Professional Documents
Culture Documents
DEC, 2023
Contents
List of Abbreviations.................................................................................................................................5
Abstract......................................................................................................................................................6
Chapter One...............................................................................................................................................7
1. Introduction.......................................................................................................................................7
1.1. Background of the Study................................................................................................................7
1.2 Statement of the Problem................................................................................................................9
1.3. Objectives of the Study.................................................................................................................11
1.3.1. General Objective......................................................................................................................11
1.3.2. Specific Objectives.....................................................................................................................11
1.4. Major research question..............................................................................................................11
1.5. Scope of the study.........................................................................................................................11
1.6 Significance of the Study...............................................................................................................12
Chapter Two............................................................................................................................................13
2. Review of Related Literature..........................................................................................................13
2.1. What is Street Vending?...............................................................................................................13
2.1.1. Definition....................................................................................................................................13
2.1. 2 Types of Street Vending............................................................................................................14
I. Mobile Vending unit................................................................................................................14
II. Static or fixed vending unit.................................................................................................14
2.2 The Reasons that the Beginning of Street Vending.....................................................................15
2.2.1 Lack of Economic Growth.....................................................................................................15
2.3 The Importance of Street Vending...........................................................................................16
2.4 Obstacle of Street Venders........................................................................................................16
2.5 Negative Impact of Street Vending...........................................................................................17
2.6 The Economic Threats of Street vending.................................................................................17
2.7 The major Coping Strategies of Street Vending....................................................................18
2.8 Rational Choice Theory.............................................................................................................18
2.9 Effectuation Theory...................................................................................................................19
2.10 The School of Thoughts about Street Vending......................................................................19
Chapter Three..........................................................................................................................................19
3. Research Methodology....................................................................................................................19
3.1 Description of the Study Area...................................................................................................19
3.1.1 Location and size.....................................................................................................................20
3.1.2 Climate....................................................................................................................................21
3.2 Socio-economic and demographic characteristics of the study area......................................21
3.2.1 Demographic characteristics.....................................................................................................21
3.2.2 Land use and economic activity.............................................................................................21
3.3 Research Design.........................................................................................................................21
3.4 Data sources...............................................................................................................................21
3.6 Data Analysis.............................................................................................................................23
3.7. Ethical Consideration...............................................................................................................23
4. BUDGET BREAK DOWN................................................................................................................23
5.1 ACTIVITIES....................................................................................................................................24
Reference..............................................................................................................................................25
ACKNOWLEDGMENT
First, we would like to give Our greatest thanks to almighty of God for his great support to
pass Our obstacles and also helps us to do this research Proposal with a piece of
knowledge Secondly, we would also like to thanks our advisor, Mr.Melkamu.G for his
professional comments and guidance during preparation of our research Proposal work.
Finally, we extends our special thanks to our family for their wonderful moral and financial
support throughout the period of the study. We say thank you and God bless you.
List of Abbreviations
CBD Central Business District
Key words: -Implication; Street vending, Socio- economic, Trade, Vendors, Bule Hora Town
Chapter One
1. Introduction
1.1. Background of the Study
Street venders are an integral part of urban economies around the world. Offering easy access to
a wide range of goods and services in public spaces. They sell ever thing from vegetable to
prepared foods, from building materials to garments and crafts, from consumer electronic to auto
repair to hair crafts most street vendors provides the main source of income for their households,
bringing food to their families and paying school (Sarah, 2019).
Street vending defined as one of the major informal economic activities and it’s known to be old
practice. It has always had presence in the composition of cities. There is substantial increase in
the number of street vendors in the major cities around world, especially in the developing
countries of Asia, Latin America and Africa (Sahara, 2011).
Street vending is pervasive across the globe, especially in developing countries. It provides an
important source of earning for an unemployment in urban area, as well as a source of relatively
in expensive goods and services for city resident. However typical venders faces a common set
of problems which range from tenuous poverty high and harassment from civic authorities to
subsistence living and earning, under this precarious setting, street enterprises have been
expanding [Wiley,2013]
Just in Africa between 10 to 20 percent the population living selling goods and services in public
places. Yet their right to work harassment, discrimination confiscation of their stock. As street
vendors are frequently will deprive for the ender have right to organize, has will no
representation in decision affecting their lives and have no safety to fall back on, the slogan for
the day is street venders are
workers with the same right to organize, representation and social protection as other workers, it
is under this slogan that war on wants partner, the Malawi union for the informal sector is today
submitting a memorandum to local council authorities to recognize and respond to the many
needs and demands their members, including the filthy conditions vendors have to work in with
no toilets and clean water and the harassment they face. African cities are crowed, but not
necessarily economically dense. In other word, they are undergoing an urbanization of people,
not of capital (saha 20011).
Ethiopia is one of the populous countries in Africa with an estimated population of over 100
million. The Ethiopian government has applied a federal structure of governance consisting of
nine regional states and two city administrations which is sub divided into zones, districts, and
kebele administrations. Agriculture is the main means of subsistence in national economy with
an emerging and growing manufacturing and service sectors (MoFED, 2012).
In Ethiopia there is high rural urban migration and urbanization is highly increasing from time to
time. As a result, Ethiopian town and cities have been grappled with rapid growth of
unemployment mainly among young people. This forced the engagement into different urban
based income generation activities including informal sector and street vending. According to the
CSA (2003) report, the informal sector absorbs for about 60 percent of the urban labor force in
Ethiopia. In addition, street vending is another self-employment sector that absorbed may job
seeking young people (CSA, 2003).
The term in informal sector (street vendors) used for all activities that goods and services of
means of production are legal but not registered or out of government control. That people work
as self-employed without pay any cost for registration, tax and who work as a means of income
with poor condition of working and without security. Within informal sector activities including
petty traders, street venders, and waste pickers, coolies, shoeshine, small artisans and personal
servants( Bhowmil,2007).
The main causes for the growth of street vending in these countries, lack of gainful employment
coupled with poverty in rural areas has pushed people out of their villages in search of a better
existence in the cities. These migrants do not possess the skills or the education to enable them to
find better paid, secure employment in the formal sector and they have to settle for work in the
informal sector. There is another section of the population in these countries who are forced to
join the informal sector. They lost their jobs because of closer, down-sizing or mergers in the
industries they worked in and they or their family members had to seek low paid work in the
informal sector in order to survive. Both causes are directly related to globalization (Bhowmik,
2007).
Street vending in Bule Hora Town is illegal and considered as a public nuisance and street
venders have also been increasing in number. The concern of this study therefore is the analysis
of the street vending and its spatial implications on socio economic in the city center of Bule
Hora. The informal economy is the highest employer of the urban poor because of the ability of
the formal sector to cope with demand for jobs, good and service. The street vendors store is
either a small outside area that can be locked and shut down at the end of the night or a cart that
can be moved from location to location and taken home at the end of the day. This is similar in
Bule Hora town of Oromia region. Of the total population of Bule Hora town, there are 2680
people engaged in formal traders of which 20% are street venders (Administration of Bule Hora
town, trade and transportation office).
Since street vending is the one of the most visible and important part of urban informal sectors,
investigations regarding the condition how they earn their living from it and their relation with
government authorities, its contribution to live hood security , diversification strategy of income
and their socio economic back ground is important to further inquire in the field. The main
reason for this study’s focus, on street vending activities in Bule Hora, did not emphasize
aforementation aspects of street vendors. Particularly, this study tried to give due consideration
to them (Fransen and Mulugeta, 2008).
According to international journal of sociology and anthropology, street vending as the safety
net for the disadvantaged people. The existence of a renewed interest in the study of informal
sector is reflected in various national and international initiatives. This is considered as a turning
point to the sector to be recognized in many corners. Pointed out that, more emphasis should be
placed on improving socio-economic situation of the disadvantaged people at the grass root
levels to create better opportunities for income generating activities. However, this assessment
on street vendors was too general and focused on the entire informality but did not see the
dynamic situation of street vendors particularly (Asmammaw, 2015).
Different research conducted on street vending informal business activities in different countries
like Botswana, Mexico, Cambodia, Mongolia, Thailand, Vietnam, and Lesotho, in some Ethiopia
region also studded like Addis Ababa, Mekele and Jimma. According to these research, it Show
that street vending plays significant socio economic activities and alleviating poverty by creating
employment and income generating activities. But in my study area there is no sufficient
information about socioeconomic implication of street vending in Bule Hora town. So my study
would fill the gaps of those absences of study research about the socio economic implication of
street vending.
Mithulla, he saw that in the developing nation people engage the street vending, but he does
not tell about by what case they engage the activity of street vending. When researcher saw
that the people engage the street vending either by lack of adequate insufficient economy or
lack of any other work or unemployment, so the people engage the reason.
Mulugeta saw that street vending is one of the most visible and important of urban informal
sector, but he does not see in rural sector. When researcher saw that the activities like both
urban and rural informal sector. He does not see both urban and rural sector.
1.3. Objectives of the Study
1.3.1. General Objective
The general aim of this research is to investigate the socio economic implication of street
vending in West Guji zone, in case of Bule Hora town.
Conceptually this study drawn in the research objectives above, describe the reasons that makes
people street traders, explore the major coping strategies of street venders while facing
constraints from governing bodies and identify the economic threats of street vending, simply
this study will be limited to investigate socio economic implication of street vending west Guji
zone, particularly Bule Hora town.
1.6 Significance of the Study
Researcher will hope that this research is expected to have both academic and non-academic
significances. Accordingly, the studies were benefiting a range of stakeholders who have been
working on the issue at hand. The significance of this study would expect to give understanding
the importance of street vending in Bule Hora town. The study expected to raise the awareness of
street vending, understand the challenges of the street vendors and also helps to prevent the
police reducing and controlling the problem of street vendors and also mitigate the expansion of
street vendors .and also will attempt to address the economic implication of street vending in
west Guji zone Bule Hora town. Result of the study will provide a better understanding and
awareness to policy maker and also explore the major strategies of street vending while facing
governing bodies.
Chapter Two
2. Review of Related Literature
2.1. What is Street Vending?
2.1.1. Definition
History of Street vendors has been in existence since ancient times. In all civilizations, ancient
and medieval, one reads accounts of travelling merchants who not only sold their wares in the
town by going from house to house but they also traded in neighboring countries. Perhaps
ancient and medieval civilizations were tolerant to these wandering traders and that is why they
flourished. In modern times we find that street vending are rarely treated with the same measure
of dignity and tolerance (Bhowmik and Saha 2013).
Street vending someone who sells food, goods and merchandise on the street or in an open-air
market rather than at a traditional store. They are identified as the informal sector where their
businesses are conducted as form of irregular, unstable, and marginal economic activities. As
such there is no systematic documentation of the numbers of street vending, their scale of
businesses, or the viability of their pursuits. Street vending is probably the second most
important employment opportunity for the urban poor societies (Tiwari 2000).
Street vending is an important part of urban economies. It provides affordable 1goods and
services with retail choices to the poor section of the population in LDCs (ILO, 2002a). Street
vendors are entrepreneurs who sell goods or provide services in the street. They sell a wide range
of goods and services on a retail basis in streets and sidewalks. They may have fixed booths such
as kiosks and semi-fixed booths like folding tables (Tanga, 2009). They may work from barred
enclosures, collapsible stands, or wheeled pushcarts that are moved and stored quickly. Other
vendors sell from fixed locations without having any structure, displaying their products on
plastic sheets. Lottery and mobile vendors, on the other hand, walk through the streets (ILO,
2002b). In general, street vendors form a significant part of urban livelihoods particularly in the
developing regions of the world of which Ethiopia is not an exception.
2.1. 2 Types of Street Vending
Street vending is a kind of vending strategy where by people sale goods or provides services
from public space. According to Kusakabe (2006) street vending can be classified in two.
According to McGee (1973) street vendors are classified according to their location. McGee
classified the vendors in to three types of locations:
1. Vendors who sell in places where people assemble, such as markets and bus terminals.
2. Vendors who sell on the street. This type of vendor poses problems of congestion and
obstruction.
3. Vendors who sell a bazaar. A bazaar is equivalent to the seasonal or periodic market
where vendors sell on a piece of public or private land. According to McGee, a bazaar is
a place for entertainment as well as a place for selling. It is the “department store” of a
dual economy’s traditional sector.
2.2 The Reasons that the Beginning of Street Vending
Based on countries reasons of street vending theories based on the four dominant schools of
thought like dualistic, structural, legalist and ill-legalist schools of thought. The street vendors
are different from one country to another country affected by culture, politics and economic
backgrounds.
2.2.7 Globalization
John c (2000) the current change in global economy is associated post modernity and post
modernism is more open to informal sector to function in the economy of creates for new
business.
In developing countries estimate of the size of the informal sector in terms of its share of non-
agricultural employment range is roughly between one fifth and four fifth ad in terms of its
contribution to GDP, 25% and 40% of annual, the importance of informal sector in the sector as
innovation, creativity, capital saving and growing production (Youns, 1977).
2.4 Obstacle of Street Venders
Salary workers lead to uncertain terms of future earning, uncertainty in terms of contract
renewal, lack of basic benefits (severance pay overtime, unemployment benefits, and sick leave)
and social protection, long work hours, work accidents, absent workers and high indirect
operational costs (OECD, 2008).
According to World Bank Informal sector or traders are facing a lot of financial and non-
financial obstacles. Those are suffering a lack of legal protection. Endure restricted access to
capital and business support. Within informal economy are faced problem here are some of the
main ones, as they affect local government. Poor infrastructure, affects street vendors, they need
infrastructure include formal markets, water and electricity. Low demand, Poor access to finance
and banking, no social benefits, no any insurance, under minimum wage that difficult to make
any saving and non-appropriate working condition (World Bank, 2000).
Fig .3.1
Study area location map of (a) Ethiopia, (b) Oromia region, and (c) Bule Hora town.
3.1.2 Climate
As data from culture and tourism office reveals. Bule Hora town is one of the annual average
temperature is 23% and dega climatic condition. The town monthly rain fall from April to august
has 300mm-1500mm. the highest temperature for the area has 23%. The town get rain fall
through the whole year up to mean rain fall range 100up to 1400mm
The town has an organized more association with engaged in trade center in local market , small
scale and micro enterprise on woodwork, manufacturing service etc. most people in Bule Hora
town trade to provide cash crop such as coffee for market center in average annual
895.6,corn(600 tones),hides(53148)for center market (Bule Hora municipality,20015 e.c).
3.4.1.2 Observation
Using these methods, the opportunity to record and analyze behavior and interactions as they
occur. This allows events, implications, actions and experiences and so on, the researcher seen
through the eyes of the researcher, often without any construction on the part of those involved.
It is a particularly useful approach where the behavioral consequences of events form a focal
point of the street vendors. The research will make transact walk across Bule Hora town street
parts of the selected areas to observe the street vendors practices, their materials.
Secondary Data
Secondary data which is appropriate for this study will be collected through reviewing different
documents from Bule Hora town trade and market office. Furthermore, pertinent published and
unpublished reports, books and journals will be reviewed to produce information about the
constraints affecting the effective utilization of street vending in socio economic development.
5.1 ACTIVITIES
The major activities to be implemented during this work starting from title selection up to final thesis
submission will be as follows;-
1 Questionairy
development, sampling
2 Data collection
3 Proposal writing,
submission
5 Thesis compilation
6 Thesis presentation,
correction and
submission
Reference