Dr, Associate Professor of Economics and Law in the Department of Economics, Faculty of Business and Economics, Mettu University, Ethiopia
The informal economy plays a key role in ensuring economic growth and social well-being in developing countries. In particular, in Africa, more than 60% of the urban population, as well as almost 80% of the nonagricultural population, are employed in the informal economy. The main purpose of the study is to study the role of street commerce in supporting urban life. The object of study is one of Ethiopia’s remote cities, Matt. The extent of the impact of street commerce on the incomes of the urban population, including those who do not own land, is analyzed in the study. The study is aimed at finding patterns between the living conditions of urban population living on the brink of poverty and the dynamics of street commerce, the proceeds of which are directed to meet their daily physiological needs. The scientific approaches to the study of the relationship between the volume of street commerce and living conditions of urban population have been systematized. The source of the primary data for the survey is questionnaires that contained information on the sociodemographic profile of street traders, the extent of their activity, the amount of start-up capital, access to credit, and their main difficulties in this type of activity. Descriptive statistics methods became a methodological tool of the conducted research. The results of the empirical analysis have shown that there is a positive correlation between street commerce and the well-being of urban populations. In addition, it is found that about 37.9% of people involved in street trading are experiencing problems as a result of tightening regulatory regulations by the state. The study empirically confirms and theoretically proves that street selling is one of the important sources of urban existence in Ethiopia. The results of the study can be useful for government officials, NGOs, international institutions, as well as researchers dealing with this issue.
Keywords: street trade, livelihoods, urban poverty, alternative employment opportunities.
JEL Classification: J46, O17.
Cite as: Singh, S.N. (2020). Role Of Street Vending In Urban Livelihood (In Case Of Mettu Town). SocioEconomic Challenges, 4(1), 82-101. http://doi.org/10.21272/sec.4(1).82-101.2020.
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