with
or cannot be associated to vendor’s age, sex or even years of experience. The results thus led the researchers to believe that
there are other factors besides demographics that have significant influence and impact on the success or failure of a
business as revealed in this class of respondents. Enabling variables like personal values, attitudes, other skills apart from
accounting and finance; and resources among others may at certain scale help vendors better their operations and
management style (Jasra et al 2011; Rastogi et al 2006).

Table 4 illustrates the TOWS analysis made on the street food vending sector of Davao City. It contains the
external threats and opportunities along with internal weaknesses and strengths as perceived by the vendors themselves and
observed by the researchers. Threats include strong market competition, high-risk to accidents, temporary occupancy and
regulated by local government. Among the highlighted opportunities were wide-ranging and diversified market, strong
support from local government, unrestricted food offerings, low barrier to new entrants and strong market attractiveness
and acceptance. Sector’s identified strengths were small capital requirement, high return potential, minimal knowledge and
skills needed and simple, manageable operations. Meanwhile, weaknesses include poor business management practices and
high dependence on debt financing among others.

Table 4: Diagnostic Report on Street Food Vending Sector Using TOWS Analysis
Threats (External) Opportunities (External)
• Wide-ranging and diversified market
• Strong market competition
• Strong support from local government
• High-risk to accidents
• Unrestricted on food offerings
• Temporary occupancy
• Low barrier to new entrants
• Regulated by local government
• Strong market attractiveness and acceptance
Weaknesses (Internal) Strengths (Internal)
• Small capital requirement
• Poor business management of vendors
• High return potential
• High dependence on debt financing
• Minimal knowledge and skills needed
• Low financial literacy and practices of operators
• Simple and manageable operations

Impact Factor (JCC): 4.4251 Index Copernicus Value (ICV): 3.0

Determinants of Accounting Practices Among Street Food Vendors 45

The TOWS analysis intends to develop effective interventions and program strategies that capitalize on the
strengths and take advantage of the opportunities identified while working on to improve the weaknesses and mitigate the
impact of threats.

Among the programs and strategies designed to help address the weakness and threats are: to conduct learning
sessions and capacity-building on financial literacy and business management (Sucuahi 2013; Barte 2012); to plot systems
on free access and scholarships to interested vendors to technical schools and learning institutions for skills acquisition and
enhancement; to offer inclusive access to broad-range financial services like micro-credit, insurance and savings facility to
qualified, potential vendors for capital start-up or link them to accredited organizations that lends money at a reasonably
lower interest rate (Barte 2012; PinoyMe 2010); to revisit policies and regulations for reduction on fees and dues imposed
upon the vendors and for development of clear-cut registration and eviction process (CEEO 2013; Dimas 2008); and to
enact laws protecting the interest and cause of vendors especially against street hazards and undue policies of urban
planning and governance (Barte 2012). For opportunities and strengths, intervention programs may include: to link street
vendors to the value chain and private entities for possible partnership especially during trade fairs, product shows and
expositions for economies of scale and integration to mainstream economy (Barte 2012); to promote microenterprise and
entrepreneurship at the barangay level through effective and structured microfinance (PinoyMe 2010; Dimas 2008); and to
incorporate the fundamentals of business and finance on secondary school instruction and curriculum among others
(Barte 2012).

The Local Government of Davao included specific provisions on the 2005 Revenue Code of Davao City to
regulate and monitor the activities of microenterprises in the metropolis especially the ambulant street vendors
(CEEO 2013). According to CEEO’s latest report, there were 212 enlisted street food vendors in the designated vending
areas of the locale and this number has continued to grow owing to industry’s favourable business landscape.

This scientific paper takes practical significance to the literature through generation of fresh perspectives and
validation of standpoints and theories on the subject being studied. Among others are: a. street food trading in Davao City,
Philippines improves the economic status and life quality of the vendors unlike in Lesotho, South Africa (OSSREA 2006);
b. women are more aggressive and empowered players on street economy than men (Ukenna & Monanu 2012;
Stromberg 2011); c. the low cost of operation and flexible hours make street vending an attractive option for poor women
(WIEGO 2013); d. statistics of street traders in Davao City are available at the City Economic Enterprise Office, the unit
in-charge of regulating and monitoring the operations of street traders in designated areas or “place of work” unlike in
other countries; e. street vending serves as a refuge occupation where low barriers to entry make it possible to earn a
subsistence income; f. street vendors are less productive in unstable, hostile environment where rules are irregular and
unpredictable just like any other formal business operators. Lastly, this inquiry contributed to the provision of direction for
future researchers to explore the areas or elements not covered by the study.

CONCLUSIONS

Based on the foregoing results, the paper proposes that personal characteristics do not determine or predict
accounting practices among street food vendors. The profile showed no statistical significance when linked to the level of
accounting application in everyday business operations and management. Accordingly, success or failure of business
undertaking is a function beyond plain demographics. It could be attributed to or influenced by other variables like
personal values, attitudes, capital resources and other skills apart from accounting and finance.

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46 Laforteza, Jared James, Manalo, Gaudiose & Tan Joel

The study findings also suggest important implications of impartial and effective policies and mechanisms in the
development and sustainability of this emerging economy. The high potential of street food vending as an alternative
livelihood for those who cannot or have difficulty penetrating the mainstream labor and commercial market could be one
powerful solution to fight poverty and improve the quality of life of those underprivileged members of the society. While
street food trading is perceived to be just fleeting and the most vulnerable enterprise to capital restraint and financial
mismanagement which could lead to bankruptcy and dissolution, the government and private institutions are but
challenged to create an environment and opportunities where policies, facilities and systems are fair, supportive and
accessible to all vendors, thus allow them to learn, succeed and grow as distinctive entrepreneurs.

REFERENCES

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African Journal of Business Management. Vol. 5 (10), pp. 3781-3793. Retrieved from
http://www.academicjournals.org/AJBM on February 28, 2014

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