ASSESSMENT OF THE PRACTICES AND CHALLENGES OF STREET VENDING BUSINESS IN THE CASE OF ARADA SUB CITY ADMINSTRATION OF ADDIS ABABA CITY, ETHIOPIA

Abstract

This study focused on assessing the practices and challenges of street vending in the city of Addis Ababa, examined the main source of capital and identified the reasons why people are engaged in street vending business; A descriptive survey design was used and a purposive sample of two respondent groups, namely government officials and the street vending business participants was drawn. Data were generated through personal interviews and surveys questionnaires. The purpose of the interviews of the first respondent group was to discover their perception of the street vending business in Addis Ababa City in general and in Arada sub city in particular. Their perception was vital as this group influences government policies much more than the general public. The data collected from street vending business participants allowed to generate information related to practices and challenges of street vending business. Its level of operation and scope as well as the benefits and their success with a particular focus in Arada sub city. The results show that there were mixed feelings among the people in each of the two respondent groups. Although many of the government officials were positive, mainly because the government’s policy of free enterprise and promote the formalization of the street vending business publicly, they still believe there is a need to control the sector’s operations. More than 83 percent of the streets vending business participants are making a comfortable livelihood through their activities despite some difficulties. The lack of employment in the formal sector and the desire to survive were found to be the two pressing problems that enhance the growth of the streets vending business in Arada sub city. The participants could further expand their street vending business activities if access to credit facilities and working space were made available. However, further research is required on the size and contribution of this sector to poverty alleviation and economic growth.