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Street Vendors and their Challenges in Business

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STREET VENDORS AND THEIR
CHALLENGES

Couse Code: DS-409, Microfinance-II

JULY 4, 2023
TOOBA BINTE ARIF
DS-037
Table of Contents
Chapter 01: Introduction ........................................................................................................ 2
Acknowledgement: .................................................................................................................... 2
Problem Statement: .................................................................................................................... 2
Concepts:.................................................................................................................................... 3
Justification of the Study: .......................................................................................................... 3
Objectives: ................................................................................................................................. 3
Hypothesis: ................................................................................................................................ 3
Variables: ................................................................................................................................... 3
Key Concepts: ............................................................................................................................ 4
Chapter 02: Literature Review ............................................................................................... 4
Introduction: ............................................................................................................................... 4
Street Vending Contribution All Over The World: ................................................................... 5
No land for Vendors: ................................................................................................................. 6
Challenges: ................................................................................................................................. 8
Role of Women in Street Vending: .......................................................................................... 10
Link with SDG Goal 15: .......................................................................................................... 11
Street Vending in Pakistan: ...................................................................................................... 12
Conclusion: .............................................................................................................................. 15
Chapter 03: Methodology of the Research .......................................................................... 16
Introduction: ............................................................................................................................. 16
Type of the Study: .................................................................................................................... 16
Case Study Areas: .................................................................................................................... 16
Sample Size:............................................................................................................................. 16
Sampling: ................................................................................................................................. 16
Tools of Data Collection: ......................................................................................................... 17
Pre-testing: ............................................................................................................................... 17
Chapter 4: Interpretation and Analysis of data .................................................................. 17
Findings: .................................................................................................................................. 17
Correlation coefficient/ chi square: .......................................................................................... 24
Analysis: .................................................................................................................................. 25
Chapter 05: Conclusion ......................................................................................................... 27
Limitations of the Research: .................................................................................................... 27

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Recommendations: ................................................................................................................... 27
Bibliography: ........................................................................................................................... 28
Questionnaire: .......................................................................................................................... 28

Chapter 01: Introduction

Acknowledgement:
I would like to express my sincere appreciation and gratitude to all those who have contributed
to the completion of this research paper on the challenges faced by street vendors in running
their businesses.

First and foremost, I would like to extend my heartfelt thanks to my supervisor, Ma’am Manahil
Wajahat, for their guidance, support, and expertise throughout the research process. Their
invaluable input and constructive feedback have greatly contributed to the quality and rigor of
this study. I am truly grateful for their patience, encouragement, and unwavering belief in the
importance of this research.

I am deeply grateful to the street vendors who generously shared their valuable time,
experiences, and perspectives for this study. Their willingness to participate and provide
insights has been instrumental in shedding light on the difficulties they encounter in their daily
lives as entrepreneurs. Their resilience and determination inspire me to advocate for their rights
and well-being.

Finally, I would like to express my deepest gratitude to all the researchers and scholars whose
works I have referenced and consulted in this paper. Their insightful studies and contributions
to the field of street vending have laid the foundation for this research and have been
instrumental in shaping my understanding of the subject matter.

Problem Statement:
The street vending sector is a significant component of informal economies worldwide.
However, street vendors often encounter numerous challenges that hinder the smooth operation
of their businesses. These challenges range from inadequate infrastructure and legal restrictions
to limited access to resources and financial services. Understanding and addressing these
problems are essential for creating a supportive environment that fosters the growth and
sustainability of street vendors' businesses.

2
Concepts:
This study aims to explore the various factors that contribute to the challenges faced by street
vendors. These factors may include but are not limited to:

1. Legal and illegal regulatory frameworks

2. Infrastructure and workspace availability
3. Social stigma and marginalisation
4. Urban planning and space allocation
5. Social and cultural barriers

Justification of the Study:

Street vendors play a vital role in the local economy by providing goods and services to a
diverse customer base, particularly in urban areas. Despite their economic significance, the
challenges they face are often overlooked, resulting in a lack of appropriate support
mechanisms. By understanding and highlighting these issues, this study aims to contribute to
the development of policies and interventions that can improve the working conditions and
livelihoods of street vendors.

Objectives:
The main objectives of this research paper are as follows:

1. To identify the key challenges faced by street vendors in running their businesses.
2. To analyse the impact of these challenges on the socio-economic well-being of street
vendors.
3. To explore the existing support mechanisms and policies available to street vendors.
4. To propose recommendations and strategies to address the identified challenges and
improve the working conditions of street vendors.

Hypothesis:
The following hypothesis will guide this research:

1. Street vendors face significant challenges that hinder the growth and sustainability of
their businesses.
2. Inadequate infrastructure, legal and illegal restrictions, and limited access to resources
negatively impact the socio-economic well-being of street vendors.
3. Implementing supportive policies and interventions can improve the working
conditions and livelihoods of street vendors.

Variables:
The key variables in this study are as follows:

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 1. Independent Variable: Challenges faced by street vendors.
2. Dependent Variable: Socio-economic well-being of street vendors.

Key Concepts:
To ensure a common understanding, the following key concepts are defined in this research
paper:

1. Street Vendors: Individuals engaged in selling goods or services on the streets,

sidewalks, or other public spaces.
2. Challenges: Difficulties, obstacles, or constraints encountered by street vendors in
running their businesses.
3. Socio-economic well-being: The overall welfare, including economic and social
aspects, of street vendors.
4. Support Mechanisms and Policies: Existing initiatives, programs, and regulations
designed to assist and protect street vendors.

Chapter 02: Literature Review

Introduction:
This literature review provides an overview of street vending, its challenges, and the role of
women in this informal economic activity under the light of Sustainable development goal 15:
life on land. Street vending is known by various local names in everyday language. Different
regions and countries refer to this practice as street peddling, street hawking, informal trading,
or street vending. In Latin American countries, terms such as "Ambulantes" and
"Comerciantes" are commonly used. However, in academic discourse, the term "street
vending" is most widely employed. Also serving as a basis for this book is a definition from
India’s National Policy For Urban Street Vendors of 2009, which frames street vending as a
mobile, space-bound, predominantly urban practice:

“A street vendor is broadly defined as a person who offers goods for sale to the public without
having a permanent built-up structure but with a temporary static structure or mobile stall
(or headload). Street vendors may be stationary by occupying space on the pavements or
other public/private areas or may be mobile in the sense that they move from place to place
carrying their wares on push carts or in cycles or baskets on their heads, or may sell their
wares in moving trains, buses, etc. [T]he term urban vendor is inclusive for both traders and

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service providers, stationary as well as mobile vendors, and incorporates all other
local/region specific terms used to describe them, such as hawker, peri walla, Shri Patri
walla, footpath dukandars, sidewalk traders, etc. (Bhowmik 2010: xv)”.

Street vending should not be confused with formalised markets organised by a market operator,
held regularly at fixed times and locations, such as farmers' markets, Christmas markets, or flea
markets. In this context, "street vending" specifically refers to the sale of products by
individuals or groups of vendors, sometimes in a market-like setting. vendors sell goods, some
offer services, and others engage in a combination of both. Some vendors remain fixed in one
location, utilising a kiosk or a sturdy stall that remains in place for extended periods, secured
and supervised by a watchman when not in use. Others employ mobile stalls that are wheeled
out from a storage facility to the selling position at the beginning of the workday and pushed
back at the end. Some vendors remain fixed but lay out their merchandise directly on the ground
or on a cloth or plastic sheet. (Ray Bromley, 2000).

Street Vending Contribution All Over The World:

Street vendors and market traders are a significant proportion of the urban labour force in
developing countries. In Africa, the informal sector of the economy, often overlooked by
government statisticians, is bustling and vibrant. In South Africa, street vending contributes
approximately 7% to the national gross domestic product (GDP) and accounts for 22% of total
employment in the country. According to Nevin, informal traders in South Africa generate an
annual revenue of ZAR 32 billion. Street vending serves as an important source of employment
for individuals who operate outside the formal sector of the economy due to factors such as
limited education, high unemployment rates, and immigration policies. (Fadia Gamieldien,
Lana van Niekerk, 2017)

The number of street vendors in Indian cities has witnessed significant growth in recent years.
According to the Ministry of Housing and Urban Poverty Alleviation, there are approximately
10 million street vendors in India. Major cities like Mumbai have around 250,000 vendors,
Delhi has 450,000, Kolkata has over 150,000, and Ahmedabad has 100,000. The majority of
these vendors are migrants or impoverished labourers who work an average of 10-12 hours per
day, yet still struggle to escape poverty.

As per the Ministry of Housing and Urban Poverty Alleviation, street vendors in India
contribute more than 50% of the country's savings, and an impressive 63% of the GDP comes
from their economic activities. (Architect Tikam Singh, 2022)

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In the research report titled "Upwardly Mobile: Street Vending and the American Dream," the
Institute for Justice (IJ) examined the economic impact of New York City's street vendors in
2012 and made the following key findings:

1. Street vendors generated an estimated $71.2 million in local, state, and federal taxes.
2. Vendors contributed nearly $293 million to the city's economy.
3. Vendors contributed $192 million in wages.
4. Vendors supported 17,960 jobs in the city.

Dr. Dick Carpenter, the director of strategic research at IJ and the author of the report,
highlighted the significant influence of New York City's vendors on the local economy. He
emphasised that these vendors are hard-working entrepreneurs and job creators who not only
contribute millions of dollars in taxes but also play a crucial role in fostering economic growth.
Dr. Carpenter emphasised the importance of encouraging and supporting these small-business
owners in the city. These stats change in recent years; The market size of street vendors in the
United States is projected to reach $2.8 billion in 2023. This represents a growth rate of 1.1%
compared to the previous year. Over the period of 2018 to 2023, the annualised market size
growth of street vendors in the US is estimated at 8.8%.

No land for Vendors:

Many street vendors encounter challenges in operating their businesses, despite the relatively
straightforward setup. They often face humiliation and frustration due to interactions with local
police and street gangsters. These individuals, even though the vendors have registered their

6
stalls, typically demand a portion of the vendors' income. If anyone is reluctant to give them a
share, these individuals resort to destroying the vendors' stalls. The government also conducted
campaigns aimed at removing street vendors and informal traders from major roads and
walkways.

In Asia, street vending in Bangkok has garnered significant media attention. Before the military
coup of 2014, Bangkok was seen as a prime example of progressive vendor integration.
However, since 2014, the Bangkok Metropolitan Administration (BMA), following orders
from the military junta, has been systematically removing vendors with the aim of "returning
the footpath to pedestrians." The BMA claims to have relocated 20,000 licensed street vendors
from 478 locations and has identified an additional 205 locations requiring attention. It is
important to note that these figures only represent licensed vendors, and the impact on
unlicensed vendors has been even more substantial. These actions by the BMA have faced wide
condemnation from both local and international press, resulting in significant resistance from
the affected vendors.

India's Street Vending (Protection of Livelihood and Regulation of Street Vending) Act of 2014
is often hailed as a commendable model. The Act mandates local authorities to establish rules,
schemes, and governance structures, such as Town Vending Committees, that incorporate
vendors and legitimise their right to engage in vending activities. However, concerns have been
raised regarding the pace and nature of the Act's implementation, as reported in the media. For
instance, in August 2018, during a street vendor census conducted by the municipal corporation
in Ahmedabad, Gujarat, a demolition squad reportedly cleared 5,000 street vendors and
demolished 19,500 structures. In Delhi, a Special Task Force has been regularly evicting
vendors throughout the city to address non-conforming premises according to the 2021 Delhi
Master Plan. Additionally, there are instances where the Act's implementation has resulted in
a reduction in the number of vendors, such as in Mumbai and Chandigarh.

In February 2019, the Centre for Civil Society, a Delhi-based think tank, released an analysis
of the Act's implementation based on interviews conducted across 30 states and a review of
court judgments. The report concluded that vendors continue to be excluded from crucial urban
space management decisions and characterised the implementation as sluggish. Consequently,
vendor organisations in India are increasingly seeking relief through legal avenues. Notably,
the Supreme Court of India has ruled that state governments must publish their street vendor

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rules. However, it is important to note that not all court rulings have favoured vendors. For
instance, in November 2018, the Punjab and Haryana High Court instructed the director general
of police to remove all unauthorised businesses from footpaths. (WIEGO,2020). many
incidents highlight the sensitivity of this issue:

1. Zimbabwe, 2005: In Harare, the capital city of Zimbabwe, the government

implemented a controversial urban renewal campaign called "Operation
Murambatsvina" (Operation Drive Out Trash). As part of this campaign, street vendors'
stalls were demolished, and their goods were confiscated, leaving many vendors
without a source of income. (Wole Olaleye, Ozias Tungwarara, 2005)
2. Thailand, 2020: In Bangkok, Thailand, during the COVID-19 pandemic, authorities
ordered the closure of street markets to prevent the spread of the virus. As a result,
many street vendors' stalls were forcibly dismantled and removed by officials. (Chalida
Ekvitthayavechnukul And Patrick Quinn, 2021)
3. Nigeria, 2018: In Lagos, Nigeria, the government embarked on a cleanup exercise
known as "Operation Restore Sanity" aimed at removing street vendors and informal
traders from major roads and walkways. During this operation, stalls were destroyed
and goods confiscated, leading to protests by affected vendors. (Premium Times, 2018)
4. Tunisia 2010: The Tunisian street vendor Mohamed Bouazizi burned himself to death
in protest of the police’s enduring, humiliating treatment of street vendors. He had been
his family’s main provider since he was ten years old. Selling fruits and vegetables on
the streets of Sidi Bouzid, a rural town in central Tunisia, he was assaulted and harassed
almost daily by local police officers who confiscated his goods and found him not
possessing a permit. (Kristina Graaff and Noa Ha, 2010)

These campaigns are for the restoration of public space but after the removal of these illegal
stalls, the government doesn't give any alternative.

Challenges:
Street vending is a pervasive economic activity found in urban areas across the globe. It
provides a source of income and employment for a significant portion of the population,
particularly in developing countries. However, street vendors face various challenges and

8
problems that affect their livelihoods and hinder their economic and social well-being. This
literature review aims to explore the existing body of research and scholarly works on street
vendors and the problems they encounter.

1. Legal and Regulatory Challenges:

One prominent issue faced by street vendors is the lack of legal recognition and ambiguous
regulatory frameworks. Many street vendors operate in the informal sector, facing difficulties
in obtaining permits and licences to conduct their businesses legally. The absence of clear
regulations often leads to harassment, evictions, and confiscation of their goods by local
authorities.

2. Social Stigma and Discrimination:

Street vendors often face social stigma and discrimination based on their occupation. They are
sometimes perceived as occupying public spaces, leading to conflicts with urban planners,
formal businesses, and residents. Negative stereotypes and biases can lead to exclusion,
marginalisation, and limited opportunities for growth and development.

3. Lack of Infrastructure and Basic Services:

Inadequate infrastructure and a lack of basic services pose significant challenges for street
vendors. Limited access to clean water, sanitation facilities, electricity, and waste management
systems affects their working conditions and overall well-being. The absence of designated
vending areas or market infrastructure further hampers their ability to conduct business
effectively.

4. Insecurity and Harassment:

Street vendors are often vulnerable to exploitation, harassment, and extortion by local
authorities, law enforcement agencies, and organised criminal groups. Demands for bribes or
protection fees are common, leading to financial burdens and an atmosphere of insecurity and
fear. Violence and the destruction of stalls are not uncommon when vendors refuse to comply
with such demands.

5. Limited Access to Finance and Resources:

Street vendors face challenges in accessing formal financial services, making it difficult to
expand their businesses or invest in necessary resources. Lack of credit, limited savings, and a

9
reliance on informal lending sources constrain their ability to access capital and improve their
economic prospects.

6. Vulnerability to Economic Shocks:

Street vendors are highly vulnerable to economic shocks, such as natural disasters, economic
crises, or the current COVID-19 pandemic. Their livelihoods heavily rely on daily sales, and
disruptions in economic activity can have severe consequences, pushing them further into
poverty and precarity.

Role of Women in Street Vending:

Women play a crucial role in the realm of street vending, both in the Global South and the
Global North. Studies indicate that in the Global South, women represent a substantial portion
of street vendors, ranging from 30 to 90 percent. However, in countries where Islam is the
predominant religion, the visible participation of women in street vending may be relatively
lower, although they often assume vital responsibilities in product preparation, particularly in
the food sector. In the Global North, women, particularly female migrants, and women of
colour, make significant contributions to family-run street vending businesses. Their
involvement takes on various forms, enriching the overall dynamics and success of these
enterprises.

One notable aspect is that women often venture into street vending as it allows them to better
reconcile their reproductive and productive labour within their daily lives. Street vending offers
them a means to generate income while also attending to their family duties, highlighting the
enduring reality of women carrying the double burden of household responsibilities and income
generation.

The type of product sold by street vendors is closely linked to gender. Women tend to be more
engaged in the vending of food, regardless of geographical location. This association may be
influenced by cultural norms, traditional gender roles, and the specific skills and knowledge
women possess in food preparation and culinary practices. The profitability of vending spaces
and market dynamics can impact gender distribution among street vendors. Women often find
themselves working in less profitable areas, reflecting the structural barriers they face in
accessing more lucrative markets. This further underscores the need to address gender

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disparities and provide support mechanisms to enhance the economic opportunities available
to women in street vending.

Research conducted on street vending in the Global South reveals that women represent a
significant proportion, ranging from 30 to 90 percent, of street vendors in this region. In
countries where Islam is the dominant religion, such as Bangladesh, the visible participation of
women in street vending is relatively lower. However, they play a crucial role in product
preparation, particularly in the food sector. Similarly, in cities of the Global North, women,
especially female migrants, and women of colour, contribute in diverse ways to family-run
businesses. A closer examination of their practices indicates that women often enter street
vending as it allows them to better balance their reproductive and productive labour in their
daily lives. This highlights that, despite some improvements, women still carry the burden of
family responsibilities along with income generation. The type of product sold is closely linked
to the gender of the vendors, with women more frequently involved in food vending in both
the South and the North. Moreover, the profitability of vending spaces influences the gender
distribution of vendors, with women typically working in less lucrative areas.

Link with SDG Goal 15:

Topic can be linked to Sustainable Development Goal 15, which focuses on protecting,
restoring, and promoting sustainable use of terrestrial ecosystems, sustainably managing
forests, combating desertification, and halting biodiversity loss. Here are some of the
challenges faced by street vendors and their connection to SDG 15:

1. Limited access to natural resources: Street vendors often rely on natural resources
for their products or materials. Their challenges in accessing and utilising these
resources can be linked to SDG 15's objective of sustainable use and management of
terrestrial ecosystems.
2. Urbanisation and loss of natural habitats: As cities expand and urbanisation
increases, natural habitats are often destroyed or degraded. Street vendors, who operate
in urban areas, may face challenges due to the loss of natural habitats, which affects the
availability of resources for their livelihoods.
3. Land use and tenure rights: Street vendors often struggle with secure land tenure
rights, as they face eviction or displacement from their vending spaces. This challenge

11
 can be connected to SDG 15's aim of sustainable land use, land rights, and land
degradation neutrality.
4. Environmental sustainability: Street vending activities can have environmental
impacts, such as waste generation or pollution. Addressing these challenges aligns with
SDG 15's goal of promoting sustainable practices and reducing environmental
degradation.
5. Conservation of biodiversity: Street vendors involved in selling products derived
from natural resources, such as handicrafts or traditional medicines, may be affected by
the loss of biodiversity. Protecting biodiversity and ensuring sustainable sourcing of
natural products can be linked to SDG 15's objectives.

Street Vending in Pakistan:

The street economy holds significant importance in a country where joblessness is widespread.
According to estimates by the Pakistan Institute of Development Economics (PIDE), street
vending has the potential to create 20 million jobs. The Labor Force Survey 2020-2021
revealed that new graduates have a one-third chance of finding employment in the informal
sector. Additionally, street vending generates an estimated revenue of Rs 36-43 billion.

It is crucial to recognize that street vendors are indispensable for the country's survival, a fact
often overlooked by the privileged class in Pakistani society. Dr. Anwar Shah, an Associate
Professor at Quaid-i-Azam University, emphasised during the Pakistan Institute of
Development Economics (PIDE) Research for Social Transformation and Advancement
(RASTA) conference that "Khokas" (small vendor shops) constitute a vital segment of the
informal economy in Pakistan. They provide employment opportunities and facilitate various
types of transactions for consumers.

The street economy in Pakistan serves as a source of livelihood for millions of people from low
and middle-income groups. Street vendors have the advantage of minimising expenses by
avoiding rent, electricity bills, and employee salaries. They also play a crucial role in the supply
chain by directly selling products and services to customers at affordable prices and supplying
their produce to retailers. Street vendors exhibit adaptability, readily adjusting to changing
conditions such as flexible timings and shifting locations, which benefits their clients.

12
Furthermore, the street economy embodies the essence of Pakistan, its history, and its culture,
adding vibrancy to urban settings.

The bias against street vendors shown by the privileged class is unfounded. Dr. Nadeem ul
Haque, Vice Chancellor of PIDE, rightly pointed out that it is peculiar to see street vendors
near prominent landmarks such as the White House, Congress, and other places, while no such
presence exists on Constitution Avenue in Islamabad. Similarly, if hawkers can operate near
Buckingham Palace and the Parliament, there is no reason why "khakhras" cannot exist near
the Governor's House, Gymkhana, Punjab Club, and the Corps Commander house in Lahore.
However, street vendors face numerous challenges within the street economy. While the sector
offers fewer entry barriers and does not require education, licences, or significant capital,
vendors encounter various issues. Despite working long hours, most street vendors earn less
than those in formal jobs. They constantly face the risk of raids, public backlash, and
harassment from authorities. Many vendors are compelled to pay rent to shop owners to set up
their carts, making them susceptible to exploitation and eviction threats. To protect themselves,
they often resort to bribing the police, although this is not always foolproof. Under pressure
from the elites, the police sometimes turn against the vendors, resulting in evictions,
confiscation of goods, or destruction of their products.

Street vendors are persecuted for operating outside the legal framework, yet the authorities fail
to acknowledge the absence of a functional legal system that enables them to obtain the
necessary documentation. This situation in Pakistan can largely be attributed to the political
landscape. Researchers Noman Ahmad, Muhammad Nasir, and Dr. Faiz Ur Rehman, in their
paper titled 'Political Dynasties and Local Economic Development in Pakistan,' highlight that
political institutions and politicians play a significant role in exacerbating inter-regional
inequality by redirecting resources towards their own regions, thereby impacting the least
developed areas.

In addressing the challenges faced by street vendors, the government has taken certain
initiatives. The Ehsaas Street Hawkers' Initiative aims to protect the rights of street vendors.
The government drafted a legislative bill in 2020, which proposed that every street vendor
should obtain a licence for Rs. 500 per month. The licence would be valid for 5 years, and
ownership would remain with the vendor once issued. The bill also prohibits children under 14
years from working as street vendors. Violations would result in the confiscation of products,

13
which would be returned upon settlement. If authorities confiscate materials without valid
reasons, they would be fined Rs. 20,000. The initiative has already issued approximately 200
vendor licences to those operating in Islamabad. Under the Ehsas Meherbaan Initiative, eco-
friendly carts have been provided to several vendors in specific sectors of Islamabad. Vendors
have acquired these carts through microfinance loans or by purchasing them. The initiative also
includes a quota for women and transgender vendors. The initiative has yielded positive results,
collecting Rs 3.5 million in licence fees, Rs 17.5 million in capital investment, and Rs 11.5
million in cart loans as of January 2022. To create inclusive and smart cities, inclusive urban
planning and the implementation of policies outlining the rights and laws of the street economy
are imperative. These measures would ensure that all segments and members of society have a
place in the urban landscape.

There have been instances in Pakistan where street vendors' stalls have been destroyed, despite
various initiatives aimed at legalising and improving the environment for street vendors. In one
incident, a poor beverage vendor selling from a stall in the Bahawalnagar district was subjected
to inhumane torture by three individuals late on a Friday night. The incident took place in Chak
Chaveka village of Bahawalpur district when the vendor asked the suspects for money. They
physically assaulted the victim, shaving off his facial hair, including his moustache and
eyebrows. The suspects also injured his tongue, intending to instil fear. The victim was later
taken to the hospital for medical assistance. The police have initiated an investigation, arresting
a suspect so far, and conducting raids to apprehend the remaining suspects (Dunya News).

Another incident occurred in Islamabad's 1-10 sector, where 42 street vendors faced a
devastating turn of events on a regular Friday. At 3:00 am, without warning, bulldozers arrived
and demolished their carts, reducing them to rubble beyond repair. The city administration also
confiscated many other carts, and vendors who resisted were subjected to physical violence. In
a matter of minutes, the livelihoods of 42 families were abruptly taken away by this harsh act
carried out by the city government.

Unfortunately, such violent destruction of livelihoods is not uncommon. Street vendors,

estimated to number over a million in Pakistan, play a significant role in the informal economy.
However, they often operate without proper regulation or licences, leaving their future
uncertain. They are vulnerable to unpredictable "anti-encroachment drives'' conducted by city
governments, which disproportionately affect the poor. Street vendors also face extortion,

14
evictions, and abuse from powerful entities within the market and government systems. They
are compelled to pay illegal rent to sustain their businesses. Political patronage further
exacerbates corruption in this realm. Notably, the I-10 vendors affected by the destruction were
regularised and licensed under the city government's 'Ehsas Meherbaan initiative. (Seirut
Javed, 2022)

Conclusion:
Street vending should not be confused with formalised markets and describes the different ways
in which vendors operate, including stationary and mobile stalls. It then discusses the
challenges faced by street vendors, including the lack of legal recognition and clear regulatory
frameworks, social stigma and discrimination, inadequate infrastructure and basic services,
insecurity and harassment, limited access to finance and resources, and vulnerability to
economic shocks. Women play a crucial role in street vending globally, with studies showing
that they represent a significant proportion of street vendors, particularly in the Global South.
The type of products sold by women vendors, particularly in the food sector, is closely linked
to cultural norms and gender roles. The review also highlights that women often enter street
vending to balance their reproductive and productive labour, but they face challenges in
accessing more profitable vending spaces.

Street vending in Pakistan emphasises the importance of street vending in a country with
widespread joblessness and estimates that it has the potential to create 20 million jobs. The
review argues that street vendors are often overlooked and face challenges despite their
significant contribution to the economy. It mentions the bias against street vendors shown by
the privileged class and highlights the challenges faced by street vendors, such as low earnings,
raids, public backlash, harassment, and eviction threats. The initiatives are taken by the
government of Pakistan, such as the Ehsaas Street Hawkers' Initiative, which aims to protect
the rights of street vendors. It also mentions the legislative bill proposed in 2020 that would
require vendors to obtain licences and prohibits child labour. The review concludes by
emphasising the need for inclusive urban planning and the implementation of policies to ensure
the rights and laws about the street economy are respected.

15
 Chapter 03: Methodology of the Research

Introduction:
This section provides an overview of the research methodology employed in the study. It
includes a discussion of the research approach, design, and objectives. The research approach
refers to the overall strategy used to conduct the study, such as qualitative, quantitative, or
mixed methods. The research design outlines the overall plan for data collection and analysis.
The research objectives specify the goals and purposes of the study.

Type of the Study:

This study is primarily exploratory in nature, aiming to gain a comprehensive understanding of
the challenges faced by street vendors in running their businesses. By employing quantitative
methods, it seeks to explore the complexities of the street vending sector and examine the
relationship between challenges and socio-economic well-being.

Case Study Areas:

The case study area selected for this research is Karachi. These cities were chosen based on
their diverse socio-economic characteristics and significant street vending activity in Karachi.
Case study area offers unique insights into the challenges faced by street vendors and allows
for a comprehensive analysis of the broader context.

Sample Size:
To ensure an adequate representation of street vendors in the study, a minimum sample size of
50 respondents was determined. This sample size was based on statistical considerations,
feasibility, and the scope of the research. Efforts were made to include street vendors from
different sectors, geographic locations, and socio-economic backgrounds to capture a diverse
range of experiences and challenges.

Sampling:
A stratified random sampling technique was employed to select the participants for this study.
The target population was divided into strata based on geographic areas and types of street
vending activities. From each stratum, a proportionate number of street vendors were randomly

16
selected to be included in the sample. This approach ensured that the sample represented the
diversity of street vendors in terms of location and business type.

Tools of Data Collection:

The primary data collection tools used in this study were structured interviews and a structured
questionnaire. The structured interviews allowed for a systematic and standardised approach
in gathering information from street vendors. The interview questions were designed in
advance and followed a predetermined format, ensuring consistency across participants. The
structured questionnaire was administered to a larger sample of street vendors, collecting
quantitative data on various aspects of their businesses and socio-economic well-being. Both
the interview and questionnaire instruments were pre-tested and refined to ensure clarity,
reliability, and alignment with the research objectives.

Pre-testing:
Before conducting the actual interviews and administering the questionnaire, a pre-testing
phase was conducted. This involved piloting the interview and questionnaire instruments with
a small group of street vendors who were not part of the final sample. The purpose of pre-
testing was to evaluate the clarity, comprehensibility, and effectiveness of the questions.
Feedback from the participants was collected to identify any potential issues or areas of
improvement in the instruments. Based on the feedback received, necessary modifications and
adjustments were made to enhance the reliability and validity of the data collection tools.

Chapter 4: Interpretation and Analysis of data

Findings:
As we mentioned above, the objective of our study is to understand the socio-economic
challenges of street vendors. To understand these we discover following findings:

17
Graph 1.1: shows movability of carts

Graph 1.2: shows type of carts

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Graph 1.3: shows challenges in obtaining a licence or permit to operate as a street vendor

Graph 1.4: shows challenges in obtaining a licence or permit to operate as a street vendor

19
Graph 1.5: shows experiences of harassment or unfair treatment by illegal authorities while conducting your street vending
activities

Graph 1.6: Shows experiences of harassment or unfair treatment by legal authorities while conducting your street vending
activities?

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Graph 1.7: shows what percentage of your daily earnings do you spend on renting or leasing your vending space

Graph 1.8: shows challenges in accessing credit or loans for street vending business

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Graph 1.9: shows any instances of theft or robbery while operating as a street vendor

Graph 1.10: shows level of support and recognition from the local community towards street vendors

22
Graph 1.11: shows price fluctuations or instability in the cost of the goods you sell

Graph 1. 12: shows government programs or initiatives specifically aimed at supporting street vendors

23
Graph 1.13: shows social stigma or discrimination faced as a street vendor

Correlation coefficient/ chi square:

1. Legal authorities treatment towards movable and immovable cart:

24
 2. Illegal authorities’ treatment towards movable and immovable cart:

3. Robbery incidents among movable and immovable cart:

Analysis:
We have observed that immovable carts are increasingly becoming targets of robbery and
harassment, both by illegal and legal authorities. This poses a significant impact on the

25
business operations of street vendors. Robberies and harassment not only result in financial
losses but also create an atmosphere of fear and insecurity. Street vendors may experience
damage to their carts, loss of merchandise, and disruption of their daily activities. These
incidents can deter vendors from operating their businesses effectively and may even force
some to cease their operations altogether.

The issues of encroachment and illegal taxation (bhatta) faced by street vendors operating
from permanent stalls also have detrimental effects. When their stalls block road traffic or
occupy unauthorized spaces, it can lead to conflicts with local authorities and impact the
smooth flow of vehicles and pedestrians. Such conflicts may result in fines, confiscation of
goods, or even the removal of their stalls. These disruptions can lead to a loss of customers
and business opportunities, as well as a decline in the vendors' reputation within the
community.

Movable carts, on the other hand, face a different set of challenges. While they may be less
targeted by legal authorities due to their mobility, they are often subjected to harassment by
illegal authorities when they move into specific areas. The demand for illegal taxes (bhatta)
can significantly impact their profitability and ability to sustain their businesses. Non-
compliance with these demands may lead to restricted trading activities or even the
destruction of their carts, resulting in immediate financial losses and a setback to their
livelihoods.

The lack of legal permits and documentation for carts among a substantial number of vendors
has significant implications for their businesses. Without proper legalization, vendors may
face constant fear of fines, confiscation, or eviction from their operating spaces. This
uncertainty and vulnerability can hinder their ability to plan for the future, invest in their
businesses, and establish long-term customer relationships. Additionally, the absence of legal
permits may also limit their access to certain resources, services, and opportunities that could
otherwise support their business growth and sustainability.

Discrimination faced by street vendors in public places or tourist spots can have severe
consequences for their businesses. Being forced to move their carts from prime locations can
result in a loss of visibility, foot traffic, and potential customers. This discrimination not only
affects their immediate sales but can also harm their overall reputation and market presence.
The perception that street vendors are detrimental to an area may lead to a negative image,
further hindering their chances of success and expansion.

The limited access to banking and loan facilities due to factors such as a lack of collateral,
high interest rates, and limited financial literacy has profound impacts on the growth and
development of street vendors' businesses. Without access to formal financial services,
vendors may struggle to secure capital for expanding their operations, purchasing inventory,
or investing in equipment and infrastructure. This limitation can hinder their ability to seize
growth opportunities, diversify their product offerings, or adapt to market demands.

26
 Chapter 05: Conclusion

Limitations of the Research:

Sampling Bias: The research relied on a convenience sampling method, which may
introduce a sampling bias and limit the generalizability of the findings to the larger
population of street vendors. Future research should consider using a more representative
sampling method to ensure a broader and more diverse sample.

Limited Scope: The study focused on a specific geographical area or a particular group of
street vendors, which may not capture the full range of challenges faced by street vendors
across different regions or contexts. Future research could consider expanding the scope to
include a more diverse range of street vendors to provide a comprehensive understanding of
the challenges they encounter.

Self-reporting Bias: The data collected in this research relied on self-reporting by street
vendors, which may be subject to recall bias or social desirability bias. Future research could
employ additional methods, such as observation or interviews with other stakeholders, to
complement the self-reported data and enhance the validity of the findings.

Recommendations:
1. Policy Reform: Governments should review and reform existing policies and
regulations related to street vending, aiming to create a supportive environment that
enables street vendors to operate their businesses legally and sustainably. This
includes streamlining the permit and licensing processes, reducing bureaucracy, and
addressing the challenges associated with documentation and legal compliance.

2. Infrastructure Development: Authorities should invest in the development of

appropriate infrastructure for street vendors, such as designated vending zones or
markets, equipped with basic amenities like water supply, sanitation facilities, and
waste management systems. This would create a conducive environment for vendors
to conduct their businesses and improve their overall productivity.

3. Financial Inclusion: Efforts should be made to enhance financial inclusion for street
vendors by providing access to banking services, microcredit facilities, and financial
literacy programs. This would enable vendors to access capital, manage their finances
more effectively, and expand their businesses.

4. Awareness and Sensitization: Public awareness campaigns should be conducted to

educate the general public about the contributions of street vendors to the local
economy and dispel misconceptions or stereotypes associated with their occupation.

27
 This would help reduce discrimination and promote a more inclusive and supportive
attitude towards street vendors.

5. Skill Development and Capacity Building: Training programs and skill

development initiatives should be implemented to enhance the entrepreneurial and
business management skills of street vendors. This would enable them to adapt to
changing market dynamics, improve the quality of their products or services, and
explore new avenues for growth and innovation.

6. Stakeholder Collaboration: Collaboration among various stakeholders, including

government agencies, local authorities, community organizations, and street vendor
associations, is essential for effective policy implementation, addressing challenges,
and creating an enabling environment for street vendors. Regular dialogue,
consultations, and partnerships can foster a sense of ownership, shared responsibility,
and collective action towards supporting the needs and aspirations of street vendors.

Bibliography:
● The Guardian. “Mohammed Bouazizi: the dutiful son whose death changed Tunisia's
fate”. (2010)
● Kristina Graaff and Noa Ha. “Street Vending in the Neoliberal City A Global
Perspective on the Practices and Policies of a Marginalised Economy” (2015)
● Premium Times. “Apapa Gridlock: Police, others begin ‘Operation Restore Sanity”.
(2018)
● Chalida Ekvitthayavechnukul, Patrick Quinn. “Bangkok closes public spaces as virus
surges in Thailand”. (2021)
● Wole Olaleye and Ozias Tungwarara. “An analysis of the demolitions in Zimbabwe”.
ActionAid International-Southern Africa Partnership Programme. (2017)
● Ray Bromley. “Street Vending and Public Policy: A Global Review”. International
Journal of Sociology and Social Policy, 20(1/2):1-28. (2000)
● IBISworld. “Street Vendors in the US - Market Size 2004–2029”, (2023)
● Fadia GamieldienI; Lana van NiekerkII. “Street vending in South Africa: An
entrepreneurial occupation”. South African Journal of Occupational Therapy. (2017)
● Architect Tikam Singh. “Importance Of Street Vendors In India”. IJARIIE-ISSN(O)-
2395-4396, Vol-8 Issue-5, (2022)
● Seirut Javed, “Pakistani Street Vendors: Pillars of the Economy”, (2022)

Questionnaire:

1. Name
2. Age
3. Is your stall
a. Rented

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 b. Owned
4. Does your Cart?
a. Movable
b. Immovable
5. Type of stall?
a. Clothes
b. Food
c. Utensils
d. Jewellery
e. Other…
6. How long have you been working as a street vendor?
a. Less than 1 year
b. 1-3 years
c. 3-5 years
d. More than 5 years
7. Have you faced any challenges in obtaining a license or permit to operate as a
street vendor?
a. Yes
b. No
8. What percentage of your daily earnings do you spend on renting or leasing your
vending space?
a. Less than 10%
b. 10-25%
c. 25-50%
d. More than 50%
e. don't spend
9. How often do you experience harassment or unfair treatment by legal authorities
while conducting your street vending activities?
a. Frequently
b. Occasionally
c. Rarely
d. Never
e. Other…
10. What are the reasons for harassment or unfair treatment by legal authorities?
a. Not giving illegal tax aka Bhatta
b. Encroachment
11. How often do you experience harassment or unfair treatment by illegal authorities
while conducting your street vending activities?
a. Frequently
b. Occasionally
c. Rarely
d. Never
e. Other…
12. What are the reasons for harassment or unfair treatment by illegal authorities?

29
 a. Not giving illegal tax aka Bhatta
b. Encroachment
13. What are the major challenges you face in accessing credit or loans for your street
vending business?
a. Lack of collateral
b. High interest rates
c. Limited financial literacy
d. Other…
14. Have you faced any instances of theft or robbery while operating as a street
vendor?
a. Yes
b. No
15. How do you perceive the level of support and recognition from the local
community towards street vendors?
a. Very supportive
b. Somewhat supportive
c. Neutral
d. Not supportive
16. How often do you experience price fluctuations or instability in the cost of the
goods you sell?
a. Frequently
b. Occasionally
c. Rarely
d. Never
17. Are there any government programs or initiatives specifically aimed at supporting
street vendors in your area?
a. Yes
b. No
18. How satisfied are you with the level of government support and assistance
provided to street vendors?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied
19. Have you ever faced social stigma or discrimination due to your occupation as a
street vendor?
a. Frequently
b. Occasionally
c. Rarely
d. Never
20. Are you a member of any street vendor association or organization?
21. Yes
22. No

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