Bromley (1978: 166) reported that the use of social research methods such as questionnaires, participant and non-participant observation, semi-structured interviews with informants and tape recorded life histories uncovered the dynamics of informal sector employment relationships that were “rarely admitted in more superficial questionnaire surveys”. Most studies presented in table 3.3 used qualitative methodologies such as interviews, case studies and focus group discussions. The merits of these research instruments will be discussed in chapter four.
In participatory methodologies the „research participant‟ is part of the research process.
Innovative tools such as drawing and mapping encourage sub-conscious reflection and elicit information not captured in surveys and sensitive information (such as income) that traders do not feel comfortable discussing (Maxwell et al., 1997; Development of Dynamic Women‟s Enterprise in Business and Art (DWEBA), 2001). These are further discussed in chapter four.
The review of informal sector studies presented here is by no means exhaustive. Only one study of carpenters operating small and micro-enterprises used participatory methods such as wealth ranking and transect walks and integrated ranking, venn diagrams and matrix scoring with focus group discussions (Ward & Gilbert, 2001). The use of these participatory tools led to Ward and Gilbert (2001) identifying key micro-enterprise constraints such as poor infrastructure and led to carpenters identifying their own interventions such as training and business relocation.
outside markets; street traders; hotel traders (relatively affluent traders); middle person traders who buy from farms and sell to markets; long distance traders and wholesalers (Little, 1999). Additionally, research in Calcutta has shown that the socio-economic structure of trading ranges from well-established market traders to poor traders operating from street and wall stalls (Dasgupta, 1992b).
Street trading is trading on the street; and pavements, from formal stalls; carts or on make-shift tables made from card-board boxes or other suitable materials (Bromley, 2000; ILO, 2002). Table 3.4 presents information on the types of goods sold by street traders internationally. Traders or vendors sell products ranging from food to second hand goods and operate within markets, outside markets, and on pavements (ILO, 2002).
Street trading activities are synonymous with survivalist enterprises as these businesses are started with minimal capital and the income earned is barely sufficient to sustain the business as well as the household (Department of Trade and Industry, 1995).
Street traders offer services and manufacture goods in addition to selling commodities.
These services include hairdressing; shoe shiners; shoe repairers; car window cleaners;
tailors; mechanics; furniture makers; metal workers; magicians and garbage pickers (ILO, 2002).
Across Africa, common services offered include transport; music recording; accessories and security (Little, 1999; Mitullah, 2003a). Street trading is certainly a diverse economic activity in terms of services offered and goods sold, but also in terms of income variation between different types of work. Within street trading there are high income earners who sell luxury goods at flea markets and low income earners who sell fresh produce and common items on pavements (ILO, 2002).
Table 3.4 Typology of street vendors (ILO, 2002:50)
Typology of street vendors Types of goods: what do they sell?
Fruit and vegetables;
Cooked food;
Snacks and soft drinks;
Candies and sweets;
Ice cream and popsicles.
Cigarettes and matches;
Newspapers and magazines;
Manufactured goods;
Second hand goods.
Location of work: where do they trade?
System of open air markets in designated areas on designated days;
Concentration of vendors in particular areas such as central business districts or residential neighbourhoods and street corners.
Railway stations, subway stations, bus stops;
Construction sites;
Sports complexes;
Home.
Location of premise: from what do they vend?
Baskets or bowels placed on the ground or carried on the head;
Mats or clothes spread on the ground;
Stool or tab;
Pole over shoulder.
Bicycle;
Wheeled pushcarts;
Wheeled carts with display cases;
Porch-front or window display;
Fixed shed, stall or kiosk.
Employment status: are they independent or dependent?
Independent self employed: with and without employees;
Dependent employees: paid workers for other street vendors or for wholesale/retail traders.
Semi-independent workers e.g. commission agents.
Eventually, street traders develop a mix of products depending on socio-economic status of customers; street traders operating in business districts and in affluent neighbourhoods keep high quality goods at a high price, yielding high profits whereas those in low income areas keep lower quality goods at a cheaper price that yield low profits (Dasgupta, 1992b). Therefore, segmentation within the street trading sector is caused by the location of the business and purchasing potential of customers, both of which determine the street traders food and livelihood security.
Different economic arrangements also characterise street trading. Some traders work for themselves while others such as hawkers are semi-independent and sell products for larger stores (ILO, 2002). In Calcutta, street traders sell the products of large manufacturers and earn 10-20 per cent commission on sales. These traders were often better off than other traders who purchased goods on credit and independent traders (Dasgupta, 1992b).
In most developing countries, women are more likely to be involved in street trading than men and have more hazardous work conditions (Chen, 2001; Chen et al., 2002). In South Africa, male street traders fare better than females, in that males have better stalls, more business contacts, and employ other people to assist in the running of their business (Lund, 1998).