GGGGG GGGGG

“A STUDY ON THE PROBLEM AND CHALLENGESFACED BY
UNORGANIZED
TRADING SECTOR WITH SPECIAL REFERENCE TO
MANNARKAD MUNCIPALITY”
PROJECTREPORT
Submitted to
UNIVERSITYOFCALICUT
In Partially Fulfillment Of The Requirement For the Award Of Degree of
BACHELOROF COMMERCE
B.COM COMPUTER APPLICATION
Submitted by
MOHAMMED SALIH VT
Reg No: KIAVBCM084
Under the guidance of
Mrs. LATHA K
Assistant Professor
DEPARTMENT OF COMMERCE AND MANAGEMENTSTUDIES

MESKALLADICOLLEGE,MANNARKKAD
Re-Accredited by the NAAC with A+ Grade
Mannarkkad college Po, Palakkad Dist, Kerala
2023-24
MESKALLADICOLLEGE,MANNARKKAD
CERTIFICATE FROMHEADOFDEPARTMENT
This is to certify that the project report entitled “A STUDY ON THE

PROBLEM AND CHALLENGES FACED BY UNORGANIZED
MANNARKAD MUNICIPALITY” is bonafide record of work submitted by
MOHAMMED SALIH VT , Submitted in partial fulfillment of the requirement
for the award of DEGRE OF BACHELOR OF COMMERCE during the year
2023-24
Date:
Place:
Mrs.ASMABI K
HEAD OF DEPARTMENT
MESK ALLADI COLLEGE, MANNARKKAD
CERTIFICATE FROM THEGUIDE
This is to certify that the project report entitled “A STUDY ON THE

MANNARKAD MUNICIPALITY” is bonafide record of work submitted by
MOHAMMED SALIH VT , Submitted in partial fulfillment of the requirement
for the award of DEGRE OF BACHELOR OF COMMERCE during the year
2023-24.
Place:
Date
Mrs. LATHA K
( GUIDE)
DECLARATION
I hereby declare that the project work entitled “A STUDY ON THE

MANNARKAD MUNICIPALITY” Submitted in Partial fulfillment of the
requirement for the award of the DEGREE OF BACHELOR OF
COMMERCE, Calicut university is a record of original work done
by me under the guidance of Mrs.LATHA K
I also declare that it has not been submitted by me or any body for the award of any
other degree or diploma of any University of Institution earlier.
Place: MOHAMMED SALIH VT

Date: Reg.No: KIAVBCM084
ACKNOWLEDGEMENT
In connection with the project report, this is a part of Bachelor of Commerce

Degreecourse of university of Calicut. First and foremost let me sincerely thank
almighty for the greatest completion of my project work.
My heart full gratitude to Dr.Rajesh.C principal in charge of our college for

having permitted to do this project.
I wish to express my profound gratitude to Mrs. ASMABI.K (HOD of

Commerce & Management studies )for her valuable guidance.
Is in cerely thanks Mrs. LATHA K my project faculty guide for his valuable
instructions, guidance, encouragement and support through out the time of project.
I would like to express my sincere thanks to all the faculty members ofthe
Department of commerce for giving inspiration, timely guidance and
encouragement.
I also express sincere thanks to all my dear friends who helped me with valuable
suggestions and encouragement.
Place: MOHAMMED SALIH VT

Date:
TABLE OF CONTENTS
CHAPTER CONTENTS PAGE
NO.
1 INTRODUCTION 1-6
2 REVIEW OF LITERATURE 7-11
3 THEORETICAL APPROACH 12-18
4 DATA ANALYSIS AND INTERPRETATION 19-33
5 FINDINGS, SUGGESTIONSAND 34-36

CONCLUSION
BIBLIOGRAPHY 37
APPENDIX 38-40
LIST OF TABLES AND CHARTS
NAME OF THE TABEL

CHART PAGE
NO NO
FIGURE SHOWING THE NUMBER OF MEMBERS
1 THE FAMILY OF TRADERS 19
FIGURE SHOWING MONTHLY EARNINGS OF

2 INFORMAL TRADERS 20
FIGURE SHOWING EDUCATIONAL

3 QUALIFICATION OF UNORGANIZED 21
FIGURE SHOWING THE FACTORES WHICH LEAD

4 THE RESPONDENTS TO SELECT UNORGANIZED 22
TRADING
FIGURE SHOWING THE METHODS BY WHICH
5 UNORGANIZED TRADERS ATTRACT THE 23
BUYERS
FIGURE SHOWING THE PLACE OF BUSINESS OF
6 UNORGANIZED TRADERS 24
FIGURE SHOWING THE PRICING POLICY OF

7 UNORGANIZED TRADERS 25
FIGURE SHOWING WHETHER THE

UNORGANIZED TRADERS ARE ABLE TO MEET 26
8 THEIR EXPENSE OUTOF THEIR INCOME OR NOT
FIGURE SHOWING TYPE OF CUSTOMERS THE

9 TRADERS PREFER 27
FIGURE SHOWING WHETHER FACE ANY
COMPETITION OR THREAT FROM ORGANISED
10 TRADING SECTOR 28
FIGURE SHOWING PERMISSION FROM LOCAL

11 AUTHORITIES 29
FIGURE SHOWING HAVING ALLOWANCES OR

12 SUBSIDIES FROM THE LOCAL BODIES 30
FIGURE SHOWING CURRENT SATISFACTION

13 LEVELOF UNORGANIZED TRADERS 31
FIGURE SHOWING ANY THREAT FROM

14 AUTHORITIES LIKE PANJAYATH OR 32
MUNICIPALITY, LIKE WISE
FIGURE SHOWING DIFFICULTIES TO PURCHASE

15 PRODUCT FROM WHOLE SALE MARKET 33
PROJECT REPORT 2024 UNORGANIZED TRAIDING SECTOR
CHAPTER I
DCMS MES KALLADI COLLEGE

1.1 INTRODUCTION
Street vendors have an important role in the unorganized economy by making a
significant contribution. Due to the inception capacity of the modern organized sector
to provide employment for the rapidly expanding labor force, many people try to
create or find income opportunities. Over 25% of the workers globally operatein the
unorganized sector due to the constant influx of people from the rural areas, the
unorganized economic activitiesmobilize 30 % to 80% of the work force especially
in the urban regions of the developing countries. The shortage of productive
employment opportunities in the unorganized sector and the employment growth
which takes place at a far lower rate compared to the growth in the labor force leads
to the emergence of the unorganized sector is largely attributed to the divergence
between the growth in urban population and employment growth in unorganized
economy. The increase in urban population with limited income to meetthe needs of
housing, food and clothing of themselves and their families generates asignificant
demand for a variety of products and services which can be supplied by unorganized
sector vendors
Vending as a profession has been carried out all along in the non-history and it has
been an integral part of both urban and rural culture in the historical contexts the
unorganized vending was viewed with suspicion and was seen to lead to the
obstruction of pavements and blocking pedestrian flows traffic congestion, crime,
large volume of garbage, dirt and often unsanitary waste products leading to
unhygienic environment, health hazards and general deterioration and dilapidation
of the important areas of the city. The Unorganized vendors were also seen to force
unfair competition to organized traders as well as to create a poor impression about
the city for outsiders.
The street and pavement vendors from a substantial proportion of the in

unorganizedsectors who earns their livelihood through vending. They have flexible
DCMS 1 MES KALLADI COLLEGE

vending hours ensuring the economic viability and dynamism of the city. It also
creates employment there by alleviating the hardship of employment. According to
Ministry of Urban Development and poverty alleviation, there are over one crore
vendors in India contributing to over 50% of countries savings and 63% of the GDP
comes from vendors.Depsites these the vendors are seen as 'encroachers and as
'public nuisance' who obstruct traffic.
Very many vendors show perseverance in dealing with authorities of Municipal
Corporation, traffic police, cops, dealing with law and order, regional development
authorities, district administration authorities, local governing bodies, local touts,
single- handedly with an odd and awe inspiring mixture of confidence and weakness.
The concept of the ‘Unorganized sector' became established in terminology of

development theory and policy at the beginning of the 1970.Unorganized sector, the
term used it principally to describe a variety of form of self-employment, mainlyon
the fringes of the organized of 'modern' part of the economy and sometimes
technically illegal.The discovery' of the Unorganized sector suggested that the
problem in developing economies was not so much one of unemployment or of
under employment but rather of the low productivity of the work carried on by large
number of people. The understanding of the dimensions and structure of
unorganized sector employment has been enhanced through the large number of
studies undertaken on specific branches of economic activities. Oriented to specific
themes the studies clearly establish that a significant part of the urban labor force is
engaged in unorganized activities and highlight the entry of variable groups - the
migrants, illiterate or semi-literate, unskilled, women and children from the rural
areas

1.2 STATEMENT OF THE PROBLEM
Street vendors are integral part of urban economy around the world offering easy
access to a wide range of goods and services in public spaces, but they are still an
unorganizedsector. An organized sector is the sector without their voice in front of
the public. Street vendors, peddlers etc. are the group directly interacts with the
public during their trade, but they are the group always facing number of problems
from the society and the organized sector. Due to the scattered nature of the group
and the lack of finance and other problems they are always become unorganized.
They are facing problems from different aspects like society, family, finance, lack
of profit, bargain nature of the customers, from authorities, police etc.so this area of
study becomes very valuable to a person dealing with commerce andtrade. This
study concentrates on the problems and insecurities faced by the Unorganized
trading sectors in Mannarkad municipality.
1.3 OBJECTIVES OF THE STUDY

 To study the problems and insecurities faced by unorganized
tradingworkers.
 To study the socio-economic factors of unorganized sector workers.
 To study the problems faced by Unorganized trading sector compared to

organized trading sector
 To study the factors influencing unorganized trading sector
1.4 NEED OF THE STUDY
To solve the problems faced by the unorganized trading sector of mannarkad

Municipality

1.5 SCOPE OF THE STUDY

The present study is to understand the problems and insecurities faced by
Unorganized trading sectors with special reference to Mannarkad municipality.
This study is mainly focus three major towns such as Palode, Nattukkal, and
Karinkallathaani in Mannarkad municipality. This study will help to understand
the problems faced by unorganized traders and to suggest enough remedies.
This study will help the government for future policy making. This study will
help the students and researchers for their future studies.
1.6 RESEARCH METHODOLOGY
Research is a systematic study of the problem and identification of the solution of

that specific problem.
1.6.1 RESEARCH DESIGN
The data was convened, purposeful and descriptive in nature.
1.6.1 POPULATION
200 t r a d e r s of ma n n a r k a d mu n i c i p a l i t y are randomlyselected for the

study.
16.2 SAMPLE UNIT
This study is conducted on mannarkad.
1.6.3SAMPLE TECHNIQUE
The sampling method adopted in this study is convenience sampling method.

1.6.4 .SAMPLE SIZE
50 traders Mannarkad municipality are randomlyselected for the study.
1.7 METHOD OF DATA COLLECTION
Methodology describes the method used to make the research in order to
findthe fact and solve the problem systematically.
SOURCES OF DATA COLLECTION
The data used for the study is primary data and secondary data.
Primary data
Primary data is collected from unorganized vendors through
questionnaire andinterview.
Secondary data
The secondary data collected from earlier research records,
web site,magazine, books, etc.
1.8 DATA TOOLS USED FOR DATA INTERPRETATION
AND ANALYSIS
There are various statistical tools which are used in analyzing data. The
following tools are used for representing and analyzing data. Data
representation:
1) Table
2) Diagram
3) Percentage
4) chart

1.9 DURATION OF THE STUDY
The study is conducted for 21 days
1.10 LIMITATIONS OF THE STUDY

 The study was bound by limited sample size.
 Unorganized sellers are scattered over Mannarkad municipality.So, data

collection was difficult one.
 The reluctance of unorganized traders to respond.
 small and scattered units that are unregistered and do not follow government
rules and regulations
 workers working in unorgansied sector get few wages
 There is no provision for over time, paid leave, holidays, leave due to
sickness etc
 Employment is a subject to high degree of insecurity

CHAPTER II

REVIEW OF LITERATURE
Right from early seventies a lot of research has been undertaken in the field of
unorganized sector in general and unorganized manufacturing sector. The available
literature shows that the researchers have chosen three fields in particularize.
Theoretical studies, micro level case studies and macro level empirical studies. In
order to understand its nitty-gritty, we shall have to comprehend the available
literature. In the case of unorganized sector, enough literature is available regarding
the scope, concept, usefulness and applicability of this sector. Some of these studies
are given here in chronological order: -Weeks (1975) used an input- output
framework method to analyze the determinants of growth of output and
employment in the unorganized sector particularly with reference to the less
developed countries.
In order to simplify he divided the economy into unorganized, agricultural, private

organized and government sectors. During his research he concluded that the
changes in the aggregate demand, technical changes and changes in consumer tastes
are largely responsible for affecting output and employment in the unorganized
sector. According to him unorganized sector is a dynamic and a low wage sector
whose development requires concrete development policies ending special
privilege to the organized sector and greater emphasis on development of
agricultural field and encouraging the organized units to grant sub- contracting to
unorganized sector units. This would lead to strengthening the unorganized sector.

Chandola (2002) studied the nature of garment manufacturing units and

women workers in unorganized segment of these units situated in Luck now,
Kanpur, Varanasi and Delhi. The emphasis was that the industry practiced wage
exploitations, the production process was fragmented and decentralized. The
decentralization of unorganized sector was done with a view to have cheap labor
and escape government regulations. The women worked as piece rate workers;
there was easy entry into the labor market which forces them to seek
employment as unorganized labor leading to exploitation.
Sundaram (2003) drew almost same conclusions with respect to other authors in
this field. He projected that, women workers in unorganized sector were generally
illiterate, had high unemployment rate as compared to men in this sector and
worked under exploitative working conditions. It was also brought forward that
these women were sliding down to low paying or unpaid work, which worsened
their conditions. The factors responsible for the prevailing conditions of women of
unorganized sector were poverty, unequal distribution of income, illiteracy,
disparity and male dominance.
Kundu and Lalitha (2003) studied the decline in the share of unorganized sector
in general and urban unorganized sector in manufacturing sector employment, in
late eighties and early nineties. Using NSSO data and considering OAMEs and
NDMEs as the two components of the unorganized manufacturing sector, they
showed that the growth profile in the unorganized manufacturing sector has shown
two opposite trends. While during 1978-84there was a significant rise in both
employment and number of enterprises whereas the period of 1984-89 saw a
complete reversal of the trend. It is argued that the growth of the units or
employment for that matter does not show any correspondence with improvement
in their productivity.

Nandal Santosh (2004) conducted a study on Women workers in construction

industry in Haryana. Most of the workers in construction industry come from other
states and constitute a higher percentage of female. The primary objective of this
paper was to focus on the socio-economic problems being faced by a section of the
female workers in the construction industry. They were actively involved in
economic activities for survival, yet bearing and rearing of children remain their
first responsibility. The study was conducted in six districts of Haryana (Rohtak,
Sonipat, Bhiwani, Hissar, Panipat and Karnal) where the total number of employed
workers was estimated to be 21,000.2
Mathew K. Tinu (2008) conducted a study on the role of social movements in

organizing the unorganised sector workers LEARN, Dharavi. This study tried to
detect the problems as well as the prospects entailed in systematizing the
unorganised workers and recognize the part social movements can play in
regulating the unorganised sector workers. The intention was to appreciate the
troubles and tribulations of the unorganized workers in general and women
workers in particular in the state of Maharashtra with Dharavi as the center of
attention. Qualitative methodology of research was used to analyse the conditions
of informal sector workers. This was conducted through interview methods, which
helped in identifying the positive impact of unions on the workers. This also gave
an insight into the obstacles faced by the unions in organising the informal sector
workers. In addition to participant observation, newspaper articles, books, journals
and various government reports were referred as secondary data.
Mukherjee Piu, Paul G D Bino, Pathan J.I (2009) conducted a study on the
migrant workers’ working condition in informal sector. The objective of the study
was to understand their socio-economic status in urban India. The aim was to
explore whether migration to urban areas had substantially altered their working
and living conditions as also the labor market and human development

issues. The study reviewed how the migrants survived the expected deficiencies
and dispossessions and also the role of labor brokers in this arena. The research
examined the seasonal construction workers and ‘naka’ workers in Mumbai and
concluded that there was no social security and sustained human development.
Tous Sophorn , Veasna Noun(2009) conducted Study on ‘Living and Working

Conditions of Domestic Workers in Cambodia’. In Phnom Penh, the study on
working conditions of domestic worker covered four districts and a total of 30
Communes. Information was collected from members of 9 Trade Unions. Main
findings of the research were: Employing someone to undertake domestic
households’ chores is a long time practice in Cambodia, associated with gender
stereotypes on the traditional role of women in the household as caretakers and
caregivers. Domestic work is still considered in the Cambodian culture as a form
of servitude rather then as real “work”. The results of the study confirm the need
for action to promote and protect the rights of domestic workers required.
Kimera Musooka Moses (2010) conducted a study on ‘Dignity of Workers in

Wakiso Town: Wakiso District’. The study contributed to the management theory
and practice by establishing the thesis that regard for workers‘dignity by the
tripartite partners (employers, employees and the government) is indispensable for
the improvement of the workers‘conditions. The study was conducted to change
the prevailing plight of workers. A combination of qualitative and quantitative
method was applied and data was collected via interviews, questionnaires,
observation and literatures review. The study relied on both secondary sources and
government publications related to economic policy and labour rights. Data was
summarized and coded into themes and sub- themes from which conclusions and
recommendations were drawn. This study found that the lack of awareness, less
salary, late payments, underemployment, violence against employees, dignity and
rights, casualness, lack of freedom of association and poor working relations
account for the poor condition of

workers. Due to the limitation and the scope of the study, these issues are
recommended for further research.
Paul G D Bino, Datta Susanta, Murthy R Venkatesha (2011) conducted a study

on Working and Living Conditions of Mumbai Women Domestic Workers. Here
primary data was collected from 1510 female domestic workers in Mumbai. Based
on the findings, the need to create a comprehensive social security system for
domestic workers in India, against the backdrop of working and living conditions
of labour belonging to this occupational category was highlighted. The study
covered themes such as basic demographic features, nature of services, work
profile of the domestic workers, access to social security, consumption of edible
items, consumption under PDS system, health, union awareness, time use,
household assets and liability, habitat, attitude of domestic workers towards gender
and domestic violence.
Remesh P. Babu(2012) conducted a study on ‘Rethinking Social Protection for India’s

Working Poor in the Unorganised Sector’. This study gave importance to social security.
The characteristics of unorganized sector were low wages, poor working/living
conditions, seasonality of employment, contractual employment, lack of social security
as well as welfare procedures, repudiation of rights and privileges. Consequently, the
sector has developed into “a competitive and low cost device to absorb labour which
cannot be absorbed elsewhere and any attempt to regulate and bring it into more
effective legal and institutional framework is perceived to be impairing the labour
absorbing capacity of the sector”

CHAPTER III

THEORETICAL FRAME WORK
DEFINITION OF UNORGANIZED TRADING SECTOR
The original use of the term ‘unorganized sector’ is attributed to the economic
development model put forward by W. Arthur Lewis, used to describe employment
or livelihood generation primarily within the developing world. It was used to
describe a type of employment that was viewed as falling outside of the modern
industrial sector An alternative definition uses job security as the measure of
organized, defining participants in the unorganized economy as those 'who do not
have employment security, work security and social security.” While both definitions
imply a lack of choice or agency in involvement with the unorganized economy,
participation may also be driven by a wish to avoid regulation or taxation. This may
manifest as unreported employment, hidden from the state for tax, social security or
labor law purposes, but legal in all other aspects. Edgar L. Feign has proposed
taxonomy for describing unobserved economies including the unorganized economy
as being characterized by some form of non-compliant behavior with an institutional
set of rules. Feignargues that circumvention of labor market regulations specifying
minimum wages, working conditions, social security, and unemployment and
disability benefits gives rise to an unorganized economy that deprives some workers
of deserved benefits while conveying undeserved benefits to others.
The term is also useful in describing and accounting for forms of shelter or living
arrangements that are similarly unlawful, unregulated, or not afforded protection of
the state. ‘Unorganized economy’ is increasingly replacing ‘unorganized sector’ as
the preferred descriptor for this activity. Unorganized, both in housing and livelihood
generation has often been a social ill, and described either in terms of what
participant’s lack, or wish to avoid. A countervailing view, put forward by prominent
Dutch sociologist Saskia Assen is that the modern or new ‘unorganized’
sector is the product and driver of advanced capitalism and the site of the most

entrepreneurial aspects of the urban economy, led by creative professionals such as

artists, architects, designers and software developers. While this manifestation of
theunorganized sector remains largely a feature of developed countries, increasingly
systems areemerging to facilitate similarly qualified people in developing countries
to participate
CHARACTERISTICS
The unorganized sector is largely characterized by several qualities: easy entry,

meaning anyone who wishes to join the sector can find some sort of work which will
result in cash earnings, a lack of stable employer-employee relationships, a small scale
of operations, and skills gained outside of an organized education. Workers who
participate in the unorganized economy are typically classified as employed. The type
of work that makes up the unorganized economy is diverse, particularly in terms of
capital invested, technology used, and income generated. The spectrum ranges from
self-employment or unpaid family labor to street vendors, shoe shiners, and junk
collectors. On the higher end of the spectrum are upper-tier unorganized activities such
as small-scale service or manufacturing businesses, which have more limited entry.
The upper-tier unorganized activities have higher set-up costs, which might include
complicated licensing regulations, and irregular hours of operation. However,most
workers in the unorganized sector, even those are self-employed or wage workers, do
not have access to secure work, benefits, welfare protection, or representation. These
features differ from businesses and employees in the organizedsector which have
regular hours of operation, a regular location and other structured benefits. The most
prevalent types of work in the unorganized economy are home- based workers and
street vendors. Home-based workers are more numerous while street vendors are more
visible. Combined, the two fields make up about 10–15% of the non-agricultural
workforce in developing countries and over 5% of the workforce in developed
countries.
While participation in the unorganized sector can be stigmatized, many workers

engage in unorganized ventures by choice, for either economic or non-economic

reasons. Economic motivations include the ability to evade taxes, the freedom to
circumvent regulations and licensing requirements, and the capacity to maintain
certain government benefits. A study of unorganized workers in Costa Rica illustrated
other economic reasons for staying in the unorganized sector, as well as non-economic
factors. First, they felt they would earn more money through their unorganized sector
work than at a job in the organized economy. Second, even if workers made less
money, working in the unorganized sector offered them more independence, the
chance to select their own hours, the opportunity to work outside and nearfriends, etc.
The unorganized sector was historically recognized as an opposition to organized
economy, meaning it included all income earning activities beyond legally regulated
enterprises. However, this understanding is too inclusive and vague, and certain
activities that could be included by that definition are not considered part of the
unorganized economy. As the international labor organization defined the unorganized
sector in 2002, the unorganized sector does not include the criminal economy. While
production or employment arrangements in the unorganized economy may not be
strictly legal, the sector produces and distributes legal goods and services. The criminal
economy produces illegal goods and services. The unorganized economy also does not
include the reproductive or care economy, which is madeup of unpaid domestic work
and care activities. The unorganized economy is part of the market economy, meaning
it produces goods and services for sale and profit. Unpaid domestic work and care
activities do not contribute to that, and as a result, are not a part of the unorganized
economy.

HISTORY
Governments have tried to regulate aspects of their economies for as long as surplus
wealth has existed which is at least as early as Sumer. Yet no such regulation has ever
been wholly enforceable. Archaeological and anthropological evidence strongly
suggests that people of all societies regularly adjust their activity within economic
systems in attempt to evade regulations. Therefore, if unorganized economic activity is
that which goes unregulated in an otherwise regulated system then unorganized
economies are as old as their organized counterparts, if not older. The term itself,
however, is much more recent. The optimism of the modernization theory school of
development had led most people in the 1950s and 1960s to believe that traditional
forms of work and production would disappear as a result of economic progress in
developing countries. As this optimism proved to be unfounded, scholars turned to
study more closely what was then called the traditional sector. They found that the
sector had not only persisted, but in fact expanded to encompass new developments. In
accepting that these forms of productions were there to stay, scholars and some
international organizations quickly took up the term unorganized sector (later known
as the unorganized economy or just unorganized), which is credited to the British
anthropologist Keith Hart in a1971 study on Ghana published in 1973.
In “The Underground Economies: Tax Evasion and Information Distortion” Edger L

Feign examined the economic implications of a shift of economic activity from the
observedto the non-observed sector of the economy. Such a shift not only reduces the
government’s ability to collect revenues, it can also bias the nation’s information
systems and therefore lead to misguided policy decisions. The book examines
alternative means of estimating the size of various unobserved economies and examines
their consequences in both socialist and market- oriented economies. Feige goes on to
develop a taxonomic framework that clarifies the distinctions between unorganized,
illegal, unreported and unrecorded economies, and identifies their conceptual and
empirical linkages and the alternative means of measuring theirsize and

trends. Since then the unorganized sector has become an increasingly popular subject
of investigation, not just in economics, but also in sociology, anthropology and urban
planning. With the turn towards so called post-Fordist modes of production in the
advanced developing countries, many workers were forced out of their organized sector
work and intounorganized employment. In a seminal collection of articles, The
Unorganized Economy. Studies in Advanced and Less Developed Countries, Alejandro
Ports and collaborators emphasized the existence of an unorganized economy in all
countries by including case studies ranging from New York City and Madrid to
Uruguay and Colombia
Arguably one of the more influential books on the unorganized economy is Hernando
De Soto El outro sendero (1986), which was published in English in 1989 as The Other
Path with a preface by Peruvian writer Mario Vargas Llosa. De Soto and his team argue
that excessive regulation in the Peruvian (and other Latin American) economies force
a large part of the economy into unorganized and thus prevent economic development.
Whileaccusing the ruling class of 20th century mercantilism, De Soto admires the
entrepreneurial spirit of the unorganized economy. In a widely cited experiment, his
team tried to legally register a small garment factory in Lima. This took more than 100
administrative steps and almost a year of full-time work. Feige's review of the Other
Path places the work in the context of the unorganized economy literature. Whereas De
Soto's work is popular with policymakers and champions of free market policies like
the Economist, some scholars of the unorganizedeconomy have criticized it both for
methodological flaws and normative bias.
In the second half of the 1990s many scholars have started to consciously use the term
"unorganized economy" instead of "unorganized sector" to refer to a broader concept
that includes enterprises as well as employment in developing, transition, and advanced
industrialized economies. Among the surveys about the size and development of the
shadow economy (mostly expressed in percent of official GDP) are those by Feige
(1989), and Schneider and Enste (2000). In these surveys an

intensive discussion about the various estimation procedures of the size of the shadow
economy as well as a critical evaluation of
the size of the shadow economy and the consequences of the shadow economy on the
official one can be found. The most recent survey paper on the subject reviews the
meaning and measurement of unobserved economies and is particularly critical of
estimates of the size of the so-called “shadow economy” that employ Multiple Indicator
multiple cause methods which treat the shadow economy as a latent variable.
STATISTIC
The unorganized economy under any governing system is diverse and includes small-
scaled, occasional members (often street vendors and garbage recyclers) as well as
larger, regular enterprises (including transit systems such as that of Lima, Peru).
Unorganized economies include garment workers working from their homes, as well
as unorganized employed personnel of organized enterprises. Employees working in
the unorganized sector can be classified as wage workers, non-wage workers, or a
combination of both.
PROBLEMS OR CHALLENGES
1. No Social security:The idea behind the concept of social security is that the state
shall be responsible for protecting its citizensagainst certain contingencies of life. The
basic principle of social security implies collective action by the community to help a
member against misfortunes and wants he cannot meet with his own resources. It is
based on business ethics “ideals of human dignity and social justice”.
2. No Compensation program: Introduction of different hazardous machinery, high
rise in construction, unguarded machinery, various toxic chemical, coal dust, lime dust,
blazes crude materials for synthetic generation leads quantities of tragic deaths of many
unorganized labors because the working condition is more severe as compared to that
organized sectors further more the knowledge of occupational health and safety is
negligible of the workers of unorganized sectors.

3. Insecurity of job- Unorganized sector faces basic constraints such as casual nature
of employment. As discuss above as prima facie these acts applied on unorganized
sector as well but due to less number of workers in any organization as given in laws,
unorganized workers exempted. Social Security can be defined as “the provision of
benefits to households and individuals through public or collective arrangements to
protect against low or declining standard of living arising from a number of basic risks
and needs.
4. Low wages and have no power of bargaining: Minimum wages in most of the time
applies for labors working under the purview of organized sectors or formal sectors.
One another labour law “The Minimum Wages Act, 1948” is the answer for the
question ‘what is about the security of basic needs of labors?’ This act is legally non-
binding, but statutory. Payment of wages below the minimum wage rate amounts to
forced labour. Wage Boards are set up to review the industry’s capacity to pay and fix
minimum wages such that they at least cover a family’s requirements of calories,
shelter, clothing, education, medical assistance, and entertainment. Under the law, wage
rates in scheduled employments differ across states, sectors, skills, regions and
occupations owing to difference in costs of living, regional industries' capacity to pay,
consumption patterns, etc.
5. No Trade Union to put their demands: Maximum numbers of informal workers
do not have any knowledge about the existence and rules of labour union.
Simultaneously many workers of unorganized sectors, like union of agricultural
workers, brick workers, hosiery workers, construction rakes, fish and forest workers,
domestic workers, biri rollers, sex workers, liquor shop employees have joined
Shramajivi Swikriti Manch and Asanghathit Kshetra Shramik Sangrami Mancha with
unorganized sector assembled them under in one platform.

CHAPTER IV

DATA ANALYSIS AND INTERPRETATION
Table showing the number of members in the family of traders

TABLE .1
SL NO. CATEGORY FREQUENCY PERCENTAGE
1 Up to 2 2 4%
2 2-4 20 40 %
3 4-6 22 44 %
4 6-8 4 8%
5 More than 8 2 4%
Total 50 100%
Figure 1:
Showing the number of members in the family of traders
50
45
40
35
30
percentage
25
20
15
10
up to 2 2 to 4 4 to 6 6 to 8
Interpretation
It is clear from the above table that 44% of respondents opinioned that they have 4 – 6
members in their family depend in their income. There is 40% have 2 – 4 members in
their family. There is 8% respondents have 6 – 8 members, only 4% have up to 2
members and other 4 persons have more than 8 members in their family.

Table .2
showing monthly earnings of unorganized traders

1 Less than 5000 0 0%
2 5000-15000 33 66 %
3 15000-25000 17 34 %
4 25000-35000 0 0%
5 More than 35000 0 0%
Total 50 100 %
Figure .2
Showing monthly earnings of unorganized traders
70
60
50
40 FREQUENCY
30
20
10
less than 5000 5000 to 15000 15000 to 25000 25000 to 35000
Interpretation
It is observed from the above table that 66% of the respondents were opinioned that they
have a monthly income of rs.5000 – Rs. 15000. There is no one having income more
than rs.25000p.m. Product wise classification of the traders shows that food trader’s
combined to Other have more earning combined to other categories. 68% of the
respondents who sell fooditems have an income of 5000 – 15000 p.m.

Table .3
Table showing educational qualification of unorganized

1 Up to matriculation 37 74 %
2 Plus two 13 26 %
3 Degree 0 0%
4 PG 0 0%
5 Others 0 0%
Total 50 100 %
Figure .3
Showing educational qualification of unorganized
80
70
60
50
40 PERCENTAGE
30
20
10
Up to matriculation Plus two Degree PG
Interpretation:
It is viewed from the above table that 74% of the respondents are have educational
qualification up to matriculation. 37.5% of cloth/ footwear traders have qualified plus
two.

Table .4
Showing the factors which lead the respondents to select unorganized trading.

1 Self-motive 21 42 %
2 Lack ofcapital 29 58 %
3 Lack of 0 0%
infrastructural
4 Opportunities 0 0%
5 Others 0 0%
Total 50 100 %
Figure .4
Showing the factors which lead the respondents to select unorganized trading.
70
60
50
40
percentage
30
20
10
self-motive lack of capital lack of opportunities

infrastructural
Interpretation:
The major reasons for selecting this type of unorganized sector trade showing the above
table, lack of capital lead 58% the respondents to this sector, but 42% of the respondent
choose because of their self-motive. Traders dealing with cloth/footwear pointed out
lack of capital asthe main reason to select unorganized trading.

Table .5
Showing the methods by which unorganized traders attract the buyer.

1 Attractive 5 10 %
arrangement
2 Discount 15 30 %
3 Quality 30 60 %
Total 50 100%
Figure 5
Showing the methods by which unorganized traders attract the buyer.
70
60
50
40 percentage
30
20
10
attractive discound quality
Interpretation
It is inferred from the above table by providing quality goods and 30% of the trader
offer discounts to the customers. Only 10% try attractive arrangement of the product as
a sales promotion too. Food traders are giving priority to quality and the other tradersare
applying attractive arrangement and discount to enhance sales.

Table .6
Showing the place of business of unorganized traders

1 Near tomarket 16 32 %
2 Isolated area 4 8%
3 ear to busstation 15 30 %
4 Educational 7 14 %
institutions
5 Others 8 16 %
Total 50 100 %
Figure .6
Showing the place of business of unorganized traders
35
30
25
20 percentage
15
10
near to market isolated area near to bus station education

instructions
Interpretations:
It can be interpreted from the above table that 32% of the respondents prefer to sell their
products near to market and 30% of the respondents to sell their products near to bus
station because this place have maximum crowd. Only 18% of the respondents
preferred isolated area,to avoid competition from others. Food traders prefer the place
near to bus station.

Table .7
Showing the pricing policy of unorganized traders

1 Based on bargaining 18 36 %
2 Based on fixed price 19 38 %
3 n raw material cost 6 12 %
4 d on season ordemand 7 14 %
5 Others 0 0%
Total 50 100 %
Figure 7
Showing the pricing policy of unorganized traders
40
35
30
25
percentage
20
15
10
bargaining fixed price raw meterial cost season or demand
Interpretations:
Here the above table shows that 36% of the respondents responded that they fix the
price through bargaining. 38% opinioned that they will never change the price and the
balance fixesthe price depending upon the cost of raw material or season.

Table .8
Showing whether the unorganized traders are able to meet expense with income
or not
1 Always 0 0%
2 Often 19 38 %
3 Sometimes 15 30 %
4 Rarely 10 20 %
5 Never 6 12 %
Total 50 100 %
Figure .8
Showing whether the unorganized traders are able to meet expense with
incomeor not
40
35
30
25
percentage
20
15
10
always often sometimes rarely
Interpretations:
It is observed from the above table that respondents cannot always meet their
expenses out oftheir trade income. 30% of the respondent opinioned that sometimes
they can meet the expenses and 38% of the respondents opinioned that they very
often get the amount to spent their expenses. 20% of the respondents very rarely get
the amount to meet their expenditure. Product wise classifications of the traders
sometimes get the money for their needs.

Table .9
Table showing type of customers the traders prefer.

1 Regular customers 14 28 %
2 Local customers 0 0%
3 New customers 0 0%
4 No such 36 72 %
preferences
Total 50 100 %
Figure .9
Showing type of customers the traders prefer.
80
70
60
50
percentage
40
30
20
10
regular local new no such preference
Interpretations:
Product wise classification of the respondents was opinioned that cloth or foot wear
traders donot gave preferences on the type of customers. But food traders were gave
big importance to regular customers. None of the traders like those customers who
bargaining with them and noone prefer new customers.

Table .10
Showing whether traders face any competition or threat from organized trading
sector.

1 Always 10 20 %
2 Often 20 40 %
3 Sometimes 10 20 %
4 Rarely 3 6%
5 Never 7 14 %
Total 50 100 %
Figure .10
Showing whether traders face any competition or threat from organized trading
sector.
45
40
35
30
25 percentage
20
15
10
Interpretations:
Analysis of the above table shown that 40% of the respondents often face competition
from normal traders 20% of the respondents always face competitions from organized
sectors and only 6% of the respondents rarely face competitions from organized traders
and 14% of the respondents never face competitions from organized trading sector.

Table .11
showing permission from local authorities

1 Yes 16 32 %
2 No 34 68%
Total 50 100%
Figure 11
Showing permission from local authorities
80
70
60
50
percentage
40
Series 2
30 Series 3
20
10
yes no
Interpretation:
From the above table we can interpret that 68% have no permission from local
authorities totrade. Only 32% of respondents are doing trade with the permission of
authorities.

Table .12
Showing having allowances or subsidies from the local bodies

1 Always 0 0%
2 Often 2 4%
3 Sometimes 7 14 %
4 Rarely 10 20 %
5 Never 31 62 %
Total 50 100 %
Figure 12
Showing having allowances or subsidies from the local bodies
70
60
50
40 percentage
Column2
30
Column3
20
10
always often sometimes rarely never
Interpretations:
From the above table it can realize that 62% of respondents never getting any
allowances or subsidies from the local bodies. Only 14% of respondents getting
allowances from the local bodies at sometimes.

Table .13
Showing current satisfaction level of unorganized traders

1 Very high 0 0%
2 High 20 40 %
3 Moderate 26 52 %
4 Low 4 8%
5 Very low 0 0%
Total 50 100 %
Figure 13
Showing current satisfaction level of unorganized traders
60
50
40
percentage
30
20
10
very high high moderate low
Interpretations:
It is clear from above table 40-52% of respondents are highly satisfied from their current
business. Only 8% of the trader’s shows less satisfaction, however, none of the traders
are highly satisfied is their business. Product wise classification of traders shows that
above 50% of food traders and cloth traders and 26% of other traders aremoderately
satisfied with their business. It should be noted that the unorganized tradersare not highly
satisfied with their current business

Table .14
Showing any threat from authorities like Panjayath or Municipalities,
like wise

1 Always 9 18 %
2 Often 15 30 %
3 Sometimes 22 44 %
4 Rarely 2 4%
5 Never 2 4%
Total 50 100 %
Figure 14
Showing any threat from authorities like Panjayat or Municipalities, like wise
50
45
40
35
30
PERCENTAGE
25
20
15
10
Interpretations:
It can be interpreted from the above table that 44% of traders sometimes face threat
from authorities like Panjayat or Municipalities and likewise. 4% of traders rarely or
never facing such threats. 58% of other type of respondents sometimes facing threat
from authorities than other traders.

Table .15
Showing difficulties to purchase product from wholesale market,
SL NO CATEGORY FREQUENCY PERCENTAGE

1 Yes 36 72 %
2 No 14 28 %
Total 50 100 %
Figure 15
Showing difficulties to purchase product from whole sale market,
80
70
60
50
percentage
40
30
20
10
yes no
Interpretations:
It is clear from the above table that 72% of respondents have faced difficulties to
purchase products from wholesale market. Among food traders 72% of respondents
hoe facing are some difficulties to purchase product from wholesale market. 33% of
other traders have no face difficulties to purchase products from wholesale market.

CHAPTER V

FINDINGS
 Out of the 50 respondents selected, 22 respondents are food traders, 16 respondents
are cloth and footwear traders, and the remaining are other traders.
 Above 66% of the respondents have as income between Rs 5,000 and 15,000.
 Lack of capital and self-motive are the two main reasons for selecting unorganized
trading sector
 Low price and quality products are the factors which attract customers towards street
vendors
 Unorganized traders concentrate around bus station and market areas to sell their
products
 36% respondents fix their selling price based on cost and through bargaining
 Majority of the respondents cannot always meet their expenses out of their income
 Majority of the respondents do not have any preference in selecting their customers
 40% of the respondents often face competition from organized trading sector
 Only 52% of the respondents are moderately satisfied with their current business
 30% of the respondents often face threat from authorities like Panjayath or
municipalities, like wise
 44% of the respondents face high climatic problems to do their business
 All types of unorganized traders are facing cleanliness problem
 48% of the respondents highly face threat from police
 Unorganized traders do not get any subsidies because they are not registered under
any bodies

SUGGESTIONS
 It is advisable for the unorganized traders to set up an organization to deal with the
affairs of unorganized traders like all other sectors have.
 The authorities should allot a proper place of business for the unorganized traders
 Government should try to provide enough subsidies to the unorganized trade to solve
the problem of finance
 Providing a proper place of business to the unorganized traders can solve their majority
problems like climatic condition, threat from police and local authorities, cleanliness
problem etc.
 Fixation of maximum retail price from the product of unorganized traders can solve the
problem of bargaining by the customers
 Fixing selling price based on cost price can help the unorganized traders to ensure the
profit.
 The attitude of general public toward the unorganized traders should be changed
 The unorganized trading sector should be soon organized to raise their voice in front
of the public
 Local bodies should try to provide the unorganized traders with financial and technical
support to solve their problems and insecurities
 Proper measures should be undertaken by the local authorities to ensure a clean and
tidy place business to the unorganized trading workers.

CONCLUSION
The study entitled “The problem and insecurities faced by unorganized trading sector"
focused on the various problems faced by the unorganized traders like street vendors,
peddlers, hawkers etc. around Mannarkad municipality . Threat from the police and
local authority, competition from the organized sector, attitude of customers, bargaining
problems lack of space etc. are their main problems which I have found. Lack of capital
is themain reasons which lead them to this sector.
The unorganized traders are not at all organized and hence they do not receive any
financial and technical assistance from any authorities. Creating an organization to
control and regulate the unorganized trading sectors can solve majority of their
problems. Government should try to provide proper place of business to these sectors
to provide them with adequate care, protection and security.
Unorganized traders are also an integral part of trade and commerce. Hence, they should
be given equal importance and care that is given to the organized traders in our society.
Let both the organized and unorganized traders grow and flourish together for the
overall growth of our economy.

BIBLIOGRAPHY

BIBLIOGRAPHY
BOOKS
 Alessandro Baldacci, Rain mantysalo “Urban planning as a trading Zone”
 Edward Elgar publishing “ The challenges of food security”
 L.M.Bhole, financial institutions and markets, TataMCgraw- hill
Education,2009
ARTICLES
 Banerjee Women workers in unorganized sector,Vol, 28 No.
6, 1983Novemmber 7. Page 164-168
 Desk and Wadhwa “Characteristics of participants in unorganized

sector. Vol.16, No. 24, 1983 July 13. Page 222-225
 Manohar “Exploitation women in unorganized sector. Vol. 19, No.

7, 1983,May 24. Page 120-122
 Anandh “Conditions of lower cast tamil migrates in Delhi, Vol. 22,

No.3,1988,October 25.Page 282-284.
 Guhan, “Importance of Protective type programs for unorganized

sector.Vol. 6,No. 15, 1994, May 12. Page 176-179
WEBSITES
 WWW. Capetownpartnership .com
 WWW.arabianjbmrjbrm.com
 WWW.Wiego.org

QUESTIONAIRE
“A STUDY ON THE PROBLEMS AND INSECURITIES FACED BY

UNORGANIZED TRADING SECTOR WITH SPECIAL REFERENCE TO
MANNARKAD MUNICIPALITY”
1. Name: ……………………………………………………….
2. Gender: Male Female
3. Age: Less than 25 25 – 35

55 – 65
35 – 45
45 – 55
4. Number of members in your family
Up to 2 2–4
More than 8
4-6 6–8
5. Monthly earnings
Less than 5,000 5,000 – 15,000

More than 35000
15000 – 25000
25000 – 35000
6. Educational qualification?
Up to matriculation degree

PG Others plus two
7. Which kind of products do you trade?
Food Cloth and footwear
Others


8. Which factors has led you to this type of trade?
Self-motive Lack of capital
Lack of infrastructure Others
opurtunities Oppo
Specify………………………..
9. How can you attract people to purchase your products?
Attractive arrangement Discount

Quality of products
10. Which kind of place you choose to sell?
Near to market isolated area
Near to bus station Educational institutions
Others specify………………………………….
11. Do you have a special space of your own to sell the products?
Yes No
12. How do you determine the price of the product?
Through bargaining fixed price

Depends on the cost of raw materials
Depends on the season or demand
Specify…………………………………


13. Can you meet your expenses out of your income?
Always Often Sometimes Rarely Never
14. Which kind of customers do you prefer?
Regular customers Local customers
New customers No such preferences
15. Do you face any competition or threat from organized trading sector?
Always
Often
Sometimes
Rarely
Never


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“A STUDY ON THE PROBLEM AND CHALLENGESFACED BY

In Partially Fulfillment Of The Requirement For the Award Of Degree of

DEPARTMENT OF COMMERCE AND MANAGEMENTSTUDIES

This is to certify that the project report entitled “A STUDY ON THE

CERTIFICATE FROM THEGUIDE

This is to certify that the project report entitled “A STUDY ON THE

I hereby declare that the project work entitled “A STUDY ON THE

Place: MOHAMMED SALIH VT

In connection with the project report, this is a part of Bachelor of Commerce

My heart full gratitude to Dr.Rajesh.C principal in charge of our college for

I wish to express my profound gratitude to Mrs. ASMABI.K (HOD of

Place: MOHAMMED SALIH VT

CHAPTER CONTENTS PAGE

3 THEORETICAL APPROACH 12-18

4 DATA ANALYSIS AND INTERPRETATION 19-33

5 FINDINGS, SUGGESTIONSAND 34-36

NAME OF THE TABEL

FIGURE SHOWING MONTHLY EARNINGS OF

FIGURE SHOWING EDUCATIONAL

FIGURE SHOWING THE FACTORES WHICH LEAD

FIGURE SHOWING THE PRICING POLICY OF

FIGURE SHOWING WHETHER THE

FIGURE SHOWING TYPE OF CUSTOMERS THE

FIGURE SHOWING PERMISSION FROM LOCAL

FIGURE SHOWING HAVING ALLOWANCES OR

FIGURE SHOWING CURRENT SATISFACTION

FIGURE SHOWING ANY THREAT FROM

FIGURE SHOWING DIFFICULTIES TO PURCHASE

DCMS MES KALLADI COLLEGE

The street and pavement vendors from a substantial proportion of the in

DCMS 1 MES KALLADI COLLEGE

The concept of the ‘Unorganized sector' became established in terminology of

DCMS 2 MES KALLADI COLLEGE

1.2 STATEMENT OF THE PROBLEM

1.3 OBJECTIVES OF THE STUDY

 To study the problems faced by Unorganized trading sector compared to

1.4 NEED OF THE STUDY

To solve the problems faced by the unorganized trading sector of mannarkad

DCMS 3 MES KALLADI COLLEGE

1.5 SCOPE OF THE STUDY

1.6 RESEARCH METHODOLOGY

Research is a systematic study of the problem and identification of the solution of

1.6.1 RESEARCH DESIGN

The data was convened, purposeful and descriptive in nature.

200 t r a d e r s of ma n n a r k a d mu n i c i p a l i t y are randomlyselected for the

16.2 SAMPLE UNIT

This study is conducted on mannarkad.

DCMS 4 MES KALLADI COLLEGE

1.6.4 .SAMPLE SIZE

50 traders Mannarkad municipality are randomlyselected for the study.

1.7 METHOD OF DATA COLLECTION

Methodology describes the method used to make the research in order to

findthe fact and solve the problem systematically.

SOURCES OF DATA COLLECTION

DCMS 5 MES KALLADI COLLEGE

1.9 DURATION OF THE STUDY

The study is conducted for 21 days

1.10 LIMITATIONS OF THE STUDY

 Unorganized sellers are scattered over Mannarkad municipality.So, data

DCMS 6 MES KALLADI COLLEGE

DCMS MES KALLADI COLLEGE

In order to simplify he divided the economy into unorganized, agricultural, private