Street Vending Business and Economic Empowerment of Venders in Lira District. A Case of Lira Municipal Council

CHAPTER ONE

INTRODUCTION

1.0. Introduction The study assesses the factors affecting the performance of street vending business in economic empowerment of vendors in Lira municipal council. This chapter involves background of the study, problem statement, objectives of the study, research questions, significance of the study, and scope of the study, operational definitions and conceptual framework showing the relationship between the study variables. 1.1. Background to the study In most developing countries, informal sector provides a high percentage of urban dwellers with employment and incomes. About 40 to 48 per cent of the urban workforce is in the informal sector and street vendors represent a significant share [WIEGO 1997]. However, the size and contribution of vending activities to the commercial sector or economy as a whole is not well documented and according to Mitullah, (2003) street vending is unaccounted and unrecognized in national economic statistics in most of the countries. Mitullah, (2003) advances that street trade has in the past been viewed as an underground activity that undermines the healthy function of the formal economy and this perception has resulted in conflicts with urban authorities over licensing, taxation, site of operation, sanitation and working conditions that affect the profitability of vending business and economic empowerment of the venders negatively. In most cities, street vending is the most visible informal economic activity, with women dominating most activities within the sector. In Africa, data shows that women’s participation in informal sector employment across countries is higher than 50 per cent [and often more than 60%], except in Bukina Faso where only 41.9 per cent participate in the sector [Jacques Charmes, 2000].