Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter represent the Related Literature and Related Studies in this study.

Moreover, it represents the Theoretical Framework, Conceptual Framework and

Definition of Terms.

Review of Related Literature

A review literature is a detailed review of existing literature related to a topic. In

review related literature, it talks about knowledge, and findings that are relevant to the

research studies that you conduct, and it aims to support more of your research studies.

Related Literature

Street vendors were unable to obtain regular employment in the well-paying

formal due to their lack of training and knowledge in the area. They strive to fix their

livelihood problems with their small cash resource. Fruit and vegetable growers and

small-scale businesses who cannot afford to sell their products in stores would face a

dreadful calamity through overpriced formal sector distribution networks if they were to

disappear from urban markets The priority for enhancing street food safety should be

vendor training. The dissemination of additional policies and actions is necessary to

improve the merchants understanding, attitudes, and behavior about food safety. The

facilities and working conditions for street food sellers must be improved, including the

provision of sanitary, secure structures, access to drinkable water, and efficient waste
collection and disposal systems. These findings should spur government agencies to

advance strategies to improve the safety of fast food (Ma, L. et al., 2019).

There are no accurate data for street vending or for the informal economy in

general due to the fact that street vending and/or informal sector are informal activities

operating without registration and licenses. According to the conceptualization of the

International Labor Organization (ILO), the formal economy consists of government

entities in addition to registered private units with fixed premises, while the informal

sector includes unregistered business units such as street vending, agricultural family

production, daily construction work, and home-based enterprises (OECD/ILO, 2019).

According to Republic act No. 6039 “An act amending section eighteen (cc) of

republic act numbered four hundred nine, as amended”, it stated that all vendors shall

daily pay their prescribed market fees and under no circumstances will they be allowed

to accumulate back rentals in excess of fifteen days and any vendor who, after due

notice of demand, has failed to pay such rentals, shall automatically forfeit his rights as

stallholders, and his stalls may be closed by the market administrator.

According to Panwar (2015), since the beginning of time, people have made a

living by selling things, and street vendors are deeply ingrained in our urban history and

culture. The most noticeable part of the informal economy is street vending, which is a

global phenomenon. Without adhering to any set vending hours, vendors offer their

goods in an unregulated and competitive market setting. As the initial investment and

risk involved with vending daily necessities are modest, it frequently occurs on an

unlawful basis and in violation of government rules yet, because of these street
vendors, it does not depend on formal financial institutions for its credit needs. To

create economic opportunities, street vending is rampant along the streets of the cities.

Vendors were part of a small business with issues about licensing, taxes, operating

locations, and street food vendors with the local government. The government and non-

government organizations may be better able to appreciate the vendors' suffering and

develop solutions if they are aware of their tales projects that can improve their financial

situation (Menes et al., 2019).

Related Studies

Chille, et. al. (2023), in their study, stated that the purpose of the study was to

investigate on the nexus between perception of street vendors on the profitability of

products they sell. The specific objective of the study was to determine the perception of

street vendors in relation with the types of products they sell; identify the perception of

street vendors in products they sell in relation with the capital they employ and the

perception of street vendors in products they sell in relation with the demand of

products, respectively. There was a positive perception on the street vending business

with the market demand. It was noted also positive perception of street vending

business with the capital employed. Theoretically the study has validated the TRA

theory by integrating it with the dynamic theory of strategy in assessing the studied

objectives, in studying the in the context of developing countries, particularly in

Tanzania. Empirically, the study assisted in improving of the street vending business

growth by proposing better methods and techniques on improving profitability, for a

better micro business performance in Tanzania. The study proposes that Government
and Business stakeholders should enhance street vendors capacities, through

promotion and improvement of entrepreneurial and business skills of the street vendors

in Tanzania.

According to Onyango (2022), street vending being a subsector of MSES

exponentially grows with urbanization. The main. goal of street vending is to ensure that

individuals earn an income and improve on their livelihoods. This however is far from

being achieved based on the available evidence especially in Africa that anchors

income maximization. The major aim of the study was to establish determinants of

profitability of street vending business in Kisumu Central Business District, Kenya.

Particularly, it aimed to establish the influence of financial niche, creativity, experience,

gender, and level of education on profitability of street vending business in Kisumu

Central Business District. The study concluded that financial niche, creativity, gender,

and level of education influenced profitability of street vending business in Kisumu

Central Business District. The study findings indicated that financial niche, creativity,

experience and, level of education had a weak positive influence on profitability of street

vending business. Experience however indicated a negative relationship with

profitability. In relation to the findings of the study, the study recommended that the

Kenyan government should assess the guidelines governing street vending in a bid to

create a favorable environment for the business to continue thriving. The study

proposed that a similar study be conducted in another area to determine whether the

results would be different from this study.

According to the study of Recio and Gomez on 2013, entitled “Street Vendors,

their Contested Spaces, and the Policy Environment: A View from Caloócan, Metro
Manila”, In developing states of Southeast Asia, street vendors play a significant but

frequently unappreciated role in both the vibrancy of public spaces as well as the

informal economy. Yet, they are subject to indiscriminate purges from sidewalks and

other contested territories, which they occupy for lack of provision of spaces in which

they could otherwise do business. But such occurrences, and the conflicts that may

follow, can be addressed by revisiting policies, which seem anti-vendor or which fail to

comprehend their presence and needs. It has led them to tentatively conclude that in

order for negative or inefficient dynamics to be avoided or removed, the first step may

have to be a serious reconsideration of the mental paradigms that players bring into the

picture.

According to the study of Solidum 2023, entitled " Status and Problems of the

Street Vendors: Inputs for Local Government Unit Planning", based on her study

Solidum stated that the inability of street vendors to obtain permanent employment in

the lucrative formal sector is due to their lack of expertise and training in the profession.

With the limited money they have available, they try to solve their financial concerns.

This study aimed to determine the status and problems encountered by street vendors.

There is no significant difference in the responses of the street vendors in terms of

governance and legal problems, workplace-related, and physical problems when

grouped according to household size, daily income, and number of years in street

vending. But significant in the responses of the street vendors in terms of governance

and legal, socioeconomic problems and work-place related problems when grouped

according to daily income. There is no significant difference in the responses of the

respondents in terms of socioeconomic problems when grouped according to the

number of years in street vending. Additionally, the larger the household size of street

vendors, the more likely they encounter socioeconomic problems. Thus, it is strongly

recommended that the local government unit must utilize the results as inputs in local

planning and in enhancing existing policies in street vending.

Theoretical Framework

The present study is strengthened by different theories which serve as its back

up to make the ideals of the research stronger and more reliable. The theories cited in

this portion will be its corner stone to develop the output of this study.

This study is anchored on the, Modernism Theory of Scott, 1998, it explains

state/urban planners’ hostile response to street vending. Modernism argues that, in

relation to vending, an investment-friendly urban centre with a good-looking image is

prioritized; consequently, urban planners criminalize and crack down on vending

because vendors are viewed as irritants who make the urban centre unattractive to

sums it up this way, Modernism often implied crackdowns on street vendors because of

the ideals of public order and state control. The modernism view underpins policy

responses to street vending in many countries.

This study was also grounded on the theory of Rakowski 1994, identifies as the

Structuralist perspective. The first perspective emerged from some of the concerns of

the International Labor Organization and eventually incorporated neo-Marxist theories

and dependency theories. The informal sector was a product of the structural

inequalities inherent in the capitalist mode of production. From this perspective,

informality acts as a survival strategy or socioeconomic safety-net for those living in

precarious conditions. Individuals who partake in informal activities have no other option

as they are squeezed out of the formal economy. As he explains, the informal sector

should be understood as a direct product of the flexibilization of the labor force in order

to achieve higher rates of competitiveness within globalizing national economies. In this

sense, the production of un- and underemployment were analyzed as core strategies in

the development of wealth and capitalist accumulation.

 STRATEGIES
INFLUENCING THE
PROFITABILITY OF
STREET FOOD
VENDORS

MODERNISM STRUCTURALIST
THEORY PERSPECTIVE

FIGURE 1. THEORITICAL PARADIGM

CONCEPTUAL FRAMEWORK

The figure below shows a conceptualization model of the strategies affecting the

profitability of the Street Vendors. It was shown to present the flow and illustrate what

was expected to be found in the present study.

The study focused on the Street Food Vendors on what are the strategies they

use to gain more profit in their everyday lives. It includes with the choosing of the

location with huge number of customers, offering unique and new dishes to attract and

stand out from other vendors, the quality of food or things they sell, affordable pricing,

hygiene and cleanliness, the efficiency to serve every customers, the promotion,

customer engagement, licensing and permits, and lastly, innovation. It determines the

differences between vendors’ perception in terms of food safety practices, hygiene, food

preparation and environmental exposure, and their demographic profile. This research

study benefits all the people who want to know all about food safety and its

components.
 Strategies Influencing
the Profitability of Street
Foods Vendors

How are the profits of

Demographic Profile Street Food Vendors
affected in terms of:
a. Years of selling
Street Food a. Location
b. Capital for Business b. Financial Capital
c. Typed of Street c. Competitors
Food being sold d.Cleanliness/Proper
d. Operating hours Hygiene
e. Quality of Food

Strategies of the Street

Food Vendors that impact
their profitability

FIGURE 2. CONCEPTUAL PARADIGM

Definitions of Terms

Street Food Vendors - Street food vendors sell food preparations, dishes and products

on organized outdoor or indoor market places, or on the streets. Street Food Vendors

are the main variables of this study as it aims to know their point of views in their

everyday lives as they sell goods.

Strategies - Strategy can be intended or can emerge as a pattern of activity as the

organization adapts to its environment or competes. It involves activities such as

strategic planning and strategic thinking. It is one of the factors that this study wants to

know the strategy of every street food vendors to gain an income.

Profitability – A measure of how efficiently a business converts its expenses into profits

for its owners. Profitability is one of the factors that depends on the vendors strategies

whether it is effective to gain more profit.

References

Solidom, Gemma (2023). Status and Problems of the Street Vendors: Inputs for Local
Government Unit Planning. Sprin Journal of Arts Humanities and Social
Sciences 2(04):51-62.
https://www.researchgate.net/publication/370113833_STATUS_AND_PROBLE
MS_OF_THE_STREET_VENDORS_INPUTS_FOR_LOCAL_GOVERNMENT_
UNIT_PLANNING

Al-Jundi, Salem A., Salam, Mohammad A., Al-Janabi, Haitham A,. Bajaba, Saleh, Ullah,
Shakir (2021). The Impact of Urban Culture on Street Vending: A Path Model
Analysis of the General Public's Perspective.
https://www.frontiersin.org/articles/10.3389/fpsyg.2021.831014/full

The LAWPHiL Project. Republic Act No. 6039. An act amending section eighteen (cc) of
republic act numbered four hundred nine, as amended, entitled, "An act to revise
the charter of the city of manila, and for other purposes."
https://lawphil.net/statutes/repacts/ra1969/ra_6039_1969.html#:~:text=all
%20vendors%20shall%20daily%20pay,and%20his%20stalls%20may%20be

Chille, Felix Joseph, Mrindoko, Allen, Mbwanbo, Haika (2023). The Influence on
Perception of Street Vendors on Profitability of Products They Sell: A Case of
Dar es Salaam and Coast Regions of Tanzania.
https://ijssrr.com/journal/article/view/1708

Onyango, Dorcas A., (2022). Determinants of Profitability on Street Vending in Kisumu

Central Business District, Kenya.
http://erepository.uonbi.ac.ke/bitstream/handle/11295/162185/Onyango
%20D_Determinants%20of%20Profitability%20on%20Street%20Vending%20in
%20Kisumu%20Central%20Business%20District%2C%20Kenya.pdf?
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Spaces, and the Policy Environment: A View from Caloócan, Metro Manila.
Environment and Urbanization ASIA 4(1):173-190.
https://www.researchgate.net/publication/258136765_Street_Vendors_their_Cont
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Igudia, Eghosa (2019). Exploring the theories, determinants and policy options of street
vending: A demand-side approach. Volume 57, Issue 1.
https://journals.sagepub.com/doi/10.1177/0042098019835736