how do street vendors contribute to the economy

Cities 70, 2231. Local encounters with globetrotters. Finally, SEM gives a complete picture of the entire model, regardless of the complexity of the relationships among the constructs and observed variables. Resistance is formed by three important observed indicators in sequence, as the standardized factor loadings in Table 1 indicate. Structural equation models with unobservable variables and measurement error: algebra and statistics. 63, 536553. Indian J. Labour Econ. This is a case of complementary partial mediation, since the direct and indirect effects are both positive and significant. doi: 10.5430/bmr.v3n1p41, Yatmo, Y. "Bud" Kieser, Behold the Bunnies and Bonnets of L.A.'s Past Easter Celebrations, Lions and Tigers and Cameras! Section Methodology sets out the sampling and data collection procedure, derives measurement items for the constructs of the model, and provides a rationale for using a partial least squares structural equation modeling (PLS-SEM) approach to analyze the data. The authors, therefore, gratefully acknowledge DSR technical and financial support. (2006). doi: 10.1016/j.geoforum.2017.06.005, Tengeh, R. K., and Lapah, C. Y. Evaluating competing theories of street entrepreneurship: Some lessons from a study of street vendors in Bangalore, India. This field is for validation purposes and should be left unchanged. 30, 22932312. doi: 10.1017/S0305741016000278, Henseler, J., Ringle, C. M., and Sarstedt, M. (2014). (2008). Please contact CalMatters with any commentary questions: commentary@calmatters.org. 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. Lastly, the results shown in Tables 5, 6 help to rank the paths in order of importance. Res. 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. Disobedient markets: street vendors, enforcement, and state intervention in collective action. Bus. Second, it investigates the general public's perceptions of the issue of street vending as a problem facing cities in developing countries, which is a necessary step in reviewing public policies and determining how to deal fairly with street vendors. Soc. Scholarly research has focused on street vendors who choose their profession willingly for cultural reasons, and who have a spiritual motivation that gives them satisfaction, enabling them to provide high-quality services in the perception of their clients (Wibisono and Catrayasa, 2018). Third, the study relates specifically to the context of Iraq, a country that has suffered recent political instability. Sustain. If the value of HTMT is lower than the threshold value of HTMT0.85 (the conservative cut-off point) or HTMT0.90 (the liberal cut-off point), discriminant validity is established (Henseler et al., 2014). Table 2. Third, the pervasiveness of street vending has increased dramatically over the last 15 years in the wake of political changes. 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). Comp. doi: 10.1016/j.annals.2011.08.002, Steel, G. (2012b). If we add the small family farms, the informal sector represents a huge part of the entire economy in most developing countries. L.A. Street Vendors Contribute Half A Billion Dollars To Local Economy Recreat. How do job insecurity and perceived well-being affect expatriate employees' willingness to share or hide knowledge? 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. Understanding of this relationship between culture and street vending needs to be enriched, since research has yielded contradictory statistical results (Voiculescu, 2014; Tamilarai and Angayarkanni, 2016; Alvi and Mendoza, 2017; Wibisono and Catrayasa, 2018). 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. Eur. doi: 10.5901/mjss.2013.v4n4p181. Street Vendors and Market Traders | WIEGO 2. Entrepreneurship Manag. This study followed the updated procedure in Nitzl et al. Get a round-up of his columns. Three-quarters of these vendors sell merchandise such as T-shirts, cell phone accessories, or various bric-a-brac. Street vendors contribute to the economy in several ways. The current study formulates a public perspective on this widespread problem in cities, which is a necessary step in developing appropriate legislation. doi: 10.1177/001316447003000308, Ladan, U., and Williams, C. C. (2019). doi: 10.1111/cico.12150, Boonjubun, C. (2017). 4, 181195. On MKURABITA and the legal empowerment of Tanzania's street vendors. North Afr. doi: 10.1108/JKM-03-2020-0232, Steel, G. (2012a). At that time, China had also created 5.64 million jobs. Voyagers of the smooth space. This study contributes to the literature in several ways. Scholars should also revisit the cultural approach and other theories that address street vending and the informal economy (Williams and Gurtoo, 2012; Ladan and Williams, 2019). Bus. 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. Sci. Afr. Manag. The effect size f2 assesses how strongly an exogenous variable participates in explaining a target endogenous variable in terms of R2. Therefore, governments should set up specialized organizations to provide financial support to microbusinesses. Managed informality: regulating street vendors in Bangkok. How do street vendors contribute to the economy? Few studies have taken account of the fact that low-income customers prefer to shop in neighboring streets at low prices and to spend only a short time doing so (Yatmo, 2009; Tamilarai and Angayarkanni, 2016). Our study analyzes the impact of urban culture on the pervasiveness of unlicensed street vending via consumption patterns and resistance, in addition to the impact of a lack of microfinance on street vending via resistance. Scholars often consider the informal economy as an indicator of economic underdevelopment or as an obstacle to economic development. As an initial step, we used the variance inflation factor (VIF) as an indicator of collinearity in the structural model. According to the conceptualization of the International Labor Organization (ILO), the formal economy consists of government entities in addition to registered private units with fixed premises, while the informal sector includes unregistered business units such as street vending, agricultural family production, daily construction work, and home-based enterprises (OECD/ILO, 2019). 18, 259285. doi: 10.21511/ppm.14(3-2).2016.11, Nitzl, C., Roldan, J. L., and Cepeda, G. (2016). As a result of the competing interests between street vendors and regulators, street vending has come to depend largely on a constant negotiation among vendors, buyers, and regulators (Asiedu & Agyei-Mensah, 2008; Recio & Gomez, 2013).Negotiations may be for public space, for economic opportunity, and for power, and may involve the general public, shop owners, and urban regulators (Asiedu . Int. J. Contemp. Ethn. Enterprise Dev. Mediterr. 12:596071. doi: 10.3389/fpsyg.2021.596071, Wardrop, J. 4, 109128. Informal sellers are among the poorest people in society. 8 Ways How Street Vendor Economy may Help in the Economic Crisis India street vendor economy provides earning opportunities to lower-income people. Participants under the age of 25 accounted for 35% of the sample, while 44% were aged 2540, and 21% were 41 or older. doi: 10.1080/09663690601019927, Wibisono, C., and Catrayasa, I. W. (2018). These results contradict previous research (Voiculescu, 2014; Tamilarai and Angayarkanni, 2016; Alvi and Mendoza, 2017; Wibisono and Catrayasa, 2018) and the cultural approach (Williams and Gurtoo, 2012; Ladan and Williams, 2019). The best solution to this problematic issue is that the government should invest to formalize the informality of street vending. Street vendors provide for their family's essentials such as food, clothing, and education and hence become a part of the economy by paying indirect taxes, fines, and fees. Res. Table 6(C) shows that the indirect effect of lack of microfinance on street vending via resistance is significant ( = 0.148, t = 4.816). Our aim was to include 600 participants from a range of social classes. doi: 10.1177/0010414016679177, Husain, S., Yasmin, S., and Islam, M. S. (2015). *Correspondence: Mohammad Asif Salam, masalam1@kau.edu.sa, Conceptual Framework and Hypothesis Development, https://doi.org/10.3389/fpsyg.2021.831014, Creative Commons Attribution License (CC BY). Publicly available datasets were analyzed in this study. 62, 288299. In addition to that, it is obvious that a more static and . doi: 10.1108/EBR-11-2018-0203, Hanser, A. Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on WhatsApp (Opens in new window), Street vendors and wholesale markets along South Los Angeles street in Los Angeles on August 7, 2019. (2020). doi: 10.1002/bse.2747, Wang, Y., Dai, Y., Li, H., and Song, L. (2021b). This suggests that H1 is not supported. doi: 10.1016/j.scs.2020.102316, Al-Jundi, S. A., Shuhaiber, A., and Al-Emara, S. S. (2019). 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). Tackling Vulnerability in the Informal Economy. This study examines the relationship between urban culture and street vending, since the literature on this topic is quite sparse (Tamilarai and Angayarkanni, 2016; Wibisono and Catrayasa, 2018). Get his columns weekly. In Los Angeles alone, about 12,500 street food vendors generate millions of dollars in revenue each year. There are two approaches to estimating such a model: a covariance-based SEM (CB-SEM) approach and a partial least squares SEM (PLS-SEM) approach. Street vendors earn a low level of income and must compete with formal sellers (Agadjanian, 2002). Mediation analysis in partial least squares path modelling, Helping researchers discuss more sophisticated models. Whether it was a parade, dance, tea party, home celebration or just enjoying a good ol' wee dram of whisky, here's a photo essay of how Los Angeles donned its green apparel to celebrate St. Patrick's Day and embrace the luck o' the Irish over the years. Front. (2016) to test the mediation hypotheses. doi: 10.1177/1206331216643778, Recchi, S. (2020). Mark. They are helping those who have been unable to find work and who have not yet received aid due to the pandemic. Moreover, they often employ children, working individually or with their parents (Estrada, 2016), and are frequently accused of drug trading and counterfeiting (Ilahiane and Sherry, 2008). Policy 37, 186202. (2015). Meanwhile, street vendors are reluctant to move into the formal sector, preferring the hazardous conditions of the informal sector to the relative safety of formal activities (Alvi and Mendoza, 2017). While licensed sellers enjoy a formal relationship with municipal authorities and public officials, unlicensed vendors work under precarious conditions, struggling to avoid eviction from the public streets (Cuvi, 2016). According to SEDA (2008) Durban, South Africa is credited for being one of the first to cities to adopt street vendors policy. doi: 10.1177/0891241610387926, Esubalew, A. Since most unemployed and poor people have no access to the financial system to obtain loans, they become resistant. 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. Therefore, H4 is supported. 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. They contribute a lot more than is acknowledged through linkages with the formal sector, generate demand for a lot of other services and contribute significantly to urban food systems. Biometrika, 61, 509515. In order to test the conceptual research model using PLS-SEM, we constructed measurable (observed) variables that reflect constructs drawn from the literature. Mobilities, street vendors and markets. Obtaining a clear understanding of public opinion on the issue is, therefore, a necessary step in reviewing public policies on how to deal fairly with street vendors. A partial least squaresbased structural equation modeling is employed to test the validity of measurement models and the significance of the entire structural model, predictive power, and mediation analysis. Imitation or innovation: To what extent do exploitative learning and exploratory learning foster imitation strategy and innovation strategy for sustained competitive advantage??. 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). 15, 2943. Geoforum 84, 7787. Forecast. Second, PLS-SEM focuses on prediction, which allows the derivation of managerial implications. Determining sample size for research activities. The direct impact of culture on street vending is not significant, and a lack of microfinance positively influences the pervasiveness of trading on streets. 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). 13, 16791688. They also help to eliminate poverty and unemployment, enabling people to depend on their own resources when governments fail to tackle those problems (Onodugo et al., 2016). The Leadership, Advancement, Membership and Special Events teams are here to help. South. Street vending on Addis Ababa's sidewalks: A sign of vibrancy and 29, 467476. (2013). Biometrika, 61, 101107. doi: 10.5539/ass.v11n26p1, Ilahiane, H., and Sherry, J. However, in developing and low-income countries, the informal sector increasingly contributes to the elimination of unemployment and poverty (Ilahiane and Sherry, 2008; Lyons, 2013). Dan Walters brings his passion for government transparency to issues affecting Californians. Tourism's Potential for Street Vendors in Cusco, Peru. Future research should examine the multivariate impact of other important antecedents of street vending, such as poverty (Estrada and Hondagneu-Sotelo, 2011; Saha, 2011), unemployment (Truong, 2018), education (Williams and Gurtoo, 2012; Husain et al., 2015), and immigration (Lapah and Tengeh, 2013). 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). Consequently, the culture generates values and beliefs in favor of peddlers staying on the public streets, with the approval of customers, and resistance supports them in doing this. Street vending, the topic of this blog, has been defined as a service where goods are offered "for sale to the public without having a permanent built up structure from which to sell" (Bhowmik, 2005: 2256). 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. The study, therefore, uses nonprobabilistic sampling with an unlimited population. A., and Raghurama, A. No use, distribution or reproduction is permitted which does not comply with these terms. Bus. Variance inflation factors (VIF) as an indicator of collinearity. Structural model results. When to use and how to report the results of PLS-SEM. doi: 10.1017/S1876404512001030, Mala, J. C. (2013). Table 1 shows the outer loadings of all the constructs in the study. A. doi: 10.1080/10599231.2010.520640, Reuveni, G. (2002). Meas. The dilemma of managing the challenges of street vending in public spaces: the case of Enugu City, Nigeria. To test the significance of the path coefficients, we ran bootstrapping of 5,000 iterations (subsamples) at 95% bias-corrected confidence intervals. Our research pursues two aims. J. Perspect. In terms of lack of microfinance, the most significant factor is that vendors have no access to formal credit facilities. The pervasiveness of street vending can also be explained by a lack of microfinance. 13, 677683. California simplified the recipe for economic success for these entrepreneurs, and deserves credit for allowing them to get cooking. doi: 10.1355/sj30-3f, Voiculescu, C. (2014). Street vendors and wholesale markets along South Los Angeles street in Los Angeles on August 7, 2019. These vendors believe that they have the right to survive in their neighborhood, and that the authorities do not have the right to evict them unless officials arrange alternative employment for them. Itinerant Street Vendors' Individual and Collective Practices of Political Agency in the Tourist Streets of Cusco, Peru. Assessing the oppositional culture explanation for racial/ethnic differences in school performance. Moreover, the new regime has shifted to a free-enterprise market that has replaced the state as the major source of employment that it used to be during Saddam Hussein's dictatorial regime. Street vendors make up 5 % of informal urban employment in India and between 12 and 24 % of informal urban employment in 7 . (2020). J. Dev. Furthermore, the low-income consumption pattern, which can be considered another dimension of culture, does not impact street vending (Table 5), which again contradicts previous research (Steel, 2012a; Trupp, 2015; Tamilarai and Angayarkanni, 2016). 13, 119135. ILO (2013). As a rule of thumb, f2 values of 0.02, 0.15, and 0.35 are weak, moderate, and large, respectively (Hair et al., 2017). Third, the pervasiveness of street vending has increased dramatically over the last 15 years in the wake of political changes. Resistance mediates the effect of urban culture on street vending. 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. The Facts Economic Development and Recovery Street vendors contribute to a thriving local economy and are a crucial part of the pandemic recovery efforts. 62, 113. We also confirm the direct effect of microfinance on street vending (H5) and the indirect effect through resistance (H6). 12:678952. doi: 10.3389/fpsyg.2021.678952, Reid, D. M., Fram, E. H., and Guotai, C. (2010). doi: 10.1080/13629380801996570. To finance their economic activities and social security, street vendors sometimes borrow money at exorbitant rates of interest (Saha, 2011; Martinez and Rivera-Acevedo, 2018).

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