STATUS AND PROBLEMS OF THE STREET VENDORS: INPUTS FOR LOCAL GOVERNMENT UNIT PLANNING

Gemma M. Solidum

Faculty, College of Business Administration, Jose Rizal Memorial State University, Philippines

DOI: 10.55559/sjahss.v2i04.102 | Received: 06.04.2023 | Accepted: 15.04.2023 | Published: 18.04.2023

ABSTRACT

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. The survey included 101 street sellers in total, and the results showed that they had 4-6 family members, a daily salary of P500 or less, and had been street vendors for at least 6 years. 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.

Keywords: Street vending, street vendors’ status, health status, socioeconomic status, common problems

Introduction

Many are currently striving to make ends meet in quite decent ways due to the extremely high cost of living. People are selling things on the city's highways and sidewalks as a strategy to increase their income despite the presence of traffic. In developing Asian countries, more than 50% of the urban working force works in unofficial jobs. The most obvious example of this is vending on the street. Yet, there are no reliable statistics on street vendors (Recio & Gomez, 2013).

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 (Jaishankar, & Sujatha, 2016).

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). 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).

Due to the intriguing junction that street vending creates between public space, economic activity, and temporalities, it is frequently the focus of academic inquiry. The latter is important since, unlike professional trading, street vending is frequently seasonal or only occurs sometimes when it helps a family supplement their income (Street Vendors of Manila, n.d.).

Commodity purchases are not simply given the ongoing market volatility. Commodities must be in line with the demands of the ordinary man or the mass, who can only afford to purchase a small number of goods depending on the amount of cash in their pockets. Perishable goods must be sold at the proper time by street vendors. They encounter numerous issues because they are a vulnerable group that neither the government nor the military is protecting (Jaishankar, et.al. 2016).

Planners and government representatives must take into account these self-help mechanisms when developing inclusive urban governance to support efforts to make cities inclusive, safe, resilient, and sustainable. This has to address the rigid formal regulations and the unstable working conditions in the unorganized sector.

At the heart of the city, street vendors are stationed largely on the boulevard and in some of the side streets selling what they call "Street Meals" from little carts. The city administration has made available a "stall" for rent to boulevard merchants so they can sell their wares. In an unstructured interview with the street vendors, they revealed some problems which the government needs to address by coming up with a policy and programs. The situation above prompted the researcher to document problems encountered by these street vendors and that this research must be conducted.

Objectives

The purpose of this study was to evaluate the status and problems facing street sellers. The findings of this study will be used to inform local government unit planning and improve current regulations on street vending.

Specifically, it aimed to (1) determine their status in terms of household size, daily income, and number of years in street vending (2) identify the problems in terms of governance and legal, socioeconomic, workplace-related, and physical problems and (3) find the differences that are notable in the problems that the street vendors face when data are categorized according to the status of the respondents.

Theoretical Framework

The basis for this study is the modernist concept of street vending. Due to the negative connotations associated with the informal sector economy, particularly street vending, it was not considered in the modernist planning paradigm, particularly street vending, it was not considered in the modernist paradigm of planning for the ideal city. Because of public order and state control goals the goals of public order and state control, modernism frequently suggested restrictions on street vendors (Cross, 2000). Instead of criminalizing street vendors and other urban space users, urban planners must adopt practical measures to address these demand-side factors (Igudia, 2020).

Although, traditionally, street vendors have either been viewed as remnants of a premodern past that is slowly vanishing (modernization theory) or as a necessity that underprivileged communities are forced into since they have no other options for making a living (structuralist theory). Yet, engagement in street entrepreneurship has recently been reinterpreted as either being done for cultural or logical economic reasons (neoliberal theory) (post-modern theory) (Williams & Gurtoo, 2012).

The theories, principles, and concepts mentioned above contributed to the discussion on the status and problems encountered by the street vendors and the reasons why street vending is considered a phenomenon not only in Dipolog City and in the Philippines in general but in a global issue.

Methodology

This study employed a descriptive-quantitative research method. A questionnaire -checklist was adapted and modified from the instrument developed by (Walsh, 2010) was administered to 101 purposively sampled stationary street vendors who carry out vending goods regularly at a specific location along the sidewalk of the streets and in the boulevard of Barangay Miputak of Dipolog City to collect quantitative data.

The instrument has two parts. Part I of the instrument gathered respondents` profiles and Part II identified the status and problems encountered by the street vendors and the degree of seriousness was determined through Likert Scaling such as 4.50-5.00 (Very Much Serious); 3.50-4.49 (Very Serious); 2.50-3.49 (Moderately Serious);1.50-2.49 (Less Serious) and 1.00-1.49 (Not Serious). Permission was sought from the Barangay Chairman of Central Barangay thru the Mayor`s Office of Dipolog City.

When the letter of permission was approved, the researcher distributed the instrument to the street vendor respondents and immediately retrieved the instrument and started tallying the results. The data were submitted to the statistician for treatment.

Results and Discussion

The discussion of the findings and suggestions is presented in this part. Here, the data collected following the study's research problem and proposed hypotheses are presented and discussed. 

Table 1. Socioeconomic Status of the Street Vendors in terms of their Household Size, Daily Income, and Number of Years in Street Vending

Table 1 shows that 41.58% of the respondents had a 4 – 6 household size while 22.77% of them had a 1 – 3; 28.71 % of the respondents had a 7 – 10; while 6.93% had more than 10 household size. This indicates that street vending remains a potential mechanism to gain employment and augment income to support basic family needs like education, health, food, and nutrition. According to the 2020 population census, the average household size in the country was 4.1 (Philippines: Number of households, 2022).

As revealed in the table, 36.66% of the respondents earned 500 pesos or less. Looking at the table closely, it can be seen that the frequencies are decreasing as the income bracket increases showing that the bulk of the street vendors is earning meager income. However, it can be seen also that 9.45% of the respondents earned more than 3,000 pesos a day indicating that street vending is much more profitable to them.

As to the number of years in street vending, 50.50% had been in street vending for more than 6 years while 26.73% had been street vending for 3 years and below. Only 22.77% of the respondents had been street vending for 4 – 6 years. This suggests that street sellers have chosen not to hunt for alternative sources of income because street vending has become a stable and reliable source of revenue for them.

Table 2. Common Problems Encountered by Street Vendors in Terms of Governance and Legal, Socioeconomic, Workplace, and Physical Problems

The street vendors encountered problems in terms of governance and legal problems. As assessed by the respondents, all the descriptors fell under the description “moderately serious” indicating that respondents experienced governance and legal problems relative to street vending occasionally. The highest mean of 2.87 was attributed to the descriptor "government refuses to legally recognize street vending" implying that the local government unit has no black-and-white policies on street vending. While street vending is permitted in designated areas, some vendors are mobile and they sometimes occupy prohibited areas. Some of these vendors were caught or reprimanded but others were not confusing street vendors themselves. Likewise rated as "moderately serious" is the descriptor "no office to accommodate street vendor`s concerns" with a mean of 2.72 specifying that street vendors sometimes felt that no particular office or government entity directly address their concerns. Bhowmik (2005) reported that street sellers are routinely harassed by the authorities and lack the legal authority to run their operations almost everywhere in Asia, including the Philippines. Nonetheless, they are popular because they provide services to the urban population that neither towns nor larger retail businesses can.

In terms of socioeconomic problems, the data showed that 4 out of 5 descriptors fell under the description "moderately serious". One of these is the descriptors "lack of capital" and "rising cost of living". These descriptors obtained average weighted means of 3.10 and 2.93, respectively. These imply that street vendors find it difficult to generate additional capital, and capital is sometimes spent on household needs. They demonstrated how the socioeconomic issues faced by street sellers are connected. Many vendors have been forced to turn to borrowing and microfinancing due to a lack of capital and the rising cost of living, but the interest rates only make their issues worse because their daily income is occasionally insufficient to support debt financing. Dhakka (2016) revealed that loans and other appropriate financial and infrastructure support could be beneficial in helping street sellers overcome their difficulties. Obtaining the lowest mean falling under the description "least serious" is the descriptor "renting a private place owned by mall owners" with an average weighted value of 2.13 implying that respondents did not even think of renting a space in a shopping mall as this move is costly to them and that their products cannot compete to what is offered in the malls.

Meanwhile, street vendors encountered workplace-related problems. In totality, workplace-related problems were said to be "much more serious" with a mean of 2.76. This signals that street vendors usually experience workplace-related problems. As revealed in the table, one descriptor was rated "very serious", one fell under "moderately serious" and three descriptors were described as "less serious". The descriptor "lack of running water, toilets, and solid waste removal" got the highest mean of 3.56. This is considered "very serious" indicating that water sources, availability of toilets, and garbage disposal remain the top workplace problem encountered by the street vendors. Water source is very essential, especially for vendors selling meals, while the accessibility of comfort rooms are a common problem for vendors regardless of their items being sold. In addition, being mostly mobile places street vendors difficulty in terms of garbage disposal. Liu et. Al. (2014) reported a lack of cleanliness expertise among street food vendors and poor infrastructure at the locations where street food is sold. The Dhakka (2016) study found that people use the city's water supply for drinking, cooking, and cleaning. The use of supply water for all purposes continues to represent a serious health risk because there is no set location for street food vending and no support from the government to guarantee the delivery of filtered water to these vendors. 

On the physical problems, street vendors considered physical problems as "less serious" with a mean of 2.48 denoting that street vendors have accustomed to the physical challenges brought by being street vendors. However, the descriptors "hard weather conditions" and "physical health problems" were considered moderately serious obtaining means of 3.21 and 2.88, respectively. This implies that street vendors consider that their livelihood poses health risks. On the other hand, the descriptor "street vendors cause traffic among sidewalk passers and transportation" was rated less serious. The lack of clearly defined places for sidewalk vendors to sell their wares in the Philippines, according to Bhowmik (2005), is their main source of contention. As sidewalk sellers cannot access piped water, they are prohibited for health reasons. They are also held accountable for the squalor on the streets and the traffic congestion.

Table 3. Test of Significant Differences in the Responses on the Governance and Legal Problems when data are grouped according to their Household Size, Daily Income, and Number of Years in Vending

Legend: α = .05 ns – not significant

Table 3 shows that the computed F-ratio 0.58 resulted in a probability of acceptance coefficient of more than 5 percent. Therefore, there is no significant difference in the respondents' responses on governance and legal problems when grouped according to household size. This would show that household size is not an indicator for the street vendors to vary in their experiences in terms of governance and legal problems. Street vendors having small or big household size experience similar governance and legal problems. 

When grouped according to their daily income, the results showed that the computed F-ratio had a probability of acceptance coefficient of lesser than 5 percent which showed that the hypothesis is rejected. There is, therefore, a significant difference in the respondents' responses on governance and legal problems when grouped according to daily income. This would show that daily income is a determinant for the street vendors to vary in their experiences in terms of governance and legal problems. Looking closely at the means, it was found that high-earning street vendors experienced less serious governance and legal problems. This could be because high earning indicates the availability of funds and resources for legal processes and access to offices and policies concerning street vendors.

In terms of the number of years in street vending, the results showed that the computed F-ratio of 2.63 had a probability of acceptance coefficient of more than 5 percent which showed that the hypothesis is not rejected. Therefore, there is no significant difference in the respondents' responses on governance and legal problems when grouped according to the number of years in street vending. This would show that length of years in street vending is not an indicator for the street vendors to vary in their experiences in terms of governance and legal problems. This implies that new or old street vendors experience similar governance and legal problems.

Table 4. Test of Significant Difference the Responses of the Respondents on the Socioeconomic Problems when Grouped according to Household Size, Daily Income, and Number of Years in Street Vending

Legend: α = .05 sig – significant

Table 4 shows the test of significant differences in the responses of the street vendors on the "Socioeconomic Problems" when grouped according to Household Size, Daily Income, and Number of Years in Street Vending". The results in the table indicated that the hypothesis is rejected since the computed F-ratio of 3.30 had a probability of acceptance coefficient that was less than 5%. There is therefore a significant difference in the respondents' responses on socioeconomic problems when grouped according to their household size. This would show that the household size of the street vendors is a contributory factor to socioeconomic problems. Examining deeply the means, it was revealed that larger household size results in a more serious socioeconomic problem. This implies that having a larger household size tends to result in a lack of capital as income is not enough to sustain daily needs.

In terms of the daily income of the street vendors, the results showed that the computed F-ratio of 4.73 had a probability of acceptance coefficient of lesser than 5 percent which showed that the hypothesis is not rejected. There is therefore a significant difference in the respondents' responses on socioeconomic problems when grouped according to their daily income. This would show that daily income is an important predictor for street vendors to vary in their experiences in terms of socioeconomic problems. Upon a close look at the means, earning higher daily income results in lesser socioeconomic problems as higher income denotes bigger profit. Due to larger profits, vendors can sustain and augment capital, expand a business, avail of loan opportunities for business expansion, and able to provide household needs.

Meanwhile, in the test of significant differences in the respondents' responses on socioeconomic problems when grouped according to the number of years in street vending, the results showed that the computed F-ratio had a probability of acceptance coefficient of more than 5 percent which showed that the hypothesis is not rejected. There is therefore no significant difference in the respondents' responses on socioeconomic problems when grouped according to the number of years in street vending. This would show that length of years in street vending is not an indicator for the street vendors to vary in their experiences in terms of socioeconomic problems. Having been a street vendor for a longer length of time does not guarantee lesser socioeconomic problems. This indicates that there were street vendors who have not responded successfully to socioeconomic problems despite vending for a longer period.

Table 5. Test of Significant Difference the Responses of the Respondents on the Workplace Related Problems when Grouped according to Household Size, Daily Income, and Number of Years in Street Vending

Legend: α = .05 sig – significant

When categorized according to "Household Size, Daily Income, and Number of Years in Street Vending," the street vendors' responses to concerns about "Workplace Related Issues" were tested for statistically significant differences and are shown in Table 5. The results in the table indicated that the estimated F-ratio for household size had a probability of acceptance coefficient of greater than 5%, indicating that the hypothesis is not rejected. There is therefore no significant difference in the respondents' comments on workplace-related difficulties when classified according to their household size. This would demonstrate that household size is not a predictor of differences in street sellers' experiences with issues linked to their places of employment. This suggests that a large or small household size indicates fewer issues at work.

The results in the table indicated that the computed F-ratio of 3.23 had a probability of acceptance coefficient of less than 5%, indicating that the hypothesis is rejected. The test was designed to determine whether there were significant differences in the respondents' responses to workplace-related problems when grouped according to their daily income. There is therefore a significant difference in the respondents' responses on workplace-related problems when grouped according to daily income. This would show that income is an indicator for street vendors to vary in their experiences in terms of workplace-related problems. High and low-earning street vendors experience workplace-related problems to varying degrees. Post hoc analysis revealed that high-earning street vendors cite workplace-related problems to a lesser extent compared to low-earning vendors. This implies that high-earning street vendors are stationary or have a regular location of stalls. High-earning vendors could afford to permit and rent permanent spaces and many of these have installed potable water sources, with space free from obstruction of traffic and other fellow street vendors. 

When the respondents were grouped according to the number of years, they had been street vending, the test of significant differences in responses on workplace-related issues revealed that the computed F-ratio of 1.70 had a probability of acceptance coefficient of more than 5%, indicating that the hypothesis is not rejected. So, when the respondents are categorized according to the length of time, they have been street vending, there is no discernible variation in their comments about workplace-related issues. This would demonstrate that the length of time street vendors has been selling their wares is not a reliable measure of how they have dealt with issues at work. Similar issues about the job affect street sellers.

Table 6. Test of Significant Difference the Responses of the Respondents on the Physical Problems when Grouped according to Household Size, Daily Income, and Number of Years in Street Vending

Legend: α = .05 ns – not significant

Table 6 presents the data on the test of significant differences in the responses of the street vendors on the “Physical Problems” when grouped according to “Household Size, Daily Income and Number of Years in Street Vending”. On the test of significant differences in respondents' responses on the physical problems when grouped according to their household size, the results in the table showed that the computed F-ratio of 0.94 yielded a p-value of 0.425 which leads to the non-rejection of the null hypothesis. It is therefore safe to say that there is no significant difference in the respondents' responses on the physical problems when grouped according to household size. This means that household size is not an indicator of the extent of experiencing physical problems with street vending. This indicates that street vendors whether having small or big household sizes experience physical problems to the same extent.

The results in the table showed that the computed F-ratio of 2.21 yielded a probability of acceptance coefficient of greater than 5%, which showed that the hypothesis is not rejected. The test was designed to determine whether there were significant differences in the respondents' responses to physical problems when grouped according to their daily income. So, when the respondents are categorized according to daily income, there is no discernible variation in their comments about physical difficulties. This would show that daily income is not an indicator for street vendors to vary in their experiences in terms of physical problems. Low or high-earning street vendors experience the same extent of physical problems. Earning a high income does not guarantee lesser physical problems as streets intended for vendors are limited.

In the test of difference on the respondents' responses on physical problems when grouped according to the number of years in street vending, the results in the table showed that the computed F-ratio of 2.06 had a probability of acceptance coefficient of greater than 5 percent which showed that the hypothesis is accepted. There is therefore no significant difference in the respondents' responses on physical problems when grouped according to the number of years in street vending. This would show that number of years in street vending is not an indicator for the street vendors to vary in their experiences in terms of physical problems. Whether street vending for 6 or below or more years, street vendors do not experience the varying extent of physical problems. This further indicates that new or old street vendors dealt with physical problems to the same extent.

Conclusion

The study hereby concludes that as the daily income of street vendors increases, problems in terms of governance and legal, socioeconomic, and workplace-related become less serious. In addition, the larger the household size of street vendors, the more likely they encounter socioeconomic problems; and more physical problems are likely encountered for older street vendors.

Recommendation

In light of the findings of the study, Local Government Unit has to utilize the results of this study as inputs in its planning and enhancing existing policies related to street vending among the city`s constituents.

References

(2006). HAWKERS AND THE URBAN INFORMAL SECTOR: A STUDY OF STREET VENDING IN SEVEN CITIES Prepared by Sharit K. Bhowmik for National Alliance of Street Vendors of India (NASVI).

Ballesteros, M. M., Ramos, T. P., & Ancheta, J. A. (2022, August 18). Measuring Housing Affordability in the Philippines [PHILIPPINE INSTITUTE FOR DEVELOPMENT STUDIES]. https://www.pids.gov.ph/publication/discussion-papers/measuring-housing-affordability-in-the-philippines

Chen, M. A. (2012). The Informal Economy: Definitions, Theories, and Policies. Women in Informal Employment Globalizing and Organizing (WIEGO) Working Papers. https://www.wiego.org/sites/default/files/publications/files/Chen_WIEGO_WP1.pdf

Cross, J. C. (2000). Street Vendors, and Postmodernity: Conflict and Compromise in the Global Economy. International Journal of Sociology and Social Policy, 29-51. https://doi.org/10.1108/01443330010789061

Igudia, E. O. (2020). Exploring the theories, determinants, and policy options of street vending: A demand-side approach. Urban Studies, 57(1), 56–74. https://doi.org/10.1177/0042098019835736

Jaishankar, V., & Sujatha, L. (2016). A Study on Problems Faced by the Street Vendors in Tiruchirappalli City. SSRG International Journal of Economics and Management Studies (SSRG – IJEMS), 3(9), 40-43. https://www.internationaljournalssrg.org/IJEMS/2016/

Jimu, J. (2004). An Exploration of Street Vending's Contribution towards Botswana's Vision of Prosperity for All by 2016. Pula: Botswana Journal of African Studies, 18, 19-30. https://www.semanticscholar.org/paper/An-Exploration-of-Street-Vending

Kumar, R. and Dhaka, J. (2016) Review Paper on Partial Replacement of Cement with Silica Fume and Its Effects on Concrete Properties. International Journal for Technological Research in Engineering, 4, 83-85.

Ma, L., Chen, H., Yan, H. et al. (2019). Food safety knowledge, attitudes, and behavior of street food vendors and consumers in Handan, a third-tier city in China. BMC Public Health 19, 1128. https://doi.org/10.1186/s12889-019-7475-9

Menes, C. C., Japitana, MA. F., Chua, JG. D., Dico, M. R., Parcon, AM. D., & Makilan, R. E. (2019). Street Food: Stories and Insights on Production and Operations, Marketing Strategies, and Vending. Philippine Journal of Hospitality and Tourism Management, 1(1), 42-69. https://lcc.edu.ph/wp-content/uploads/2023/01/03-Street-Food-Stories-and-Insights-on-Production-and-Operations-Marketing-Strategies-Vending

Njaya, T. (2014). Operations of Street Food Vendors and Their Impact on Sustainable Urban Life in High-Density Suburbs of Harare, in Zimbabwe. ASIAN JOURNAL OF ECONOMIC MODELLING, 2(1). https://doi.org/10.18488/journal.8.2014.21.18.31

Panwar, M. (2015). ISSUES AND CHALLENGES FACED BY VENDORS ON URBAN STREETS: A CASE OF SONIPAT CITY, INDIA. International Journal of Engineering Technology, Management, and Applied Sciences, 3(2), 71-84. https://www.researchgate.net/publication/280310189

Recio, R. B., & Gomez, J. E. (2013). Street vendors, their contested spaces, and the policy environment: A view from Caloócan, Metro Manila. Environment and Urbanization ASIA, 4(1), 173-190. https://doi.org/10.1177/0975425313477760

Street vendors of Manila. (n.d.). https://sueuaa.org/blog/street-vendors-manila

Walsh, J. (2010). Street Vendors and the Dynamics of the Informal Economy: Evidence from Vung Tau, Vietnam. Asian Social Science, 6. DOI: 10.5539/ass.v6n11p159

Williams, c., & Gurtoo, a. (2012). Evaluating Competing Theories of Street Entrepreneurship: Some Lessons from a Study of Street Vendors in Bangalore, India. International Entrepreneurship and Management Journal, 8(4), 391-409. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2706144