how do street vendors contribute to the economyhow do street vendors contribute to the economy

In this context, the present study examines whether culture impacts street vending directly or indirectly through consumption and resistance. This study followed the updated procedure in Nitzl et al. In terms of lack of microfinance, the most significant factor is that vendors have no access to formal credit facilities. Street vendors, market traders and market porters provide necessary goods and services, especially to those who must buy life's necessities in very small quantities at affordable prices. doi: 10.21511/ppm.14(3-2).2016.11, Nitzl, C., Roldan, J. L., and Cepeda, G. (2016). If we add the small family farms, the informal sector represents a huge part of the entire economy in most developing countries. In this connection, we should differentiate between licensed and unlicensed street vendors. In order to test the conceptual research model using PLS-SEM, we constructed measurable (observed) variables that reflect constructs drawn from the literature. This data can be found here: https://doi.org/10.17632/dh3cv5p7rv.1. These findings are the main contributions of this study, and they will enrich the cultural approach. Mark. Front. Thus, there are no collinearity issues in the structural model. doi: 10.1080/02508281.2017.1370568, Trupp, A. "It's part of the continuum that makes L.A. an interesting place to live. Psychol. Accordingly, we can safely generalize the conclusions derived from this study, taking into consideration the limitations raised in section 5.4. doi: 10.1017/S0305741016000278, Henseler, J., Ringle, C. M., and Sarstedt, M. (2014). The Segregation of John Muir High School, Hollywood Priest: The Story of Fr. Table 3 shows that the R2 values for street vending (0.267), low-income consumption (0.321), and resistance (0.361) can be considered moderate; that is, more than 25% of the amount of variance in all the endogenous constructs is explained by the corresponding exogenous constructs. 30, 22932312. doi: 10.1177/001316447003000308, Ladan, U., and Williams, C. C. (2019). Enrolling a goddess for Delhi's street vendors: the micro-politics of policy implementation shaping urban (in)formality. Third, SEM takes into consideration measurement error in the observed variables involved in a corresponding model (Fornell and Larcker, 1981). It is worth noting that there are often too many vegetable sellers competing with each other in overcrowded areas. Many generate revenue for cities through payments for licenses and permits, fees and fines, and certain kinds of taxes. Spaces of Contention: tension around street vendors' struggle for livelihoods and spatial justice in Lilongwe, Malawi. The study chose Baghdad, Iraq as a sample to analyze the relationship between culture and street vending for multiple reasons. Int. 14, 549555. Figure 2. 12:596071. doi: 10.3389/fpsyg.2021.596071, Wardrop, J. For more on the size and significance of the street vending . All the indicator variables were measured using a seven-point Likert-type scale, shown in Table 1 (1 strongly disagree, 2 disagree, 3 somewhat disagree, 4 neither agree nor disagree, 5 somewhat agree, 6 agree, and 7 strongly agree). We modified the questionnaire in light of these findings, and the results are shown in Table 1 in an English version. 63, 395412. A total number of 384 participants will be required to gain a 95% confidence interval for a population that exceeds one million persons with a marginal error of 5%. First, the societal culture, represented by urban culture and patterns of consumption, creates a real demand for the goods and services offered in public spaces, and this encourages sellers to continue trading on the public streets. To examine internal consistency reliability, we used Cronbach's alpha () and composite reliability (C) for all the constructs. The first is assistance from family. Dan Walters brings his passion for government transparency to issues affecting Californians. J. Soc. The model is tested empirically, using a survey of the general public's attitudes toward street vending and corresponding factors in the context of Baghdad. This is a case of full mediation, since there is an indirect effect only. Rule Law 5, 7495. The effect of poverty on street vending through sequential mediations of education, immigration, and unemployment. 11, 110. Finally, SEM gives a complete picture of the entire model, regardless of the complexity of the relationships among the constructs and observed variables. Therefore, governments should set up specialized organizations to provide financial support to microbusinesses. how they perceive their precarious status. Unlicensed street vendors occupy public spaces and traditional markets, creating problems for residents, pedestrians, formal retailers, and public authorities. doi: 10.5539/ass.v7n12p163, Cuvi, J. Street vending is a core part of this culture. H6. Thus, it is important to apply the model to data drawn from other cities and countries with different political circumstances. Political and social stability has been severely damaged, and the state has mainly allocated its financial resources to fighting terrorism and resolving sectarian tensions. Policy 37, 186202. doi: 10.1355/sj30-3f, Voiculescu, C. (2014). Here, we argue that resistance as a mediator is able to explain the relationship between culture (or low-income consumption) and street vending, given that urban culture (or low-income consumption) may not affect street vending directly. Generally, the vendors themselves try to understand changes in customers' needs and to select appropriate public places to reach certain groups of customers, such as tourists (Steel, 2012a). Since most unemployed and poor people have no access to the financial system to obtain loans, they become resistant. Our research pursues two aims. Immigration status, English-only instructions and the need for formal business documentation can discourage vendors from applying. J. Sociol. Hence, we propose the following hypothesis: H4. Fourth, the model is limited to examination of the impact of culture on street vending. First, street vending is a crucial part of the vibrancy of cities like Baghdad, Iraq's capital. Operation murambatsvina and the politics of street vendors in Zimbabwe. J. Res. In addition to that, it is obvious that a more static and . Their approach is appropriate because the problem affects the social and economic daily life of cities in two opposing ways. 26, 8795. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). Hence, street vendors have strived and are striving to prepare quality food which will entice demanding taste buds at a lower cost. 31, 224. doi: 10.1016/j.iedeen.2020.03.001, Forkuor, J. Depending on their social networks, street vendors occupy certain traditional markets or sidewalks (Tengeh and Lapah, 2013); that is, they belong to specific tribes or cities, which gives them a degree of power against residents and authorities. Res. To test the predictive relevance of the endogenous variables, we used a blindfolding procedure. Ann. Res. Husain et al. The number of street vendors has increased sharply, and the public authorities have been unable to formalize their status. Third, it develops measurement variables for the constructs in question, some of which are used for the first time, and confirms that they are reliable and valid. doi: 10.1108/cpoib-05-2015-0017, Batrau, Q., and Bonnet, F. (2016). Resistance mediates the effect of a lack of microfinance on street vending. Resistance is formed by three important observed indicators in sequence, as the standardized factor loadings in Table 1 indicate. Geoforum 84, 7787. Is Informal Sector Entrepreneurship necessity- or opportunity-driven? Geneva: International Labour Office, Employment Policy Department. 18, 382388. On MKURABITA and the legal empowerment of Tanzania's street vendors. Even though their business is somewhat threatened by the formal food retail industry, those sellers continue to provide food to those consumers. Structural equation models with unobservable variables and measurement error: algebra and statistics. Hair, J. F., Risher, J. J., Sarstedt, M., and Ringle, C. M. (2019). The new identities of street vendors in Santiago, Chile. doi: 10.1177/0891241610387926, Esubalew, A. In May 2023, Frontiers adopted a new reporting platform to be Counter 5 compliant, in line with industry standards. Memorial Day Massacre: Workers Die, Film Buried, Henry T. Segerstrom: Imagining the Future, Fight the Power: How Hip Hop Changed the World, Bridging the Divide: Tom Bradley and the Politics of Race, The First Attack Ads: Hollywood vs. Upton Sinclair, Can We All Get Along? On the other hand, in many countries, the informal economy, which consists mainly of street vending, plays a crucial role in income generation, employment creation, and production (Recchi, 2020). Days after Chinese Premier Li Kequiang praised street vendors for generating jobs, Beijing officials forced these vendors to disperse. Syst. History 27, 273287. Working life of street vendors in Mumbai. (1998). doi: 10.5901/mjss.2013.v4n4p181. Just $5 a month. 8 Ways How Street Vendor Economy may Help in the Economic Crisis India street vendor economy provides earning opportunities to lower-income people. Thus, it seems that culture does not impact street vending. The current paper uses the PLS-SEM technique for four reasons. On the one hand, it has negative impacts in terms of traffic, competition with the modern retail industry, and violence. 12 "Informal employment is the norm in the global South" (Chen . Idiosyncratic job-design practices for cultivating personal knowledge management among knowledge workers in organizations. Sci. doi: 10.2307/1389525, Musoni, F. (2010). The former finding suggests that H1 is not supported. This paper synthesizes recent research and evidence on urban policies and local government practices as they relate to street vending, one of the most visible occupations in the informal economy. Latan, H., and Noonan, R. Emot. According to Njaya (2014) Zimbabwe has no policy framework that Evaluating theorizations of informal sector entrepreneurship: some lessons from Zamfara, Nigeria. Assoc. Section Discussion and Conclusion discusses the theoretical and managerial implications of the findings, and then considers the limitations of the study and future research directions. doi: 10.1016/j.meatsci.2010.04.026, Nani, G. V. (2016). Whose Paradise? The indirect effect of urban culture on street vending via low-income consumption is also not significant ( = 0.036, t = 1.183) as shown in Table 6(C), and this indicates that H2 is not supported. Section Results tests the model and hypotheses and reports the results. Microfinance 24, 4054. Educ. A. Table 3 gives the Q2 values for our endogenous latent constructs. Rev. These cultural factors give sellers two sets of incentives to continue trading informally on sidewalks. Street vendors contribute to the economy in several ways. Future studies should, therefore, test the model using data collected at different intervals. The psychology of resistance to change: the antidotal effect of organizational justice, support and leader-member exchange. Int. In short, urban culture (in the form of consumption patterns) impacts the pervasiveness of street vending if we take into consideration the mediator of resistance. E-rickshaws on urban streets: sustainability issues and policies. According to SEDA (2008) Durban, South Africa is credited for being one of the first to cities to adopt street vendors policy. The study adopted a sampling method introduced by Krejcie and Morgan (1970) in order to determine the minimum size of the sample required for a given population. Imitation or innovation: To what extent do exploitative learning and exploratory learning foster imitation strategy and innovation strategy for sustained competitive advantage??. Since the occupation of Iraq by the US-led alliance in 2003, the state and its major institutions have collapsed. Yet, hawkers - informal traders - are entrepreneurs who undeniably contribute to economic growth. 4, 109128. How do job insecurity and perceived well-being affect expatriate employees' willingness to share or hide knowledge? California simplified the recipe for economic success for these entrepreneurs, and deserves credit for allowing them to get cooking. J. Sociol. (A) Model with total effect. L.A. Street Vendors Contribute Half A Billion Dollars To Local Economy. This field is for validation purposes and should be left unchanged. street vendors are classified into eight tax code categories. City Commun. Econ. The measurement items for the constructs in this study, displayed in Table 1, were translated into Arabic, a language that the majority of Iraqis speak. Although the path coefficients of the relationship between constructs and the predictive relevance of the entire model are statistically significant, the results of this study are subject to a number of limitations. For the last 12 years, I've had the privilege of working with some of the most talented and passionate community-based leaders in Los Angeles. doi: 10.1111/j.1468-2427.2012.01153.x, Stone, M. (1974). Res. At that time, China had also created 5.64 million jobs. First, street vendors develop strategies to enable them to stay on the streets; second, they depend on their social networks; and third, they return to their sites following the demolition of their stalls. This mindset informs the two recommendations found at the end of the Economic Roundtable report that suggests ending all punitive policies towards street vendors and creating a permit system to legitimize vending businesses. 11, 244257. 54, 301326. Research on the management of urban unlicensed mobile street vendorstaking public satisfied degree as value orientation. Informal street vending: a comparative literature review. 41, 120125. Third, PLS-SEM is suitable for developing a theory (Hair et al., 2017, 2019). Specifically, meat consumption is affected by religion, history, and urban culture (Nam et al., 2010). The model posits that urban culture positively impacts street vending through low-income consumption and resistance and the mediating effect of resistance on the relationship between a lack of microfinance and street vending. Thus, we hypothesize: H1. Do street vendors pay taxes? the dynamics and socioeconomic conditions of street vendors in the city. With regard to monthly household income, 41% earned less than $400, 37% earned $400999, 12% earned $1,0001,499, and 10% earned more than $1,500. The effect of culture and organisational culture on administrative corruption. Bus. Perspect. doi: 10.1016/j.scs.2018.04.037, Martinez, T. A. For Burns and the millions who frequent street vendors throughout the city, the answer is a simple one. Cham: Springer. Asian Soc. Assessment of the socioeconomic aspects of street vendors in Dhaka city: evidence from Bangladesh. Entrepreneurship 24, 118. This study contributes to the extant literature as it proposed and tested a novel and comprehensive model to analyze the relationship between urban culture and street vending, simultaneously examining the effects of culture, consumption, resistance, and microfinance on street vending. Get a round-up of his columns. Tamilarai, S., and Angayarkanni, R. (2016). The Informal Economy and Decent Work: A Policy Resource Guide Supporting Transitions to Formality. An indicator of the scale of street vending is that informal employment accounts for 42% of total nonagricultural employment in Thailand (2010), 50% in Argentina (2009), 61% in Ecuador (2009), and 70% in Zambia (2008) as estimated by the ILO (ILO, 2013). Policy 41, 930948. doi: 10.1016/j.scs.2020.102316, Al-Jundi, S. A., Shuhaiber, A., and Al-Emara, S. S. (2019). Tackling Vulnerability in the Informal Economy. All standardized factor loadings were higher than the cut-off value of 0.707. Hague J. Psychol. (2015) found that personal savings constitute the most considerable source of financing for peddlers. 62, 113. Managed informality: regulating street vendors in Bangkok. Governmental organizations can reduce the level of resistance by introducing justice practices among peddlers by offering sort of support to them such as building infrastructure in order to formalize their business (Rehman et al., 2021). Anthropol. Prior research on this topic is limited and inconclusive. Sci. Street vendors (hawkers or peddlers), as a main element in the informal economy, have existed for decades (Nani, 2016). Street vending is highly segmented, with different interactions with the formal economy, diverse types of sales and activities, uneven prots, and diverse Finally, the results can be used to rank the factors that drive the pervasiveness of street vending in order of importance, with managerial implications for dealing fairly with this problematic issue in the cities of developing countries. Nevertheless, we find that urban culture has a significant and positive impact on street vending via resistance (H3). Third, the pervasiveness of street vending has increased dramatically over the last 15 years in the wake of political changes. Int. They enter the informal economy for cultural reasons, such as continuing a traditional family activity, and for social or lifestyle reasons (Williams and Gurtoo, 2012). Some vendors love the flexible spaces and movement; they are voyagers who carry their emotions and dreams with them as they explore new landscapes (Voiculescu, 2014). Each week, Dan Walters brings his decades of coverage to hold Californias elected leaders accountable. Struggles with changing politics: street vendor livelihoods in contemporary China. doi: 10.1177/2158244017691563, Fornell, C., and Larcker, D. (1981). The unemployment and poverty immediately pushed them to return. Sustain. doi: 10.1108/S0190-128120170000037009, Keywords: street vending, urban culture, consumption, resistance, microfinance, mediation, PLS-SEM, Citation: Al-Jundi SA, Al-Janabi HA, Salam MA, Bajaba S and Ullah S (2022) The Impact of Urban Culture on Street Vending: A Path Model Analysis of the General Public's Perspective. Policy 41, 805825. Urban culture positively impacts street vending. Data Syst. To establish discriminant validity, the heterotraitmonotrait ratio (HTMT) was used. The Leadership, Advancement, Membership and Special Events teams are here to help. This translates into added sales and jobs for local stores, as well as other suppliers who help street vendors keep their carts in operation. As a result, the unemployment rate has increased, especially among young people, and one-fifth of the population has fallen below the poverty line, even though the country is ranked fifth in the world for oil exports. (2015). Focuses on street vendors as an occupational group ad includes arguments for and against their existence, the impact of their geographical and economic location, and role of the government.. However, there remains a need to understand public opinions on street vending before reviewing public policies on this activity (Chai et al., 2011). J. Street vendors earn a low level of income and must compete with formal sellers (Agadjanian, 2002). doi: 10.1016/j.cities.2017.06.007, Chai, X., Qin, Z., Pan, K., Deng, X., and Zhou, Y. The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. A new criterion for assessing discriminant validity in variance-based structural equation modeling. A., and Raghurama, A. Res. 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. Stud. Commun. The onset of the spring season heralds the arrival of fragrant flowers in bloom and all the critters that enjoy them, including the Easter bunny and families who anticipate his arrival with egg hunts, parades and questionable fashion choices. Navigating emotional landscapes: Roma street vendors in Scotland: Every story is a travel storyA spatial practice (De Certeau). Often, street vendors conduct their informal businesses on the sidewalks, which are meant to be used by pedestrians. People who suffer from poverty and unemployment develop their own subculture to resist oppression (T. A. Martinez, 1997). Street vendors often face official harassment. doi: 10.5430/bmr.v3n1p41, Yatmo, Y. Manag. The results also indicated that most of the street vendors are uneducated, but that some have secondary school certificates, a diploma, or even a bachelor's degree, because unemployment has spread among young people and graduates. Eur. In contrast to the blue-ocean strategy, which creates significant economic value with innovative or disruptive solutions, street vendors use existing business models while cutting operation costs. In short, urban culture has a significant and positive impact on street vending through sequential mediators and is fully mediated. Surprisingly, the results of this study indicate that urban culture does not have a significant direct effect on street vending (H1). As the study puts it, this is important because of what it adds, economically, to the city: Of course, the big issue is that all of the transactions leading to this exchange of money are, according to the rule of the law, illegal. The empirical results for all the direct paths in Table 5, Figure 2B, are significant, with the exception of the direct effect of urban culture on street vending and low-income consumption on street vending. Eur. You can find our submission guidelines here. A practical guide to factorial validity using PLS-Graph: tutorial and annotated example. The results confirmed that most of the street vendors are Iraqis and that public officials mostly ignore them, although the authorities sometimes evict them from public streets and traditional markets. Second, with the rise of internet shopping and online food delivery services, demand for street snacks has declined. Front. Finally, the study offers three novel and important findings: (1) Urban culture positively influences street vending via resistance; (2) Urban culture impacts street vending via serial mediation of low-income consumption and resistance; (3) Microfinance positively impacts street vending directly or through resistance. We began by inviting students, administrative staff, and faculty members at Middle Technical University, Baghdad to take part. The city of Manila also targeted structures. Determining sample size for research activities. Table 3. Polit. Likewise, commercial banks should be encouraged to lend to very small businesses, and the loans should be based on knowledge of the market rather than on technical evaluation of the risks; in this context, an intuitive approach to lending will lead to better results than quantitative methods (Mala, 2013). Meas. With some initiatives from the government, it can be a win-win situation. The rst is to detail the variety and segmentation of street vending in one city. This indicates that resistance fully mediates the relationship between urban culture and street vending, and H3 is therefore supported. All authors listed have made a substantial, direct, and intellectual contribution to the work and approved it for publication. Second, because we collected the raw data via the Internet and social media, we cannot guarantee the full engagement of the participants. The review of the literature served to identify five items that reflect each construct. The mediating effect of entrepreneurs' competency on the relationship between Bank finance and performance of micro, small, and medium enterprises (MSMEs). Soc. Low-income consumption and resistance sequentially mediate the effect of urban culture on street vending. The early days of the movies in Los Angeles inadvertently allowed visitors to experience the largest collection of animals in the western United States. Bus. Ethnogr. doi: 10.1007/s11365-012-0227-2, Williams, C. C., and Youssef, Y. doi: 10.1080/03057070.2010.485786, Nam, K.-C., Jo, C., and Lee, M. (2010). doi: 10.5901/mjss.2013.v4n2p109, Tonda, N., and Kepe, T. (2016). However, some people in India also avoid street food stalls in . In terms of education, 25% had not completed secondary schooling, 41% (most of whom were university students) had a secondary school certificate, 20% had a diploma or a bachelor's degree, and 14% (mainly faculty members) were postgraduates. Itinerant vendors, for instance, resist in order to be allowed to remain on the sidewalks and in the markets, taking individual and collective action and sometimes organizing protests (Steel, 2012b). Second, because they cannot find jobs in the formal sector, street vendors have only one way to earn income, namely by working hard on the streets (Onodugo et al., 2016). (2019). ASIA 4, 173190. Space Soc. (2020). Economic empathy in family entrepreneurship: Mexican-origin street vendor children and their parents. J. Sociol. Some researchers have suggested a direct effect of resistance on the pervasiveness of street vending, noting that street vendors, in order to survive, adopt a strategy of resistance, despite restrictive policies (Hanser, 2016; Boonjubun, 2017). 17, 185210. Manag. This study relies on the cultural approach, which argues that street vendors choose their endeavor for cultural reasons rather than on the basis of rational decisions. J. Econ. Informal sellers are among the poorest people in society. There are two solutions, then. They also contribute a whole amount of money into the Los Angeles economy. To test the significance of the path coefficients, we ran bootstrapping of 5,000 iterations (subsamples) at 95% bias-corrected confidence intervals.