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Vital Contributors to Urban
Economies
Street vendors are an integral part of urban economies around the world,
offering easy access to a wide range of goods and services in public spaces.
They sell everything from fresh vegetables to prepared foods, from building
materials to garments and crafts, from consumer electronics to auto repairs to
haircuts.
Contributions
The Informal Economy Monitoring Study (IEMS) revealed ways in which street
vendors in five cities strengthen their communities:
- Most street vendors provide the main source of income for their households, bringing food to their families and paying school fees for their children.
- These informal workers have strong linkages to the formal economy. Over half the IEMS sample said they source the goods they sell from formal enterprises. Many customers work in formal jobs.
- Many vendors try to keep the streets clean and safe for their customers and provide them with friendly personal service.
- Street vendors create jobs, not only for themselves but for porters, security guards, transport operators, storage providers, and others.
- Many generate revenue for cities through payments for licenses and permits, fees and fines, and certain kinds of taxes. This was true of two thirds of street vendors in the IEMS sample.
Street trade also adds vibrancy to urban life and in many places is
considered a cornerstone of historical and cultural heritage. Yet street
vendors face many challenges, are often overlooked as economic agents and
unlike other businesses, are hindered rather than helped by municipal policies
and practices.
Street trade accounts for a significant proportion of informal
non-agricultural employment in Africa. Street vendors make up 13 per cent in
Dakar, Senegal; 19 per cent in Cotonou, Benin; and 24 per cent in Lomé, Togo.
In some Asian and Latin American cities, street vendors form a large
portion of the urban workforce:
- Hanoi and Ho Chi Minh City, Viet Nam: 11 per cent
- Lima, Peru: 9 per cent
National level statistics reveal that street vendors account for 11 per
cent of total urban employment in India and 15 per cent in South Africa.
Women’s Work
In many countries, especially in Africa, the majority of street vendors are
women: 88 per cent in Ghana, 68 per cent in South Africa, and 63 per cent in
Kenya (ILO and WIEGO 2013). Only in a few countries where cultural norms
restrict women’s economic activities do women account for 10 per cent or less
of street vendors.
Available evidence suggests a higher share of women than men sell
perishable goods (Roever 2014), which are
more likely than other goods to spoil or to be confiscated. Other research has
shown that women street vendors typically earn less than men—and in many
countries, less than half as much as men (Chen and Snodgrass 2001).
Low barriers to entry, limited start-up costs, and flexible hours are some
of the factors that draw street vendors to the occupation. Many people enter
street vending because they cannot find a job in the formal economy.
But surviving as a street vendor requires a certain amount of skill.
Competition among vendors for space in the streets and access to customers is
strong in many cities. And vendors must be able to negotiate effectively with
wholesalers and customers.
Street trade can offer a viable livelihood, but earnings are low and risks
are high for many vendors, especially those who sell fresh fruits and
vegetables (Roever 2014). Having an
insecure place of work is a significant problem for those who work in the
streets. Lack of storage, theft or damage to stock are common issues.
By-laws governing street trade can be confusing and licenses hard to get,
leaving many street vendors vulnerable to harassment, confiscations and
evictions. The IEMS research found that even vendors with a license had trouble
finding a secure vending location, and those following the regulations
sometimes had their goods confiscated. Learn more about Street Vendors and The Law .
Occupational Health and Safety
Working outside, street vendors and their goods are exposed to strong sun,
heavy rains and extreme heat or cold. Unless they work in markets, most don’t
have shelter or running water and toilets near their workplace. Inadequate
access to clean water is a major concern of prepared food vendors.
Street vendors face other routine occupational hazards. Many lift and haul
heavy loads of goods to and from their point of sale. Market vendors are
exposed to physical risk due to a lack of proper fire safety equipment, and
street vendors are exposed to injury from the improper regulation of traffic in
commercial areas.
Insufficient waste removal and sanitation services result in unhygienic
market conditions and undermine vendors’ sales as well as their health, and
that of their customers. Read about a project to address occupational health and safety
issues in Warwick Junction, South Africa here.
Vulnerability to Economic Downturns
Economic downturns have a big impact on vendors’ earnings. In 2009, an
Inclusive Cities research project found many street vendors reported a drop in
consumer demand and an increase in competition as the newly unemployed turned
to vending for income.
A second round of research, done in 2010, found demand had not recovered
for most vendors, and many had to raise prices due to the higher cost of goods.
Competition had increased further as large retailers aggressively tried to
attract customers.
The 2012 Informal Economy Monitoring Study confirmed
that rising prices and increased competition were still affecting street
vendors in several cities. Vendors said their stock was more expensive, but
they had difficulty passing on rising costs to consumers, who expect to
negotiate low prices on the streets. More competition means vendors take home
lower earnings.
Urban policies and local economic development strategies rarely prioritize
livelihood security for informal workers. Urban renewal projects,
infrastructure upgrades and mega events routinely
displace street vendors from natural markets, leaving the most vulnerable
without a workplace.
Good practice documentation shows vendors can help with urban management
challenges like crime and cleaning. Also, basic infrastructure – shelters,
toilets, electricity and water – can both improve vendor work environments and
make public space safer, more comfortable and aesthetically pleasing.
Some cities are working with street vendors’ organizations to formulate
innovative policies, programmes and practices that enable vendors to have a
voice in making their cities more inclusive.
Bangkok is possibly one of the world’s “jewels” when it comes to selling
goods and services in public spaces both day and night. Vending in
Public Space: The Case of Bangkok (Yasmeen and Nirathron 2014)
examines how this situation came to be, especially given the country’s evolving
political and economic agenda.
In the simplest terms, this type of vendor is someone that sells food, goods
and merchandise on the street or in an open-air market rather than in a
traditional storefront setting. The "store" is either a small stand
that can be locked and shut down at the end of the night, or a cart that the
peddler can move from location to location and take home at the end of the
workday.
Everyone purchases something from a street peddler at some point in their
life - hot dogs, pretzels, meat, vegetables, fruit, cold drinks, flowers, small
souvenirs, or mementos from a vacation or trip.
Selling food or other merchandise from a cart or stand on the street may
seem like a perfect way to earn a living while at the same time owning a small
business. Self-employment and the opportunity to set one’s schedule all the
while being outside may seem like the best job opportunity around. With no
building lease costs, overhead of employees, and few bills besides the cost of
the merchandise being sold, street peddling appears to be a relatively simple
business venture.
However, like any other small business, street vending requires time,
patience, some upfront costs, strategic planning, basic marketing strategies,
and the proper licenses or permits required by the state or area.
What does a Street Vendor do?
A vendor or peddler sells merchandise from a cart or station usually
located on a sidewalk or area where pedestrians walk by. A vendor's main
objective is to make money by selling items that people feel like they need or
that they simply cannot miss. Often these items are food-related, as those are
the easiest permits to obtain.
Generally, a vendor will need to obtain a sales tax permit and a tax
certificate from the government's revenue agency, a general business license
from the city or county clerk’s office, and an additional vendor or peddler’s
license from one's city or county government. These permits can take anywhere
from several weeks to several months to obtain depending on the area and time
of year. It also should be noted that many areas throughout North America only
allow a certain number of permits to be given each year so it is important to
research the area where one hopes to work to be certain that a permit or
license can be obtained.
A vendor will also need to be aware and be in accordance with any other
registrations or licensing requirements that apply to the area in which they
will be working. If the items being sold are food-related, contact with the
area’s local Department of Health will need to be made in order to obtain
permits as well as to be advised of health codes and regulations. A food vendor
will likely be required to attend a Food Protection Course for Mobile Food
Vendors.
What is the workplace of a Street
Vendor like?
A street peddler's workplace is ideally a highly trafficked area located in
an area with plenty of businesses and people. The weather is an element that
all vendors must deal with. Days with perfect weather will yield higher
profits, but vendors will also have to contend with days of pouring rain, high
winds, and biting cold in which they will be lucky to break even for the day.
Dates, times, and locations as to which street peddlers can set up their carts
often vary depending upon the area; and depending upon these, there may be
times during the year when street peddling is not allowed.
Street peddlers are in constant contact with potential buyers, so they must
always have on their “game face," so to speak. There is no down time for a
street peddler, as they must constantly be trying to lure in customers to their
cart. It can be a long day that slowly drags by when no one is coming to a
vendor’s cart, or it can be just the opposite with lines of people waiting to
buy the items being sold.
Further Reading
Kevin Rosenberg unfolded a table on the corner of
Seventh Avenue and Garfield Place in Park Slope, Brooklyn, covered it with
camping gear and raked in $500. For the ex-naval officer and former lawyer, it
was the start of his career as a street vendor.
We see and use them in big cities like Toronto,
Chicago and New York. Street Vendors take to the streets to get their products
to the public. Some vendors are restricted to flea market areas. Others get to
set up on a popular corner. Vendors and city regulations differ. This article
will give you some helpful suggestions on setting up your own street vending
stand.
Unlike most other business opportunities, street
trading offers the ordinary individual a realistic chance to start their own
business for a reasonable investment, very few restrictions, low overheads and
little, if any specialist knowledge, skills or experience.
This week, I spent a day wandering around SoHo with
nothing but a pen, notepad, camera and mind full of questions for street
vendors.
Street vendors are the lifeblood of some downtown
areas. They attract tourists to the city, promote community harmony and provide
a service to customers who enjoy shopping outdoors.
For every beautiful day when the streets are teeming
with people, there are many days of rain or cold when you will be lucky to
break even.
You probably have seen or even purchased something
from a street vender or peddler at some point – whether on vacation or in your
own town. Consider for a moment self-employment and the opportunity to work
outdoors with a schedule that is always convenient for you.
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