Note

2. 4/28/2024 2
MARCH, 2024
CHIRO, ETHIOPIA
RIFT VALLEY UNIVERSITY
CHIRO CAMPUS
THESIS PRESENTATION FOR MASTER OF BUSINESS
ADMINISTRATION (MBA) PROGRAM

3. 4/28/2024 3
CHALLENGES AND OPPORTUNITIES OF STREET VENDING OF
WOMEN (IN CASE OF CHIRO CITY ADMINISTRATION)
BY: TEFERI TESHOME ABABU
ADVISOR: BELESTI W. (Ph.D. Candidate)
MARCH, 2024
CHIRO, ETHIOPIA

4. Contents of presentation
1. Background of the study
2. Statement of the Problem
3. Research Question
4. Objectives of the Study
5. Significance of the study
6. Scope of the study
7. Conceptual framework of the study
8. Research Methodology
9. Results and Discussion
10.Conclusion and Recommendation
4/28/2024
4
Basically my thesis presentation includes the following contents:

5. 1. Background of the study
 Street vending is one of the most critical sources of employment for urban
dwellers. "It is an ancient and important occupation found in almost every country
and major city worldwide.
 Street vending is simply the retail or wholesale trading of goods and services in
streets and other related public axes such as alleyways, avenues, and
boulevards" (Bromley R. , 2000).
 Street vendors are "a sub-group of a full informal sector, which the World
Bank blamed on the "urbanization of people without capital" (Gumisiriza, 2021).
 Some scholars have observed that "street vending is defined by a clear labor
market failure: when high labor supply driven by rapid urbanization and
population growth coexists with low demand for low skilled labor, limited
opportunities for formal employment force job seekers into informal income
generating activities" (Young, 2018).

6. The International Labor Organization indicated that two billion (61 percent) of the
global employed population earn their living in the informal economy. It shows
that informality exists in countries at all levels of socio-economic development
(ILO, 2019).
Street vending is part of the urban informal sector, which is "a major force in
African economies, comprising the majority of gross domestic product (GDP) and
employment" (Mbaye, M. A. and Benjamin, N., 2014).
In some economies in Sub-Saharan Africa (SSA), informal employment accounts
for more than 90 percent of total employment and informal output for as much as
62 percent of official GDP (World Bank , 2019).
Ethiopia has a large number of people participating in the informal sector. The
reason is the high population growth rate and a relatively small formal sector
(WIEGO, 2018).
1. Background of the study

7.  Evidently, it is clear that the informal sector increasingly serves as a safety
net for poor people in developing countries. Some scholars have examined
whether men or women are more likely to work in the informal economy.
 In line with this, Losby and Kingslow (2002) investigated that women are
more likely to work in the informal sector than men because of their
household responsibilities, particularly their responsibilities for the care of
children.
 Also, the majority of women in the informal sector, such as petty trading,
joined the sector as a means of survival.
 They turn to informal business due to the low level of economic support
from their husbands or partners, which forces them to find a means of
supplementing their low income in order to support the family.
1. Background of the study

8. As the International Labor Organization indicated, informal
employment is a greater source of employment for women than for
men in developing countries, which account for 92 percent, which is
substantially higher than the percentage of male workers at 87
percent (ILO, 2019).
Likewise, even if it is difficult to state the exact numbers of women
engaged in the informal sector in Ethiopia, research reports show that
large numbers of women are engaged in the informal sector.
According to reports from the Central Statistics Agency, 61% of
women were engaged in the informal sector.
As the report stated, the alarming rates of rural-urban migration will
increase the involvement of women in informal sectors (CSA, 2011).
1. Background of the study

9. In Chiro City Street, vending is a critical issue for women, which operates on the
informal trade of materials such as cosmetics, food products (raw grain, cake,
etc.), vegetables and fruits, second-hand clothes and shoes, house equipment
used for beautification, household equipment, cigarettes, belts, umbrellas, shoe
soles, soaps, and watches.
Recently, this sector has attracted the attention of the government, non-
governmental bodies, and policymakers. Especially the government is creating
awareness and giving priorities to the informal sectors in order to make them
legally bound, and providing the sectors supports the hope that the expansion of
informal sectors of businesses into formal ones, especially to the micro and small
business level, will have a great economic contribution.
However, these informal businesses get fixed and fail to expand because of some
challenges. This is the rationale behind this study is to assess the challenges and
opportunities for women operating in street vending in the Chiro City
administration.
1. Background of the study

10. The significance of the informal sector in low income developing
countries, particularly in sub-Saharan African economies, has been a
priority issue recently (Ahmadou, 2014).
According to a study conducted in Tanzania, the street vending
business has significant importance to the livelihood of many less
educated people.
It acts as a substitute for employment for those who lack such
opportunities in the formal sector due to a low level of education or a
lack of sufficient capital (Nasibu, 2015).
2. Statement of the Problem
Women dominate the informal sector in most Sub-Saharan African
countries, where they are found in the fields of trading, and food
processing (ILO, 2019).

11. In Ethiopia, the economic dilemmas facing the country have had various
effects on society at large. Given this situation, the high rates of urbanization
and unemployment have resulted in more and more people, mainly women,
being engaged in informal business.
Since urban poverty and unemployment in many urban centers of Ethiopia
have been growing, many people, particularly the urban poor and other
impoverished groups of society, have turned to various income generating
activities in the informal sector, like street vending.
While, in Ethiopia, street vending has contributed to livelihoods and
employment for women’s in particular, it has received little attention; much
has been focused on its negative impacts, like the use of public space,
congestion, health and safety risks, tax evasion, and the sale of shoddy
merchandise.
2. Statement of the Problem

12. According to the Chiro City Trade and Industry Office, street vending is
one of the most rapidly growing sectors. Following this, the central and
local governments recently launched a campaign to make street
vendors legal and effective.
This initiation was motivated by the need to increase their economic
contribution, create a conducive environment, promote better health,
and increase security for the town population.
However, it has been very challenging for the local government (city
administrator) to achieve this objective because the formalization of
street vending is not that easy due to a lack of infrastructure.
Street vending is an informal sector that is a researchable area, but as
far as the literature and the researchers know, there are limited related
studies conducted in the study area, particularly in Ethiopia as a whole.
2. Statement of the Problem

13.  Some of the previous studies were conducted in some study areas in Ethiopia on
informal business and women's livelihoods in Addis Ababa (Getahun, 2015)
Jimma (Tamerat, M and Nega, J, 2015), Mekele (Fillmon, 2011) and Gonder (
(Eshetu, 2019).
 Even if previous studies are investigating the roles of street vending in enhancing
women's livelihoods, they do not clearly address the factors that drive women to
engage in street vending and the challenges and opportunities women’s faces by
involving in informal business.
 To the best of the researcher knowledge, no study has been conducted in Chiro
City regarding the challenges and opportunities facing women street vendors. As
a result, investigating the factors that drive women into street vending and the
challenges and opportunities they face is quite fundamental.
 Therefore, the focus of this study, fill this gap by analyzing the challenges and
opportunities of women's street vending in Chiro City.
2. Statement of the Problem

14. 3. Research Question
1. What are the main reasons that force Women to be street
vendor?
2. What are the challenges that face Women street venders
while operating their business?
3. What are the opportunities that street vending has to
Women street vendors in study?

15. 4. Objectives of the Study
a) General objective of the study
The general objective of the study is to assess challenges and
opportunities of Women street vending in Chiro City administration.
b) Specific objectives of the study
The following specific objectives are identified in line with the general
objective of the study.
1) To identify the driving factors to Women street vending.
2) To identify the major challenges that Women street vendors facing
while operating their business.
3) To assess the opportunities of the street vending for Women street
vendors in study area.

16. 5. Significance of the study
• The study is an attempt to identify the opportunities and challenges of women's
street vending in Chiro City.
• The result of the study will be to provide a better understanding and awareness to
policymakers, to design an effective and efficient strategy for the improvement of
the livelihood of the street vendors, and to ease the burden on the city
administration to control the street vendors as well as to keep the city in order.
 The study will also serve as a stepping stone and make a modest contribution for
those who are interested in conducting research on street vending.
• In addition, the findings of the study will provide information to make decision-
makers and responsible bodies aware of the challenges and prospects of street
vending in the city and alleviate or minimize the challenges.
• Finally, it would have theoretical significance for academic and research institutions.
Consequently, help further researchers as a reference point in the study area.

17. 6. Scope of the study
 This study is limited to street vendors in Chiro city, Western
Hararghe, Oromia regional state, mainly concentrate on challenges
and opportunities of women street vendors in Chiro city, Western
Hararghe Zone.
 Even if, informal sector practiced in others woreda and town of zone
the study will be delimited to Women Street vendors.
 The study will be focused on the socio-economic background
analysis of street vendors, the causes of street vending, challenges
faced by the street vendors and the socio-economic opportunities of
street vending which is operating in Chiro City Administration.

18. 7. Conceptual frame work of the study
Figure 1: Conceptual framework of the study
Driving forces
 Unemployment
 Sense of independence
 Low educational
background
 Absence of work premise
 Lack of sufficient capital
 Easy to entry
Opportunities
 Reduce unemployment
 Source of household
income
Challenges
 Lack of infrastructure
 Legal status
 Limited access to capital
 Insecurity of places
 Suffer competition
 Price fluctuations
Women Street
vending

19. 8. Research Methodology
a) Description of the study area
• Chiro Town is East part of Ethiopia, located in the West Hararghe
Zone Oromia region, and found at 326 km from Addis Ababa.
• Chiro (also called Carcar Ciroo in Oromo) is a town and separate
district in eastern Ethiopia. Located in the Ahmar Mountains, it has a
latitude and longitude of 9°05′N 40°52′E and an altitude of 1826
meters above sea level.
• It is the administrative center of the West Hararghe Zone. The 2007
national census reported a total population for this town of 69,793, of
whom 37,204were men and 32,589was women (national census
reported, 2007).

20. Figure 1: Relative location of Chiro town

21. b) Research Design
• Choosing an appropriate design to gather adequate and relevant information for the study is very
important.
• This study would be used a descriptive research design having the aim of assessing the existing
challenges and opportunities of Women Street vending in the study area.
• Hence, with a consideration to make the research as efficient as possible to yield maximum
information and to collect relevant evidence with minimal expenditure of effort, time and money,
the researcher were employed a descriptive type of research.
c) Research Approach
• To conduct this study mixed types of research approach would be employed.
• The quantitative approach will be used to gather primary data from the respondents through
questionnaires that can be quantified in percentage and frequency.
• On the other hand, qualitative approach would be used to gather information by using
interviews, observation, focus group discussion, and open-ended questions on the questionnaire.

22. d) Target Population
• The target group of this study would be include women street vendors
those participating on vending commodities such as both new and
second hand clothes and shoes, belts, electronics material, plastic
products, and equipment’s used for beautification.
• Since, the target groups of the study are women street vendors, the
exact number of vendors in the towns is not known.
• According to Chiro City trade office the total number of women street
vendors those vending on the street were estimated from 1500-2500.

23. e) Sampling Technique and Sample Size Determination
• To determine a sample size for the study, a sampling frame is required. However,
getting the actual number of women street vendors is not easy tasks due to the
nature of their operation. Their numbers vary depending on time of day or the
season of the year.
• Some vendors only vend in the morning, afternoon, or evening; while some vend
only on weekends; and others vend only during certain seasons.
• This poses a challenge on getting the actual number of street vendors that
operate in Chiro city to draw the sampling frame from which the sample size for
the study is selected.
• This study used quota sampling, non-probability sampling method, because
sampling frames or complete population lists are not available.
• Accordingly, From the total of estimated women street vendors (theoretical
population) 250 women vendors (accessible population which includes Thursday
market vendors, fruit and vegetable and other vendors) were used for the study.

24. The researcher used the sample size determination formula, which is
developed by Yamane (1967), as follows:
n = N / (1 + N(e^2)); n = 155
Where;
n = sample size
N = total population size
e = margin of error or level of precision, at 95% consequently the level
of precision (e) is 5%.
Accordingly, 155 vendors are selected from the total of 250 accessible
populations.

25. f) Data Type and Data Source
 The data was collected from primary and secondary sources.
 Primary data sources contained women who engaged in street
vending in selected areas, government offices that control street
vending.
 Secondary sources included relevant research related and gathered
from different reliable sources both from published and unpublished
sources.
 Regarding types of data, the study would be used Cross-section data
because it is collected in a single time period from different women
street vendors.

26. g) Methods of Data collection
 In order to achieve the intended objectives, data collection instruments
are very important. Thus, the instruments of primary data collection for
this study would be used questionnaires, interviews and observation.
 In this study, both close ended and open ended questions are
employed to collecting a wide-range of information about livelihood
assets, vulnerability and livelihood strategies of the study participants.
 The questionnaire will be prepared in English, but is translated in Afan
Oromo to help the respondents understand it.

27. Method of data Analysis
• The data that gathered from respondents was analyzed and
processed both qualitatively and quantitatively. The quantitative data
will be entered and analyzed using Statistical Package for Social
Science (SPSS).
• Descriptive statistics like frequency, percentage, mean and standard
deviation will be used to describe the collected data.
• Quantitative result from SPSS is presented using table with their
respective descriptive values. For the qualitative data, the researcher
will be employed thematic analysis.

28. Reliability and Validity
 To enhance the content validity, the researcher sought the opinion of
the expert’s judgments especially, a university lecturer who is
perusing studies on area and who has published a paper on areas
will be asked to review the questionnaire.
 Based on the comments from him some amendments will be made.
Reliability Statistics
Cronbach's Alpha N of Items
.810 14
Cronbach alpha is employed to evaluate the reliability scale of construct and
dimension of each construct. The values of Cronbach’s Alpha for the entire
questionnaire were done. The result shows that 0.810Cronbach’s alpha coefficient
values. Hence, the result ensures the reliability of the questionnaire. Therefore, it
can be said that the above questionnaire is adequately reliable.