CAUSES AND CONSEQUENCES OF STREET VENDING: THE CASE OF CHELENKO TOWN, OROMIA REGIONAL STATE, ETHIOPIA

Abstract

Street vending activity varies across countries and is a common phenomenon in urban areas worldwide. This study aimed to investigate the causes and consequences of street vending activities specifically in Chelenko town. A descriptive research design was employed, and purposive sampling was used to select participants and site of the study. Data collection instruments included questionnaires, key informant interviews, personal observation, and focus group discussions. A sample population of 114 street vendors participated by completing the questionnaires. The findings revealed that the majority of respondents were born outside of Chelenko and engaged in street vending due to unemployment and poverty, as it offered an easily accessible and simple means of income generation to address their livelihood challenges. Street vendors sourced their commodities from local wholesale markets, manufacturers, suppliers, distributors, and agents, depending on the type of products they sold. Street vending had both positive and negative impacts. Positive impacts included reducing urban unemployment rates, providing affordable goods for the urban poor,and offering more accessible alternatives than formal shops.Negative consequences included traffic congestion, competition for customers leading to theft, hindrance to pedestrian movement, and reduced government revenue due to lack of taxation. Based on the identified problems, the forwarded recommendations include: the government should prioritize environmental concerns, such as cleanliness, individual and group trading spaces, training in solid waste management, and the establishment of fair and organized marketplaces with designated waste collection systems. Policy measures should focus on formalizing and legalizing street vendors based on compliance with laws and regulations, restricting their presence on certain streets, and determining working hours. Inclusive policies should be developed strategically and systematically. Further research should be conducted to formalize the sector and develop strategies to mitigate the adverse impacts of street vending in urban areas.