Scribd
Upload
16 views4 pages

Informal Sector Impact in Kedamay Weyane

This research proposal investigates the causes and effects of street vending as a form of informal employment in Kedamay Weyane Kebele, Mekelle, Ethiopia. It aims to identify the factors driving individuals into street vending, assess its economic and social impacts, and explore the challenges faced by vendors, ultimately providing policy recommendations for their integration into the formal economy. The study employs a mixed-methods approach, combining quantitative surveys and qualitative interviews to gather comprehensive data.

Uploaded by

gueshberhe97
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
16 views4 pages

Informal Sector Impact in Kedamay Weyane

This research proposal investigates the causes and effects of street vending as a form of informal employment in Kedamay Weyane Kebele, Mekelle, Ethiopia. It aims to identify the factors driving individuals into street vending, assess its economic and social impacts, and explore the challenges faced by vendors, ultimately providing policy recommendations for their integration into the formal economy. The study employs a mixed-methods approach, combining quantitative surveys and qualitative interviews to gather comprehensive data.

Uploaded by

gueshberhe97
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

MEKELLE UNIVERISTY

COLLEGE OF BUSSINESS AND ECONOMICS

DEPARTMENT OF ECONOMICS

FINAL YEAR RESEARCH TITTLE

CAUSE AND EFFECT OF INFORMAL SECTORS:INCASE OF STREET


VENDORS IN MEKELLE(KEDEMAY WEYANE kebelle) ,ETHIOPIA.

NAME:GUESH BERHE

STATUS :EXTENSION STUDENT

PROGRAM:DEGREE

YEAR:2017E.C
Research Proposal
Title: Causes and Effects of the Informal Sector: A Case Study of Street Vendors in Kedamay Weyane
Kebele, Mekelle, Ethiopia

1) Introduction
The informal sector is a crucial part of many developing economies, providing employment and income
for individuals who may lack access to formal job opportunities. In Ethiopia, particularly in urban centers
like Mekelle, street vending is a prominent form of informal employment. Despite its economic
significance, the informal sector faces challenges such as lack of legal recognition, limited access to
financial services, and vulnerability to law enforcement actions.

This study aims to examine the causes that push individuals into street vending and analyze its economic
and social effects. Understanding these dynamics will help policymakers design strategies to integrate
informal sector workers into the formal economy while addressing their challenges.

2) Research Objectives

i. To identify the primary factors driving individuals into street vending in Kedamay Weyane
Kebele.
ii. To assess the economic and social impact of street vending on vendors and the community.
iii. To explore the challenges faced by street vendors in the informal sector.
iv. To provide policy recommendations for improving the livelihoods of street vendors.

3) Research Questions
i. What are the main reasons individuals engage in street vending in Mekelle?
ii. How does street vending contribute to the local economy and livelihoods?
iii. What are the major challenges faced by street vendors?
iv. What policy measures can be taken to address the challenges and enhance the benefits of the
informal sector?

4) Literature Review
The informal sector is a significant contributor to employment in Ethiopia, with street vending being one
of the most visible forms of informal work. Studies indicate that individuals engage in street vending due
to poverty, lack of formal job opportunities, and low entry barriers. However, they face issues such as
police harassment, lack of infrastructure, and unstable incomes.

Previous research on Ethiopia’s informal economy highlights both its economic contributions and the
regulatory challenges it faces. While street vendors provide affordable goods and services, they often
operate in insecure conditions without legal protection. Understanding these dynamics in Mekelle will
contribute to broader discussions on urban informal economies.

5) Methodology
Research Design
This study will employ a mixed-methods approach, combining quantitative surveys with qualitative
interviews to ensure a comprehensive analysis.

Data Collection Methods


Surveys: Structured questionnaires will be administered to 100 street vendors in Kedamay Weyane
Kebele to gather data on their socio-economic background, reasons for engaging in street vending,
income levels, and challenges.

Interviews: In-depth interviews will be conducted with local government officials, business
associations, and community leaders to understand the broader implications of the informal sector.

Observations: Direct field observations will help assess the working conditions of street vendors.

Data Analysis
 Quantitative data (from surveys) will be analyzed using SPSS or Excel, applying descriptive statistics
such as percentages and averages.
 Qualitative data (from interviews) will be analyzed thematically to identify common trends and
perspectives.

6) Significance of the Study


This research will provide insights into the economic and social role of street vending in Mekelle, helping
policymakers and stakeholders address the challenges faced by informal workers. Findings can
contribute to strategies for integrating the informal sector into urban economic

planning.

7) Expected Challenges and Limitations


 Reluctance of vendors to provide information due to fear of government intervention.
 Limited access to official data on the informal economy.
 Time and resource constraints affecting the sample size.

8) References
 International Labour Organization (ILO), 2020 – The Informal Economy in Africa.

 Tadele, G. & Ayele, T., 2018 – Street Vending and Urban Economy in Ethiopia.

 UN-Habitat, 2021 – Urban Informal Economies and Livelihoods in Ethiopia.

 Ethiopian Central Statistics Agency (CSA), 2019 – Employment Trends in


Ethiopia.

 Chen, M. A., 2012 – The Informal Economy: Definitions, Theories, and


Policies.

 Roever, S., 2016 – Informal Trade and the Governance of Public Space.

Conclusion

This study aims to explore the causes and effects of street vending in the informal sector,
with a focus on Kedamay Weyane Kebele in Mekelle, Ethiopia. The research will identify the
factors driving individuals into street vending, assess its economic impact, and highlight the
challenges faced by vendors. The findings will contribute to policymaking by offering insights
into how informal workers can be better supported and integrated into the economy.
Ultimately, the study seeks to balance economic growth with sustainable urban
development, ensuring that the informal sector is recognized as a vital component of the
local economy.

Common questions

Powered by AI

The primary factors driving individuals into street vending in Mekelle are poverty, lack of formal job opportunities, and low entry barriers. These factors force individuals to seek alternative means of income generation, despite the associated challenges of informal sector work .

The study's significance lies in its insights into the socio-economic role of street vending, offering evidence-based recommendations for integrating these vendors into the formal economy. By highlighting challenges and contributions, the research aids policymakers in designing inclusive urban development strategies .

The study employs a mixed-methods approach, combining quantitative surveys with 100 street vendors and qualitative interviews with stakeholders. This approach is significant as it provides both statistical data and in-depth insights, ensuring a comprehensive analysis of the informal sector's causes and effects .

Potential policy measures include legal recognition of street vendors, improved access to financial services, and better infrastructure. These measures aim to integrate street vendors into formal economic planning and protect them from harassment, enhancing their economic contributions and stability .

The study plans to use descriptive statistics from quantitative surveys and thematic analysis from qualitative interviews to address research questions about street vending. This data-driven approach aims to uncover trends and perspectives critical to understanding the informal sector's dynamics .

Previous studies highlight economic contributions and challenges of Ethiopia's informal sector, informing this research by outlining prevalent issues like poverty and lack of formal opportunities. This background aids in contextualizing the dynamics of street vending within Mekelle's urban economy .

Street vendors in Mekelle face major challenges such as police harassment, lack of legal recognition, inadequate infrastructure, and income instability. These challenges result in insecurity and limit their ability to sustain operations, contributing to fears of government intervention and potentially stifling their economic contributions .

Street vending contributes to the local economy of Mekelle by providing employment and affordable goods and services. Economically, it supports livelihoods in the absence of formal jobs. Socially, it offers accessibility to essential items, fostering community interactions despite operating in insecure conditions .

The research objectives, which include identifying drivers of street vending and assessing impacts, align with the mixed-methods approach by combining quantitative data for broad patterns with qualitative insights for depth. This alignment ensures that both macro-level trends and micro-level experiences are captured .

Expected challenges include vendors' reluctance to provide information due to fear of government intervention, limited access to official data, and time/resource constraints. These challenges could affect the research's accuracy and the sample's representativeness, possibly limiting the generalizability of findings .

You might also like