Street Food Vending and Vendor's Household

STREET FOOD VENDING AND VENDOR’S HOUSEHOLD

WELFARE IN ILALA MUNICIPALITY IN DAR ES SALAAM,

TANZANIA

Masters in International Business Management

December , 2020

STREET FOOD VENDING AND VENDOR’S HOUSEHOLD WELFARE IN

ILALA MUNICIPALITY IN DAR ES SALAAM, TANZANIA

JACKLINE VEDASTO KARONDO

A Dissertation Submitted in Partial Fulfilment of the Requirements for the

Award of Masters of International Business Management (MIBM) of the

College of Business Education

Dar es salaam

2020 DECLARATION AND COPYRIGHT

I, JACKLINE VEDASTO KARONDO, declare that this dissertation/thesis is my own original work and that it has not been presented and will not be presented to any other Higher Learning Institution for a similar or any other academic award.

Signature ______Date ______

This dissertation is copyright material protected under the Berne Convention, the

Copyright and Neighbouring Rights Act of 1999 and other international and national enactments, in that behalf, on intellectual property. It may not be reproduced by any means, in full or in part, except for short extracts in fair dealing, for research or private study, critical scholarly review or discourse with an acknowledgement, without the written permission of the College of Business Education. iv

CERTIFICATION

The undersigned certifies that he/she has read and hereby recommend for acceptance by the College of Business Education a Dissertation titled “Street Food Vending

And Vendor’s Household Welfare In Ilala Municipality In Dar Es Salaam,

Tanzania”in partial fulfilment of the requirements for the award of a degree of

Masters in International Business Management of the College of Business Education.

______

(Supervisor`s Name)

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(Supervisor`s Signature)

Date: ______

AKNOWLEDGEMENT

My gratitude goes to the ALMIGHTY GOD for His grace, love, care and favour which strengthened me throughout the study without which this dissertation wouldn’t have been completed. I sincerely thank my Supervisor, Dr. Ubaldus Tumaini for his guidance, patience, and encouragement throughout the research period. A word of gratitude goes to the staff and students Masters of International Business

Management (MIBM 2018/2020) for their friendly communication and instructions, constructive criticism and comments that helped me to make good progress and achievement as far as academic knowledge is concerned.

Special thanks are addressed to my beloved husband Anderson Mutasingwa for his undivided love, patience and support. I am grateful to my sons: Jensen and Andre as well as my parents Mr. and Mrs. Vedasto Karondo. Lastly, I am sincerely indebted to all friends and other individuals who, in one way or another, assisted me at different stages of my study. Their contribution in a way or another made this study a success.

I thank you all!

Table of Contents

DECLARATION AND COPYRIGHT ...... iii

CERTIFICATION ...... iv

AKNOWLEDGEMENT ...... v

LIST OF TABLES ...... ix

LIST OF ILLUSTRATIONS ...... x

LIST OF ABBREVIATIONS ...... xi

ABSTRACT ...... xii

CHAPTER ONE ...... 1

INTRODUCTION ...... 1

1.1 Background of the Study ...... 1

1.2 Statement of the Problem ...... 4

1.3 General Objective ...... 6

1.3.1. Specific objectives ...... 6

1.3.2. Research questions ...... 6

1.4. Significance of the Study ...... 7

1.5 Organisation of the Study ...... 8

CHAPTER TWO ...... 9

LITERATURE REVIEW ...... 9

2.1 Introduction ...... 9

2.2. Definition of Key Concepts ...... 9

2.2.1. Street food ...... 9

2.2.2. Street food vending ...... 10

2.2.3. Household ...... 11

vii

2.2.4. Welfare ...... 12

2.3 Reasons for conducting food vending ...... 12

2.4 Income Generated From Street Food Vending ...... 14

2.5 Street Food Vending and Vendor’s Household Welfare ...... 15

2.6 The Influence of Socio-Economic characteristics to Street Food Vending ...... 16

2.8. Theoretical Framework ...... 20

CHAPTER THREE ...... 22

RESEARCH METHODOLOGY ...... 22

3.1. Introduction ...... 22

3.2. Study Area ...... 22

3.3 Research Design ...... 22

3.4 Target Population ...... 23

3.4. Sample Size and Sampling Techniques ...... 23

3.5 Data Collection Method ...... 24

3.5.1 Questionnaire ...... 24

3.5.2 Observation ...... 25

3.6 Reliability and Validity ...... 25

3.8. Data Analysis ...... 25

CHAPTER FOUR ...... 28

FINDINGS AND DISCUSSION ...... 28

4.1 Introduction ...... 28

4.2 Background Characteristics of Street Food Vendors ...... 28

4.2.1. Age ...... 29

4.2.2. Education ...... 29

4.2.3. Household size ...... 30

viii

4.2.4. Marital status ...... 31

4.2.5. Sex ...... 31

4.2.6. Main source of income ...... 32

4.2.7 Business premise ownership status ...... 33

4.2.8. Period operating business ...... 34

4.2.9. Source of capital for investment ...... 34

4.3 Factors Influencing Selection of Street Food Vending ...... 36

4.3.1 Requires small capital for establishment ...... 37

4.3.2. Profit obtained from food vending ...... 38

4.2.3. Experience and skills ...... 38

4.4. Income Generated from Street Food Vending ...... 39

4.5 Street Food Vending Income and Vendor’s Household Welfare ...... 40

4.5 Influence of Socio-Economic Characteristics of SFV to Household Welfare ...... 42

CHAPTER FIVE ...... 46

SUMMARY, CONCLUSION AND RECOMMENDATIONS ...... 46

5.1. Summary ...... 46

5.2. Conclusion ...... 48

5.3. Recommendation ...... 49

6.0. REFERENCES ...... 50

7.0 APPENDICES ...... 59

LIST OF TABLES

Table 1: Age, Education, and household size for street food vendors ……….…….30

Table 2: Marital Status, sex and source of income surveyed street food vendors……...... 36

Table 3: Reasons for street food vending ….……………………………….………39

Table 4: The extent to which street food vending support household……… ……...42

Table 5: Influence of socio-economic characteristics on street food vendor’s household welfare …………………………………………………………………..44

LIST OF ILLUSTRATIONS

Figure 1: Conceptual framework……………………………………………………20

LIST OF ABBREVIATIONS

FAO Food and Agriculture Organisation

ILO International Labor Organisation

LEP Legal Empowerment of poor

PBFP Property and Business Formalisation Programme

SIDO Small Industries Development Organisation

SMES Small and Medium Enterprises

SFVs Street Food Vendors

SPSS Statistical Package for Social Science

UN United Nations

UNIDO United Nations Industrial Development Organization

UNDP United Nations Development Programme

WB World Bank

xii

ABSTRACT

Urbanisation has increased the demand for street food for urban population, which has then lead to the increase of street food vendors. The business provides income, employment and food for urban dwellers. It also provides the urban dwellers with strong economy. Considering the contribution of street food vending to the urban dwellers and urban economy, this study aimed at understanding the role of street food vending to the vendor’s household welfare in Ilala Municipality in the City of

Dar es Salaam, Tanzania. The cross sectional study was conducted in Ilala

Municipal, Dar es Salaam. Data were collected from 297 respondents using structured questionnaires and analyzed using descriptive statistics and binary logistics regression. The main findings shows that more than half or all vendors were in the business because it requires small capital to start and it generates a reasonable income. Using binary logistics regression, household size and source of capital showed positive significant association with a vendor’s household welfare at p < 0.000 and p < 0.001 levels respectively. Married vendors were more likely to have improved welfare than their counterparts. It is concluded that having active members contributing income to themselves and the country is an asset to the household’s welfare. Permanent business premises for vendors provide permanent address, which increases eligibility for acquiring loans from financial institutions.

The study recommends urban authorities to provide appropriate business education to street food vendors and to design simple, permanent and affordable structures where street food vending can operate more efficiently.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

In the recent years Africa has experienced rapid urbanization. It is estimated that up to 2025 urban population in Africa will be 53 million (Parnell and Walawege, 2011;

United Nations Human Settlements Programme, 2009). Rapid urbanisation on the other hand has led to high demand of street food for consumption hence the number of street food vendors has rapidly increased especially in developing countries

(Mwove et al., 2020). Marras and Ag Bendech (2016) argue that the demand for street food is more influenced by the fact that many people work distant from home and cannot access food from home. Also many women are self-employed for their family livelihood and for that reason they lack time to prepare food, so street food has become a visible solution for them and their families.

Several researches (Addo-Tham, et al., 2020; Adhikari, 2017; Njaya, 2014;

Muzzafar et al., 2009) have contended that street food vending is crucial in the society because it provides income, employment and food for vendor’s household. It is estimated that in some areas street vendor’s average earning is higher than the wages of some skilled labor employed in the formal sectors (Marras, &Ag Bendech

(2016). In Dar es Salaam 92.5% of street food vendors reported their business to provide profit (Food and Agriculture Organisation, 2007).

Street food vending employs skilled, unskilled, educated and uneducated workers of different age and sex (Mathaulula et al., 2016; Mwangi et al., 2002). Charmes (1998) argued earlier that, street food (a component of the informal sector) employs an average of 37.8 percent of labor force in Africa. When compared to formal sectors, it is estimated that in Africa the informal sector, street food included, provides roughly

50% to 75% of non-agricultural employment (Mramba et al., 2017). In Tanzania, it is estimated that 48% of economy is in the informal sector. Employment opportunities provided by street food vending which is a part of informal sector has been increasing over time. According to Marras (2018) in 2007 vendors were capable of employing one employee but up to 2017 they reported to employ three to six people including the owner. Part time employed labours help in preparation and serving of food (FAO, 2007).

Street food vending business provides urban economy with strong economic base

(Hill et al., 2019; Njaya, 2014). This is because the supply chain involves varieties of people from rural and urban areas. The survey conducted by Marras and Ag Bendech

(2016) found that 85% of all street food vendors obtain their cooking merchandise from the local markets. Most of agricultural products such as cereal and vegetables are sold in local markets, so farmers and fishermen are provided with reliable markets for their products. Also, Njaya (2014) asserts that 90% of street food vendors operate in open free spaces with temporary structures, after sale the vendors pay some fee for storing raw food, ingredients and cooking utensils. Watchmen and storeowners obtain the income through little fees paid by street food vendors. Also transporters benefit from food vendors by transporting raw food, ingredients from

markets or home to business location.

Street food vending is also reported to be a source of convenient, nutritious accessible, tasty and inexpensive food to urban labour force, students and other consumers of lower and middle class (Hill et al., 2019; Sezgin & Sanlier, 2016;

Eztold et al., 2009; Muzzafar et al., 2009). According to Njaya (2014) street food attracts more customers because regular customers are given flexible paying options.

Also the food is accessible any time as some vendor’s work in some specific hours in a day and others are available at all hours of day and night. The average working hours for many vendors was ten hours every day (Marras & AgBendech 2016). It is estimated that street food is consumed by two and a half billion people world wide

(Njaya, 2014). Currently there is no exact data about the number of people who depend on street food in Tanzania but many literatures show poor urban dwellers and students to be the most consumers of street food.

Street food vendors operate in populated areas and in places where they are easily seen, such areas include near factories, along the roads, near offices, schools and universities, transit points, construction sites, beaches, lorry stations, commercial centers, and market places. Street food vendors feed people from lower and middle economic classes who out of distance from their homes and economic reasons are influenced to consume street food to reduce their hunger when they have meal breaks.

Despite the benefits of street food vending on urban economy of the vendors, customers and other involved stakeholders such as shopkeepers, fishermen, farmers, there are limited studies on the contribution of street food vending activities to the welfare of the vendor’s household. This study aims at addressing the role of this business to the vendor’s household welfare in Ilala Municipality.

In this study the household welfare was captured by totaling monthly household’s expenditure, which included electricity, water, cooking energy (gas, charcoal, kerosene, firewood), airtime, TV subscription, education requirements, food, and rent were summed up. A household was regarded to have welfare when its total consumption per month was above TZS 416,927 shillings, and not having welfare if its monthly expenditure was below TZS 416,927 shillings (NBS, 2019).

1.2 Statement of the Problem

Street food vending is a business, which has operated for a very long time all over the world. There are different perspectives on the street food vending. While some view street food vending as a source of congestion in urban centres, foodborne diseases since the food is prepared and served in poor environment, others view food vending as the means for livelihood for urban poor and that with proper laws and policies the business can contribute the national development. The study is in support of the second perspective.

There are observable commitment by the government to support and improve the operating environments of street food vending in several ways such as education and

training, giving credit and also have attempted to reform policy and regulations.

There are different initiatives taken by the local government intending to improve small-scale businesses in Tanzania street food vending included. In 2005, the government came up with the Property and Business Formalisation Programme

(PBFP) reform, which attempted to formalize street vending (Marras, 2018). In 2011 the government spent millions of money to build Machinga complex to enhance proper and favorable operating environment for small traders, street food vendors included. In addition, Small Industries Development Organization (SIDO) provides funds for start-ups and existing small-scale business including street food vending.

Just recently, all street vendors have been provided with special identification cards

(Machinga identification cards), which enables the vendors to conduct their businesses without disturbance from city authorities.

Based on the literature above, it is observed that street food vending supports the livelihoods of many households. In fact, vendors depend on this business to take care of themselves and their families, sending children to school, undertaking development projects such as construction of houses, buying assets and so on. Thus, considering all the above strategies and efforts which target all small businesses including street food vending, and considering the crucial contribution street food vending in urban settings, this study aimed at understanding the role of street food vending to the vendor’s household welfare in Ilala Municipality in the City of Dar es

Salaam, Tanzania. Specifically, this study assessed reasons for engaging in street food vending, determined income generated and the extent to which the income

earned support vendor’s household. Also, the study assessed how different socio- economic characteristics influence vendor’s household welfare.

1.3 General Objective

The study aims at understanding the role of street food vending to the street food vendor’s household welfare.

1.3.1. Specific objectives

I. To assess factors influencing street food vendors to engage in such business.

i. To determine the income generated from street food vending.

ii. To assess the extent to which the income earned through SFV support

vendor’s household welfare.

iii. To assess the influence of socio-economic characteristics of street food

vendors to the welfare of their households.

1.3.2. Research questions

i. What are the factors influencing street food vendors to engage in street food

vending?

ii. How much do street food vendors generate from such business?

iii. To what extent does street food vending contribute to the vendors’ household

wellbeing?

iv. To what extent do socio-economic characteristics of food vendors influence

their household welfare?

1.4. Significance of the Study

While there is plenty of data and information concerning street food vending operation in many developing countries including Tanzania, relatively little has been researched of the role of street food vending to vendor’s household welfare.

Specifically the significance of this study include:

It is evident that there are so many people who are engaged in street vending activities. However, it is not with certainty what makes some decide to trade food.

This study feels this gap by unearthing factors influencing street food vendors to trade food items. Also it is argued that street food vending income is high but there is no current data on the income generated by the street food vendors. Through this research recent income earned in food vendors is revealed.

Street food vending business is termed as the means for livelihood for many urban dwellers but there is little known on the extent to which SFVs income fulfil the household requirement. This study bridges the gap by analysing the extent through which food vending support the vendors’ household.

It is observable in many available researches that socio-economic characteristics of food vendors are collected as the basic information in analysis of street food vending, however few researches have assessed their effect in the wellbeing of vendors’ household. So this research bridges the gap by examining the influence of socio- economic characteristics to the household welfare.

The study will inform stakeholders and government authorities at local and national level the great role-played by food vending business to the households, which has direct impact to the national economy in Tanzania. The awareness will enhance improvement of the business operation in different angles.

1.5 Organisation of the Study

This research report has five chapters. The first chapter of this study explains the background of the problem, the statement of the problem, research objectives and questions and significance of the study. This part gives the basic information regarding the study of the role played by street food vending business in the vendor’s household welfare.

The second chapter presents the summary of existing literatures about street food vending. The first part of the chapter provides the definition of key words followed by the previous literatures on street food vending business; the third part has the theories associated by street food vending and conceptual framework.

Chapter three present study area, research design, targeted population, sample size and sampling techniques, data collection methods, reliability and validity and data analysis techniques. While chapter four presents the study findings and discussions on those findings, the last chapter provides a summary, conclusion of the study and recommendations.

CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This chapter presents the summary of existing information concerning street food vending. In this chapter part one presents definition of key words to facilitate a clear understanding of the study and part two has explored the previous information about street food vending. Part three and four has explained theoretical framework and conceptual framework respectively.

2.2. Definition of Key Concepts

2.2.1. Street food

The concept of street food has various definitions. FAO (2009) defined street foods as ready-to-eat food and beverages that are prepared and /or sold by itinerant or stationary vendors, especially on street and in other public places. According to

Artemis and Ramesh (2011) street food is ready to eat or drink sold in street or other public place, such as a market or fair by a vendor or hawker, often from a portable food booth, food cart or food truck. Street food is defined by Tinker (1987) as “any food that can be eaten without further processing and is sold on the street, from pushcarts, or baskets or balance poles, or from stalls or shops having fewer than four permanent walls”. For the sake of this study the definition of FAO is adopted.

The types of street food sold take endless varieties because of various raw materials used and different preparation techniques. Tillerman (2012) grouped the food by considering the perishability of the food. In their studies Marras and AgBendech

(2016) grouped street food by considering cooking methods such as fermentation, boiling, frying, smoking or grilling. In general cereal type of food dominated many street in Africa, this is influenced by easy and cheap access of merchandise in the market. Also cereal can be used to form different varieties of food

(Iyenda 2001; Mwangi et al, 2002). The varieties observed in the food sold by food vendors are more influenced by the preference of local customers.

2.2.2. Street food vending

Bhowmik (2005) defines a street vendor as a person who offers goods for sale to the public without having any permanent built-up structure from which to sell. Street food vending is defined by Magehema (2014) as a small-scale business of producing and distributing services of the cooked food at different times. Street food vending involves selling ready-to-eat food prepared on street or at home and consumed without any further preparation (Mathaulula et al., 2016; Muzzafar et al, 2009). The common used names for street food vendors in Tanzania are “Mama Ntilie”, “Baba

Ntilie”, “Bei poa” and “Bei mapatano”.

Being a part of informal sector, street food vending operation can be permanent or mobile where by the food is offered in a housed area, in a truck or trailer or restricted mobile food unit. In most cases street food vendors operate in open spaces where they use temporary structures for their business (Njaya, 2014). Also few vendors who have permanent structures for the business are subjected to rent payment which ranges 1000 to 20000 in a month (Marras, 2018).

Hope (2001) argues that jobs in the informal sectors are cheaply created and employ large number of people. Self-employed food vendors in urban use hired labourers to help with cooking, cleaning the utensils, serving food and buying merchandise from the market. Dipeoul and Akinbonde (2015) identified that 77% of vendors use hired labours in Ghana, however in Malawi only 30% of food vendors had labourers leaving 70% of food vendors working alone (Njaya, 2014). The food-vending sector provides employment to people in the society who would otherwise be unemployed and hence reduce dependency burden to the family and national.

2.2.3. Household

The household is defined as a group of persons who makes a common provision of food shelter and other essentials for living (United Nations, 2017). It composes mostly people who are related by marital ties or family. It is a socially recognized unit headed by one person, either a man or woman who controls its economic and social management (Milanzi, 2011). In Tanzania the average number of household members is 4.6 (NBS 2019).

There is a great relationship between household size and household welfare. This is because when the household has many dependents, spending for the household expenses increases. NBS, (2019) identified that most households labeled as “poor” had large number of dependents, and mostly were above six. On the other hand the household whose members are many and income earners, the household welfare is stabilized because the household consumption expenses is shared.

2.2.4. Welfare

Welfare is a broad concept. It’s understanding is based on the approach used to define the term. The term can be defined in economic, psychology, philosophy or sociological perspectives (Greve, 2018). In this research welfare is defined using economic perspective. Economist assumes that the household objective is to maximize utility and since utility is unobservable, household consumption is the noticeable variable (Glewwe, 1991). For that reason this study uses household consumption as a measure household welfare. This is because, consumption has few measurement errors and fluctuates less compared to income thus it provides static and less changes in household income over time; also respondents are more willing to give their consumption information than their income (Ravallion, 1992).

Household welfare is measured by household consumption in relation to Tanzania mainland average of the household consumption, which is TZS 416,927 (NBS 2019).

2.3 Reasons for conducting food vending

Street food vending is a vibrant and a dominant business especially in developing countries. Adhikari (2011) identified lack of employment from other sector of the economy as the force for many Kathmandu urban migrants to get involved in food vending business. He further explains that rural dwellers own small areas for agricultural production hence with the increase of dependents in the household they are forced to move to urban and start food vending. Winter (2017) addressed several reasons, which forced people to involve in street food vending as the livelihood strategy in China. Many vendors had time for vending activities because many vendors were retired pensioners, others were in the business because they lost their

jobs and others had difficulty finding employment. Few of them were forced in, because of disability and a very small number were attracted with the low capital startup for the business. Dipeoul and Akinbonde (2015) found that many street food vendors in Nigeria were attracted to the business because they thought it would be profitable. Other reasons identified include lacking employment and others inherited the business from the family.

In Tanzania the study by Milanzi (2011) in Morogoro provided two main reasons for street food vending, first is earning income and second, is to assist their spouses.

Beghasha (2012) identified three reasons that attract people shifting to food vending business in Mwanza. First, the vendors were avoiding low profits and competitions from the previous business. Other people moved to food vending because they changed their residences. Rutahindurwa (2013) identified pull and push factors for food vending, pull factors include need for independence and need for challenges, improved financial opportunity, self-fulfillment, desire of being the own boss, and flexibility for balancing family and work. Push factors are divorce, death of spouse, and dissatisfaction with salaried jobs. Zobida and Mutabaki (2012) associate the growth of vending business with the failure of government to create jobs. Moreover, economic and political changes in the country have great impact on the people’s lives, these studies were conducted more than five to six years back, there is the need to acquire new and fresh data concerning to issue on discussion.

2.4 Income Generated From Street Food Vending

Street food vending business has employed large population of urban dwellers and it feeds billions of the people in the world. Thus the business is the source of income to many poor urban dwellers (Addo-Tham et al., 2019; Njaya 2014). Studies by Iyenda

(2001), Rutahindurwa (2013) and Njaya (2014) have shown that many street foods vendors rely on food vending as the main source of the income. Others use the income as the supplement. In Kenya 40.3% of vendors relied on street food vending as the only source of income, 58.4% vendors obtained half of the income from the business while 25.6% said to obtain only a small amount of income from street food vending (Mwangi et al., 2001).

Street food vending provides profits and other benefits associated with the business.

Etzold (2009) argues that, financial turnover of street food vending business runs into billions of dollars and that it is substantial when compared to the wages of factory workers, day labours and rickshaw-pullers. According to Marras and Ag

Bendech (2016) the average income of food vendors is five times higher than the official minimum wage earned by public sector workers. In Tanzania, almost all street food vendors in Dar es Salaam reported that their business provides profit

(FAO, 2007). The average earned daily by vendors was between TZS 5000-20000 in

Tanzania (Marras, 2018).

However income generated through food vending is not static overtime, it can be affected by different variables. Etzold et al., (2009) identify food product sold, the vending site, number of customers, time spent working, business location as the

reasons for inconsistent vendors’ income. Also other reasons were seasonal price fluctuations (Tillerman, 2012) and environment of business operation (Stutter, 2017).

Business operating environment for some vendors increases or reduces the expenses incurred by the vendors in the business. In Hanoi Vietnam many stationary street food vendors operate their kitchen from the bottom floor of their home

(Stutter, 2017). Operating in such environment reduces the expenses because the vendors do not pay monthly rent and sometimes they use same kitchen utensils used in their houses. Some of them use family labours in daily food preparing and serving of the customers (Dipeoul & Akinbonde, 2015). Also street food vending activities reduces the money spent in buying food as many street food vendors use the food from their business to feed their family.

With these literatures much is left unknown concerning the income generated by street food vendors in Ilala municipal in Dar es Salaam. The differences in the time and study location provides the gap for this study to fill, by assessing the income generated from street food vending activities in Ilala, Dar es Salaam.

2.5 Street Food Vending and Vendor’s Household Welfare

Literatures from different countries indicate that street food vending provides income to support the household requirements such as food, shelter, school fees, health care, housing rent and other household requirements. In Bangladesh, 60% of street food vendors income is spent on food, 15% for housing rent, remained 25% consists of all other expenses such as those on clothing, remittance, health, education, traveling and expenditure on cigarettes (Muzzafar et al, 2009). In street food vending, the vendors

acquire the opportunity to raise funds, which support medical expenses, education and supplement family income (Adhikari, 2017). According to Milanzi (2011) the income earned by food vendors is low but it is significant in supplementing household needs.

Tillerman (2012) identified that by participating in saving groups street food vendors accumulate enough money at the end of month, which is used for household expenses. Also food vendors provide nutritious food for the household on daily basis or as leftovers (Mwangi et al., 2001; Tillerman, 2012). By feeding food from the business or leftovers to the household, vendors fill the larger gap of household requirement since food account for high part of household expenses. Street foods vendors fall below the poverty line but above the food poverty line

(Bhowmik, 2005). There is no recent known available literature, which has explored the extent through which Ilala Municipal street food vendors support their household.

This provides the gap for this study to fill.

2.6 The Influence of Socio-Economic characteristics to Street Food Vending

2.6.1 Gender

Studies from different areas have indicated women dominance in street food vending business. More than eighty percent 80% of surveyed vendors were women (Njaya,

2014; Magemeha, 2014; Marras & AgBendech 2016). The high percentage dominance of women in street food vending business in Africa is caused by different reasons including women trying to complement their household needs

(Milanzi, 2011) lacking formal education which narrows their chances for formal

employment opportunities (Njaya 2014) and women competence in cooking skills

(Mwangi et al, 2002).

2.6.2 Age

The age of most street food vendors in many African countries ranges between 21-49 years (Milanzi, 2011; Magemeha, 2014; Njaya, 2014; Marras & Ag Bendech 2016).

In most African countries many people who are economically active age group get involved in street food vending because of several responsibilities for themselves, their families and their relatives (Magemeha, 2014). Since street food vending business requires small capital in its establishment, it becomes the easy option for many younger people to raise funds and food for their dependents.

2.6.3 Education

Several studies show high dominance of vendors with basic or primary education

(Mwangi et al., 2001; Milanzi, 2011; Magehema, 2014; Njaya, 2014). Poor education causes the person to lack formal employment because of lacking knowledge, experience and skills for the job. This in return influences people to opt for the activity, which requires simple skills. In most cases street food vendors acknowledge the importance of business experience rather than formal education

(Muzzafar et al., 2009). Street food vending requires simple skills, and hence skilled and unskilled labor is used in street food vending activities.

2.6.4 Marital status

Several people who involve in street food vending activities their marital status differ but many of them are married (Milanzi 2011; Rutahindurwa, 2013; Magemeha,

2014; Njaya 2014), followed by the singles (Magehema, 2014; Njaya, 2014).

Married people are forced to get involved in street food vending business so as to get income, which largely support their household requirements.

Most of the literatures have gone through socio-economic characteristics of street food vendors as the part of basic information required in studying the street food vendors (Mwangi et al 2001; Milanzi, 2011; Magehema, 2014; Njaya, 2014).

However Muzzafar et al.,(2009) assessed the influence of education, years of vending experience and initial income to the rise of sales of street food vendors. Obi-

Nwosu et al., (2013) have examined the influence of gender, socio-economic class and level of education on the patronage of street food in Nigeria. Adhikari (2017) assessed how some socio-economic characteristics such as age, sex, and education have effect to the income generated by street food vendors. None of the studies have focused on how socio- economic characteristics influence to the welfare of street food vendors’ household so this study fills the gap.

2.7 Conceptual Framework

Conceptual framework is a diagrammatical presentation of the relationship between independent and dependent variables to be used in the study. In this study dependent variable is vendor’s household welfare, which is computed by summing up monthly household expenditure on basic expenses such as utilities (electricity, water, cooking

energy), education, food, and rent. The household welfare is compared to the national average household consumption, which is TZS 416,927 per month. A household is considered to have welfare if its consumption expense is at least TZS

416,927 and not having welfare when its total expenditure is below the national average.

Independent variables are the selected socio-economic characteristics of street food vendor’s household, which affect the dependent variable. The variables included in the binary equation are sex, age, marital status, household size, education, main source of income, asset ownership, premise ownership, duration in a business, source of capital, and other household expenses contributor. It is assumed that the socio- economic characteristics of the vendor’s household influence vendor’s income, which in turn affect household consumption and ultimately household’s welfare.

Independent variable

- Age -Marital status -Household size Dependent variable Vendor’s -Education level Household -Household welfare -Asset ownership income consumption

-Premise ownership -Duration in business -Source of capital - Main source of income

- Gender -Another contributor

Figure 1: Conceptual framework. Source: Researcher,2020

2.8. Theoretical Framework

Theories are important in research as they form basis from which concepts are

developed. Neuman (2007) defines the theory as a system of interconnected

abstractions or ideas that condenses and organizes knowledge about the social world.

Since street vending has been a difficult phenomenon to theorize as reported by

Munishi and Kirumirah (2020), this study adopted the structuralist perspective to

informal the study.

2.8.1. Structualist perspective

This perspective is pioneered Manuel Castells and Aljandro Portes in 1989. They view informal sector as activities conducted by people who lack other means to fulfill their necessity. So for structuralist informal sector is a necessity driven activity. Informal sector activities involve marginalized population in the society for that reason its operation is insecure and in poor conditions.

The theory is relevant, for this study which seeks to identify the reasons as to why urban dwellers involve themselves in street food vending. The available literature indicates that most of people who involve in the vending business are those who have either failed to obtain employment or those who have poor qualifications to be employed in the formal sectors. Also the fact that many vendors are in the business because it requires small capital to establish is evident that they are poor marginalised population trying to survive by conducting the business, which requires small investment to gain high profit (Adhikari, 2017).

CHAPTER THREE

RESEARCH METHODOLOGY

3.1. Introduction

The chapter explains how the research is designed and conducted. It further describes the research design, area of study, targeted population, data collection methods, sample size and sampling techniques, reliability and validity of the data and data analysis techniques.

3.2. Study Area

This study was conducted in Ilala municipality in Dar es Salaam region. The municipal has 365 km square and has 23 wards with a total population of 1,220,611 according to 2012 census. The selection of the municipal was based on the fact that

Ilala is the oldest municipal in Dar es Salaam and it host large markets such as

Kariakoo, Mzizima fish market, Kisutu, and Buguruni and that; it hosts many large industries mostly allocated markets, industries, bus stations acts as the strategic areas which attracts many vendors since the demand for food is high in those areas.

3.3 Research Design

In this study, cross-sectional research design was employed. This research design allows data to be collected at one point in time. The design was suitable because of resource constraints; it saves resources because the data is collected once

3.4 Target Population

The targeted populations for this study were men and women who conduct street food vending in Ilala municipal, Dar es Salaam region. The study targeted Ilala municipal food vendors because the municipal has old large markets such as

Kariakoo, Buguruni, Kivukoni and it has several industries where by many street food are attracted to operate.

3.4. Sample Size and Sampling Techniques

When conducting research it is difficult to reach all population so the element of planned or intended population is taken and used in the study. This study draws data from a sample of 297 street vendors from six wards in Ilala Municipality Dar

Salaam, Tanzania. A multi-stage sampling technique was used to sample the respondents. The first stage was applying Purposive sampling to select the City of

Dar es Salaam and Ilala Municipality. The City of Dar es Salaam was purposively selected because it is the businesses hub in the country and Ilala Municipality was selected because is the oldest municipal.

The second stage was selecting wards for study using simple random sampling technique. Twenty-three wards of Ilala municipal were written on pieces of papers and six wards, which were Gerezani, Upanga East, Buguruni, Vingunguti, Kipawa and Segerea were selected randomly. Simple random technique was used because it minimizes bias by equally sharing or distributing it (Creswell, 2012).

Thirdly, selection of all 297 respondents were purposively selected due to the nature of the study where by only the street food vendors who had dependents in their household were suitable for the study. Leary (2010) argues that purposive sampling involves the selection of a sample with a particular purpose in mind and the researcher concentrates on people with particular characteristics who are better positioned to facilitate the success of a study. The sample size was justifiable based on the argument of (Bailey, 1994) that regardless of the sample size, a sample of 30 respondents is a bare minimum for studies in which statistical data analysis is to be done.

3.5 Data Collection Method

The study used primary data only specifically; questionnaires and observation were used to obtain data.

3.5.1 Questionnaire

Questionnaires were administered face-to-face where by the researcher asked open- ended and closed ended question. Questionnaire was used to capture information on socio-economic characteristics of food vendors, reasons for food vending; income earned from street food vending and to what extent the income earned support the vendor’s household. Filling the questionnaire were left to the researcher, this was due to the nature of respondent who mostly had to serve the customers during the conversation. This method is selected to reduce bias and it is efficient since all respondents are required to answer the similar questions.

3.5.2 Observation

In this study the data on street food vendor’s facility, structure, and the gender of food vendors were obtained through observation. The method was suitable because the method helped in discovering what people do and enables the researcher to have a full picture on the integration of the business activities (Sunders 2009; Ally 2005).

3.6 Reliability and Validity

Reliability measures the extent to which results are consistent over time. Creswell

(2012) argues that reliability means that scores from an instrument are stable and consistent. Validity determines whether the method used by a researcher has measured what was intended. A valid research should properly collect or interpret its data so that the conclusion accurately reflect and present the world that was studied

(Yin, 2011). The data collection instruments were pre-tested using ten conveniently selected street food vendors in Segerea ward. Corrections and modification of the instruments were made according to the experience gained during pre-testing. The researcher assured confidentiality to the respondents and respondent’s consent was obtained before proceeding with questions.

3.8. Data Analysis

The data collected from the field was, verified, edited, and summarized, and organized to answer each objective in the study. Respondent’s answers were assigned numerical and ordinal codes and all questions and their codes were entered and saved in Statistical Package for Social Sciences (SPSS) software, which helps

analysis quickly and easily. The data was analysed by using descriptive and inferential statistic measures.

Descriptive statistical measures such as mean, standard deviation, percentages, frequency and cross tabulation were used to obtain reasons for food vendors to involve in street food vending and the monthly income obtained; extent to which food vending income support the household.

Inferential analysis started by totaling monthly household’s expenditure, which included electricity; water, cooking energy (gas, charcoal, kerosene, firewood), airtime, TV subscription, education requirements, food, and rent. A household was regarded to have welfare when its total consumption per month was above TZS

416,927 shillings, and not having welfare if its monthly expenditure was below TZS

416,927 shillings (NBS, 2019). Afterwards, binary logistic regression model was used to determine the key explanatory factors associated to improved vendor’s household welfare. In this case, the probability of improved household welfare (Y), given the presence of the independent variables, can be represented as the conditional probability:

− (α + ∑βiXi) P (Y=1|X1− Xn) = 1/ (1+e ) (1) where P is the conditional probability that household i experiences improved welfare,

Y = status of vendor’s household welfare, α = constant term, βi = coefficient for ith independent variable X, with i varying from 1 to n, e = error term. The significance of the coefficients βi was tested with the Wald test, which was obtained by comparing the maximum likelihood estimate of every βi with its estimated standard

error (Hosmer and Lemeshew 1989; Van Den Eeckhaut et al. 2006). By observing the sign of a dependent variable’s coefficient estimate, the effect of that variable on the probability of a vendor’s household welfare was determined.

In the context of this study: Y = household welfare (1 = improved household welfare,

0 = otherwise), x1 = age of street food vendor (in years), x2 = vendors marital status

(0= widowed, 1=divorced,2=single, 3=married ) x3 = household size ( number of persons who makes a common provision of food, shelter and other essential for living), x4 = Level of education of street food vendor (number of years of schooling), x5 = main source of income of a vendor (0=yes, 1=no), x6= Motorcycle ownership (0=yes, 1=no), x7 = premise ownership (0= open free space, 1=rented), x8= duration in business(in years), x9 = main source of capital ( 0=aid,1=own saving, 2= loan) x10= gender (0 female, 1= male), x11 = other person contributing income (1=yes, 0=no).

CHAPTER FOUR

FINDINGS AND DISCUSSION

4.1 Introduction

This chapter presents the finding and discussion from the study conducted in Ilala municipal were by 297 street food vendors were surveyed. The socio-economic characteristics of the respondent are presented first, followed by the factors influencing people to engage in street food vending business. The third part of the chapter focuses on determining the income generated from street food vending.

Fourthly, the section provides the assessment of the extent to which the income earned through street food vending support the vendor’s household welfare. The last part focuses on the assessment of the influence of socio-economic characteristics of the street food vendors to the welfare of their household.

The main objective of this study was to gain the understanding of the role of street food vending to the welfare of street food vendor’s household. Specific objectives were; to assess factors influencing street food vendors to engage in street food vending; determine income generated from SFV; assess the extent to which income earned through SFV support vendor’s household welfare; and to assess the influence of socio-demographic characteristics of SFV to the welfare of their households.

4.2 Background Characteristics of Street Food Vendors

This part presents background characteristics of street food vendors, which includes age, marital status, sex, education level, household size, and source of income.

4.2.1. Age

In this study the mean age of the respondents was 37.5±7.9 whereas the minimum and maximum age of food vendors were 20 and 70 years respectively. This could indicate that street food vending is mostly dominated with people who are in the thirties. People in this age group are more energetic, aggressive and determined to accomplish their dreams compared to children and aged people who are less active

(Rutasira, 2002). Another explanation is that, people in this age group are highly depended upon by their family and other dependents in terms of paying bills, utility, school fees, rent and other necessities. Uwatije (2013) identifies that youth and adults as the main breadwinners for the family livelihood. So for them to provide crucial needs for their dependents they have to work hard in the vending business.

This finding is consistent with the study conducted in different parts of Tanzania such as Morogoro (Milanzi, 2011), Mwanza (Beghasha, 2012) and Dar es salaam

(Rutahindurwa, 2013) of which all studies found that the street food vendors to be between the age of 29-45. However the finding is inconsistent to Winter (2017) whose study reports that retired elders occupy street food vending. This inconsistence could be attributed to contextual differences.

4.2.2. Education

In the survey respondents’ level of education ranged from not having any formal education to college education. The mean years for schooling was 7.3±2.3 years, meaning that the majority of vendors had attained seven years of primary school education. The fact that street food vending is dominated with primary school

education leavers could be because the entry to such business requires basic skills.

Also it implies that the business offers opportunity and hope for many people who lack formal education, which deny them official employment opportunities. This is due to the fact that food vending business require simple skills which to attain them does not necessary need formal education. Muzzafar et al (2009) found that many food vendors in Bangladesh perceive skills and experience to be crucial in food vending business over formal education. The finding is comparable to those of

Dipeolu et al.,(2015) where by 45% of people who were selling food had basic or primary education. However the results are inconsistent to Mathaulula et al., (2016) who reported that 71% of food vendors had secondary education.

4.2.3. Household size

The average number of household members was 4.17 ±1.585.Based on the average urban national household size, which is 4.2 (National Bureau of Statistics, 2019).

The finding is comparable to the findings of Dipeolu et al., (2015) in Nigeria where by 36.6% of all street food vendors had three to four members in the household members.

Table 1: Age, Education, and household size for street food vendors n=297 Variable Mean (and standard deviation) Age (years) 37.5±7.9 Years of schooling 7.3±2.3 Household size (persons) 4.17 ±1.585. Period in a business 4.47± 6.182

4.2.4. Marital status

From the survey 47.5% respondents were married, 36.4% divorced, 9.8% widowed and only 6.4% were single. Dominance of married vendors implies that street food vending provide means to acquire family requirements such as food, clothes and other bills, which is difficult especially when the household has dependents. In her study Milanzi (2011) found that some street food vendors involve in street food vending business to support their spouses financially. Another implication is that operating vending business is cheap to married people compared to unmarried. This is observed when many vendors use cheap family labour such as children and relatives in doing food vending activities such as cooking, serving and other activities. Otoo et al., (2011) view that street food vendors employ and use family and friends labour members who may or may not be paid. This study results conform to Magemeha (2014) who indicated that 46.6% of street food vendor’s respondents in Songea, Tanzania were married.

4.2.5. Sex

The finding also shows that about 94% of the respondents were women as compared to men who form roughly 7% of this group. The implication of this finding is that although women are traditionally known to be housewives, more and more women are now engaging themselves in productive activities such as participating in street food vending. By engaging in street food vending, women are likely to earn income, feed their families and dependents and take good care of their children.

Otoo et al, (2011) identifies that more than 90% of women vendors use their income to fulfill household expenditures. The main categories of the food that they are

engaged in include snacks, breakfast, main meals and drinks. Women dominated most food categories except drinks, which were dominated by men.

The implication to this finding is that, street food vending provides opportunity for women to involve in multiple activities for the betterment of the household. In this study some women were observed carrying their children while preparing or serving the customers and in other scenarios women had their children taking breakfast or lunch before or after school. It could also be caused by the fact that women learn cooking and serving skills from early childhood, something that makes it easy for them to engage in this business as compared to men. This supports the finding that, women focus on the enterprises that conform to their domestic skills especially cooking (Otoo et al, 2011). This result conforms to other finding from other African nations such as Malawi (Njaya, 2014), Nigeria (Bamigboye, 2015), South Africa

(Hill, 2016), where by women dominated the food vending business. However the results are indifferent to Assan and Chambers (2014) who reported that men were dominant in food vending in Delhi India this might be caused by the differences in cultural traditions and religions requirements.

4.2.6. Main source of income

All the respondents (100%) reported that SFV was their main source of income.

However, 93.7% of the respondents were engaged in SFV alone whereas the rest had other business activities on top of SFV. Other types of businesses they were engaged in include selling charcoal, tailoring, livestock keeping, lending money, saloon, farming and so forth. The implication is that street food vending is an activity, which

is in the capacity of many people by considering entrance requirements and provides them with enough income. Bhowmik (2005) argue that street food vending business provides enough income to most people compared to other vending activities. On the other hand out of uncertainties accompanied by the business some vendors opt to involve in other activities, which can support them when the main activity has crisis or problems. This study is in conformity with Magemeha (2014) who found that street food vending was the main occupation for all vendors in Songea, Tanzania and

Njaya (2014) whose study shows that only 10% of all vendors had alternative activity for income production.

4.2.7 Business premise ownership status

The results show that most street food vendors (76.8%) conduct their businesses on an open and free space. Whereas 23.2% of the street food vendors were conducting their business on a renting space paying between 15000 and 25000=. There are several explanations about vendors to operating in open and free spaces. One explanation is the preferences; food vendors prefer crowded and strategic areas such as near roads, construction sites, bus stands, industries, school and in the market where customers can access them easily. One challenge of such areas is the lack of proper infrastructures to enhance business operation (Mkhize et al., 2013). These areas are strategic since they determine the vendors earning. According to Otoo et al., (2011) Iyenda (2001) and Habib & Mutabazi (2012) food vendors allocated in areas with high economic activities and in town produce high income because of the high demand for food. However in some cases vendors are forced to return home with the leftovers as reported by Dipeolu and Akinbode (2015).

Another explanation is that street food vendors lack money to rent permanent, secure and decent business structures. The study findings are in line with Njaya (2014) who observed 90% of food vendors in Malawi using open free space for their businesses.

4.2.8. Period operating business

In this study street food vendor’s minimal duration in street vending activities were below one year and the maximum duration was 43 years. The mean was 4.47± 6.182.

Operating in certain activity for a period of time provides knowledge, skills, relationship and experiences, which in a long run provides high profit and high business return. Otoo et al., (2011) argue that, the success of many informal enterprises is highly dependent on the long-term relationship between the customer and owner of the business.

4.2.9. Source of capital for investment

From the survey more than half of all vendors (61.0 %) used their own saving to establish their business, 20.5% obtained aids from friends and family members,

18.5% took loans from small micro financial institutions. The implication to this is that street food vending initial capital is low compared to other business.

Milanzi (2011) most of food vending ventures initial establishment capital ranges from 1000- 14000. This is motivated by the flexibility in the nature of vending where by the operation can be on mobile basis or stationary in free spaces where there is no rent payment. On the other hand food preparation expenses are small for those vendors who prepare the food from their household, as the cooking materials and

utensils can be shared with the family.

However the investment made in food vending ventures has high impact to the business. It may increase or the decrease the income earned in the business. Vendors with high capital investment are likely to obtain high income when compared to those who have small investment because with enough capital, food vendors can obtain varieties of all required merchandise, premise and utensils needed for the business. Otoo et al., (2011) argue that the success of many small ventures depend the capital invested in the business. Also food-vending ventures with high investment are likely to be big with many employees so it attracts a very large number of customers. Adhikari (2017) observed positive relationship between investment and income that the vendors’ income increases as their investment increase.

The findings are compatible to Milanzi (2011) and Njaya (2014) who obtained nearly similar findings concerning the initial source of capital were by 41.1% and 50% respectively of all respondent obtained the capital through own saving. These findings are incomparable to Njau and Komba (2014) who found that the majority of food vendors took loans from micro financial institution for their business establishment.

Table 2: Marital status, sex and source of income surveyed street food vendors

(n=297)

Socio-economic characteristics Percentage (Frequency, n=279)

Marital status: Married 141 47.5 Divorced 108 36.4 Widowed 29 9.8 Single 19 6.4 Sex: Female 279 93.9 Male 18 6.1 Alternative source of income: Yes 18 6.0 No 279 93.9 Source of capital Family money/aid 61 20.5 Own saving 181 61 Loan 55 18.5 Business premise Ownership Free open space 228 76.8 Rented 69 23.9

4.3 Factors Influencing Selection of Street Food Vending

Results in this section provide answers to the first objective of this study, which was assessing factors influencing people to involve in street food vending business. Street food vendors sell varieties of food; for the purpose of this study these varieties of food are grouped into four categories namely main meals, breakfast, snacks only and drinks. Main meals include rice or ugali with beans, meat, fish, sardines, or green vegetables, makande (dish of mixed maize and beans). Breakfast include mtori

(blended banana soup mixed with meat), maize/ rice porridge, tea and coffee with burns, chapatti, cakes, fried cassava and potatoes. Snacks included food in the group of breakfast without coffee, tea and mtori..

4.3.1 Requires small capital for establishment

About half of all respondents (50%) reported that they selected street food vending because the business requires small capital to start. For start-up, money for basic requirement such as merchandise, cooking and serving utensils, money for constructing the temporary premise or for renting is required. For many food vendors the basic required investment capital is for buying food preparation merchandise since many operate on free open space and for some food preparation expenses is lowered since all food preparation is done at their home with shared cooking utensils and merchandise.

The implication to these findings is that street food vending activities brings hope for many urban poor who are educated and uneducated by initiating business with small capital for their families’ livelihood. Street food vending initial capital attracts people to whom vending business is seen as a temporary activity as they continue with job seeking; that even when they decide to cease the operation after getting the job the received loss is small. This is evident from the study of Mwangi et al., (2001) who argue that vendors from lower middle-income household involve in food vending on temporary basis as they wait for better employment. Bhowmik (2015) identifies that many unemployed graduates are forced to involve is street food vending in

Bangladesh.

Also for uneducated population, out of lacking qualification for employment the business with small initial capital is the only means of their survival. Adhikari (2017) argues that, poor people are interested to street food activities as is a way to generate

income by investing small capital. The findings are inconsistent to winter (2017) where by only 7.5% started food vending because of low capital startups.

4.3.2. Profit obtained from food vending

About a third of the respondents (32.3%) chose to do food-vending business because it generates high income. The implication to this finding is that street food vending is a livelihood strategy of many urban poor people who mostly lack other means of earning income. Out of economic necessity urban dwellers opt street food vending so as to obtain income for buying food and paying bills. The findings are comparable to those of Milanzi (2011) where by 61.1% street food vendors opened the business in order to earn their own income. However the findings are dissimilar to those of

Aitken et al., (2015) in Ghana who reported that many vendors 80.4 % declared that they sell food because of the high demand of the food.

4.2.3. Experience and skills

Other vendors conduct SFV because of the experience and skills they have in food

vending. Business experience and skills include knowledge on market for cheap

cooking merchandise, seasonal changes and customer’s food preference.

Knowledge on customer’s food preference enables food vendors to operate

smoothly and increase the income they earn and out of lacking the experiences new

entrants are likely to earn small income compared to the experienced ones. Otoo et

al, (2011) assert that successful ventures are those, which have operated for a long

time because they are customers assured compared to those operated in a short time.

So the high income obtained by the experienced vendors is highly dependent to the

long-term relationship with customers.

Table 3: Reasons for street food vending (n=297)

Parameter Frequency Percentage

Income generation 96 32.3 Require small capital 150 50.3 Time management 18 6.1 Differentiation 13 4.4 Experience and skills 20 6.7

4.4. Income Generated from Street Food Vending

This part answer the second objective of the study that is determining the income generated from street food vending. From the survey the mean monthly income for food vendors was 470975 ± 334804 so the income ranges from 136,804 to 805779.

From the study findings it is fair to urge that street food vending reduces dependence and poverty in many urban poor household. The income and food obtained in the business improves the street food vendor’s lives, by helping in solving household problems and issues such as paying for hospital bills, buying food, clothes school requirements, bills and other immediate issues emerging in the household which would have been not met if the business were not available. Also with the income, different economic activities for family improvements are undertaken, such activities include buying assets such as plots, building houses, televisions, motorcycles, radio.

Njau and Komba (2014) revealed that more than 70% of food vendors link street food vending income to their improvement of living standard. The income earned by food vendors varies depending on capital investment, time spent in the business, and

the location for the business operation.

4.5 Street Food Vending Income and Vendor’s Household Welfare

This part answer the third objective for this study, which focused on determining the extent to which food vending income supports the vendor’s household. Street food vendors who use the income frequently to buy household requirements on daily basis or frequently were distributed as follows: 71.4% buy food, 68.7% pay water bills,

63.0% use the money for school requirements such as school fees, transport and snacks for their children, 49.8% use the income to pay electricity and lastly 45.8% use the income to pay rent. Some street food vendors use the income obtained through street food vending once in a while to meet household welfare. 36.7% pay electricity bills, 32.7% pay rent, and 29.7% use the money for paying water bills,

28.3% use the income for food, 26.6 % use the income to cover for their children school requirements.

The small number of street food vendors does not spend their income to buy household requirement at all but spend it on electricity bills 13.5%, 10.6% for paying school requirements, 2.0% do not use the money to pay for water and in food only

0.3% do not use the income. When asked the reasons, some vendors explain to own houses and assets, which does not require any payments. In the case of utilities such as water and electricity, some vendors have rented cheap living rooms without electricity popular known “chumba cha giza” so electricity is not part of their budget.

Some use free water from dams. For the case of school most of them had no

dependents who need such a service, some have completed their studies and others are either too young or too old to be in school.

However from this study many vendors 71.0% said the food vending business fulfilled their household needs while only 29.0% said it does not fulfill the household needs. Using cross tabulation the study found out that single and married vendors dominated the group of those whom the income is insuffient for the household needs.

For married vendors whom their income is insufficient said to receive contribution from their spouses and unmarried vendors said to receive some financial help from relatives, and from other business. For the vendors who lacked any support, they were forced to cut household budget to the extent that it suffices the household requirements.

The possible explanation to this findings is that street food vending enhances the survival of many poor household in urban and enable them to maintain basic living standard. Iyenda (2001) argues that the income earned by vendors is used to solve daily household problems. For street food vendors, household welfare needs such as food, rent, clothing, utilities, education, health, fuel and lighting consume high amount of household budget compared to personal needs (Muzzafar et al 2009;

International Food Policy Research Institute, 2000; Njaya, 2014).

Table 4: The extent to which street food vending support household (n=297)

Parameter Food School Electricit Rent Water y bill Yes, often 71.4% 63.0% 49.8% 45.8% 68.7% Yes, once in a while 28.3% 26.6% 36.7% 32.7% 29.7% Not at all .3% 10.6% 13.5% 21.5% 2.0%

4.5 Influence of Socio-Economic Characteristics of SFV to Household Welfare

Binary logistics regression model was 75.0% accurate in determining the influence of household socio-economic characteristic to the household welfare as shown in the table below. Five variables among eleven were observed to be statistically significant, meaning that the characteristics contributed 95 probability percent in ensuring availability of the welfare in the household. The model fit was statistically significant (X2 = 80.158, p = 0.000), this mean that the household welfare was predicted well using this model. Goodness of Fit was non-significant (X2 =

5.650.885, p = 0.686) implying that the model fits well with the data. Nagelkerke

Pseudo (R2) was 0.334, meaning that 33.4% of the variance in the dependent variable is explained by the independent variables present in the model.

Household size has highly positive significant impact to household welfare (p <

0.000). This means that household with many members are likely to have improved welfare as compared to households with few individuals. This is contrary to many studies which have established that household with few members are likely to have improved welfare than those with many individuals. For example, a report by NBS

(2019) shows that households with many members are more likely to be poor than

those with fewer members. On this study case, this finding was expected because, using cross-tabulation it was found that most households with improved welfare had additional income from other household members (P < 0.01). The implication of this finding is that the presence of individuals contributing income in the household improves the household welfare. Another implication is that many active members in the household can be the source of cheap labour supply in the food-vending venture.

That means instead of hiring other people, street food vendors use family labour to do vending activities such as cooking, washing dishes or serving food to customers.

This lowers operation cost and hence increases the profit.

Marital status of street food vendor showed positive significant relationship

(p <0.05) on their household welfare. This means that the households of married street food vendors are mostly likely to have improved welfare as compared to the households of the divorced or single vendors. As mentioned earlier most of the respondents (93.9%) were women. Out of these, almost half of them were married and just over a third were divorced. It was established that, households with an additional active member are likely to have improved welfare than those without.

Hence, it is most likely that many participants have a partner who contributes income in the household something which improves household’s welfare. Thus some vendors’ use the income earned to supplement household needs such as food, clothes, water and paying school fees for the children (Milanzi, 2011).

Table 5: Influence of socio-economic characteristics on street food vendors household welfare (N=297)

Variables B S.E. Wald P-Value. Exp(B) 95% C.I. for EXP(B) Lower Upper Respondent’s age 0.015 0.023 0.428 0.513 1.015 0.971 1.061 Marital status 0.291 0.141 4.239 0.040* 1.337 1.014 1.764 Household size 0.633 0.122 26.794 0.000*** 1.883 1.482 2.394 Level of education 0.167 0.079 4.507 0.034* 1.182 1.013 1.379 Main source of -0.326 0.647 0.254 0.614 0.722 0.203 2.567 income Motorcycle 0.447 1.122 0.159 0.690 1.564 0.173 14.109 ownership Premise ownership 0.371 0.173 4.602 0.032* 1.45 1.033 2.035 Duration in business 0.003 0.002 1.346 0.246 1.003 0.998 1.007 Main source of 0.449 0.169 7.046 0.008** 1.566 1.125 2.182 capital Gender -0.165 0.619 0.071 0.790 0.848 0.252 2.856 Other contributer 0.000 0.000 0.074 0.786 1 1 1 Model fit (X2 = 80.158, P-Value = 0.000); Goodness of Fit (X2 = 5.650, P = 0.686)

The level of education of the street food vendor had positive significant relationship

(p < 0.05) with the household welfare meaning that as the level of formal education of the street food vendor increases the welfare of their household improves. The possible explanation could be that formal education provides the vendor with knowledge, skills and experience, which ultimately enables the vendors to tap the opportunities available and hence increase their income. In addition, formal education provides the vendors with good communication skills, punctuality, problem solving skills and working effectively and efficiently. These findings are consistent with the study conducted by Adhikari (2017) in Bangladesh, which found that the households of street food vendor who had attained high level of formal

education had improved welfare.

This research found that the households of vendors who had rented their working premises were likely to have improved welfare than those who were doing business in open places (p < 0.05). The possible explanation is that vendors conducting their business in a rented permanent premise structure have a permanent address, which makes food vendors eligible in loans taking for boosting their business. Also permanent structures are secure for vendors operation and storage of their merchandise and facilities compared to temporary ones, which may be easily dismantled or washed during rainfall (Njau and Komba 2014).

Table 5 shows that the source of capital has positive significant relationship

(p < 0.001) with the household welfare. The households of vendors whose businesses depended on loan have improved welfare than those whose vendors source their capital through aid or own savings. Street food vendors who take loans to support their businesses have assets and permanent business structures, which can be used as a collateral. Also, vendors operating in a permanent structure are likely to establish long-lasting relationship with many customers something, which can increase customer base and hence increase their daily sales and income. Another explanation is that with loans SFV improve their business as through loans vendor can obtain food handling facilities storing, refrigerators, microwaves and oven which makes food processing and storing quick, secure and healthy. Tillerman (2012) is with the view that; the access to financial capital such as loans influences investment in livelihoods such as business enterprises.

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1. Summary

Urbanisation has increased the number of street food vendors. The growth is associated with the fact that urban dwellers work far from home and the changing role of women traditional role of housewife to self-employment. The cruciality of street food vending is in the provision of income, employment, convenience, nutritious, accessible, tasty and inexpensive kind of food to urban dwellers. Also it provides the market to agricultural products and income to other players in supply chain such as storeowners and transporters. There is recognisable effort by the government to support small enterprises through education and training, giving credit and also have attempted to reform policy and regulations.

Based on the literatures, it is observed that street food vending supports the livelihood of many households by providing food, income and employment.

Considering government initiatives to improve food vending and the considering crucial contribution of street food vending to urban economy this study aimed at understanding the role of street food vending to the vendor’s household welfare in

Ilala. Specifically to; assess factors influencing street food vendors to engage in vending, to determine the income generated from street food vending, to assess the extent to which the income earned through SFV support vendor’s household welfare and to assess the influence of socio-economic characteristics of street food vendors to the welfare of their households.

The study used cross sectional research design where by Ilala municipal and 297 food vendors were purposively selected and Simple random technique were employed to select six wards in the municipal; Gerezani, Upanga Magharibi,

Buguruni, Vingunguti, Kipawa and Segerea. The data was collected through questionnaires and observation. The data was compiled and analysed using SPSS where by simple descriptive statistics and logistics regression, were used in analysis.

The household was regarded to have welfare if the consumption was from 416,927 shillings per month and the household below the 416,927 shillings was considered to lack sufficient welfare (NBS, 2019).

The findings indicate that the mean age for street food vendors was 37.5 ±7.9, and the average household size of 4.17-±1.585 comparable to Tanzania urban average household size (NBS 2019). The mean years for school were 7.3±2.3 years showing the dominance of primary education for many vendors. Women dominated street food vending and the majority was married. The common mentioned reasons for food vending was small establishment capital, income generation, skills and experience in food vending and flexibility of the business. The average earning monthly was TZS 470,975 implying that street vending is the means for survival for many urban poor as this is above the national average of household consumption of

TZS 416,927. Five of eleven variables were positively significant to household welfare. The Household size was highly positive significant p ≤ 0.000, source of capital was positively significant p ≤ 0.001 and other variables marital status, education and premise ownership were positively significant p ≤ 0.005 to household welfare. The study recommends the government to improve street food vending

operation environment; by proper identification of location for conducting food vending and creating proper infrastructures in strategic areas, which could be cheaply rented.

5.2. Conclusion

Based on quantitative data analysis the result indicates that street food vending is crucial for the livelihood of urban poor as it provides the food, income and employment for vendors. On the other hand SFV provide reliable market for agricultural products and is a source of urban food supply. The findings showed that people engage in street food vending because it is easy to start and because it generates substantial income to meet their daily needs. This is in line with the structuralist perspective used in the study that, street food vending is a necessity driven activity conducted by the marginalized members of the society for their survival. Unemployed people, and women mostly divorced and single, dominate street food vending. These people out of lacking means of producing the income for their livelihood; they choose the activity which is in their capacity in sense of knowledge, skills, investment and ability.

The average SFVs monthly earning of TZS 470,975 shillings is above the monthly national average household consumption of TZS 416,927 implying that street food vending is improving welfare of many poor households in Ilala municipality.

Households whose vendors have attained high level of education are more likely to have improved welfare than those whose vendors have low level of formal education. So education is indispensable component in the improvement of vending

business as it imparts the person with the knowledge and skills to control the business environment. Also the vendor’s household welfare improves when the households have more members contributing an income. Therefore people are assets who contribute to the household development. Furthermore, vendors conducting their business in a permanent structure and who source their capital mainly through loan from financial institutions have improved welfare than their counterparts.

Therefore, permanent business structures provide SFV with secured business environment, permanent address that makes SFV eligible in taking loans for improvement of their food vending activities.

5.3. Recommendation

Considering that many people decides to street food vending because it requires small capital to start and that it generates a substantial profit to meet household needs. Local government and other stakeholders are recommended to provide appropriate business education to street food vendors so as to improve their productivity. Also, vendors should be encouraged to operate in permanent structures.

This softens their eligibility for loans acquisition from financial institutions and it also builds customer base. The local governments should design simple, permanent and affordable structures where street food vending can operate more comfortably.

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7.0 APPENDICES

Appendix 1: QUESTIONNAIRE GUIDE

Dear Respondent,

You are purposely selected to participate in the ongoing research about the role of street food vending to the vendors household. The aim of this research is to get the data and information on how the vending business your involved in is improving your household. The research is purely for academic purposes.

You have been selected to participate in the study because of your potential to give the required information. The information you give about your business and your household will be treated as confidential and will be used for academic purpose of this study only. Therefore, you are kindly requested to respond to all questions openly and trustfully.

Thank you.

Date: ______

Researcher/Enumerator initials: __ __

7.1: Questionnaire for individual respondents

Part I: Vendor’s profile

1. Do you use the income earned through SFV to support your household?

Yes/No……………………..

2. How old are you?......

3. What is your marital status?

a) Married b) single c) Divorced d) Widowed 4. What is your gender?

a) Male b) Female 5. How many people stay in your household? Adults’……… children ......

6. Number of formal education……………………

7. Is street food vending your main source of income?

a) Yes b) No 8. Apart from street food vending what is your other source(s) of income?......

9. Which of the following assets do you own?

a. Television b) Mobile phone c) Motorcycle d) Radio e. Refrigerator f) None Others specify………………………….

Part II: For objective number one

10. What made you decide to involve street food vending?

a) Income generation

b) Require small capital

c) Time management

d) Differentiation

e) Passion and skills

11. What kind of food are you selling?......

12.What is the ownership status of a business premise?

a) Free b) Rented 13. If you are renting this facility how much do you pay per month as rent? TZS….

14. Is structure of this facility permanent or temporary?......

15.For how long have you been doing this business? ......

16. What was the source of capital for this business?

a) Family money/aid

b) Own saving

c) Loan

17. How many employees do you have?......

18. What is the nature of your employees’ contract?

a) Full-time b) Part-time

19. How do you pay your employees?

a) Per day b) Per week c) Per month

19. How much do you pay each employee per month?......

Part III: For objective two

20. Where do you get raw materials/ merchandise?......

21. How much money is used to buy merchandise /raw materials per day?......

22. How much money do you earn per day TZS………….. ………………

Part IV: (For objective three)

23. Do you use the income earned from the street vending, to meet the following household’s expenses

Item Yes, Yes, once in a Not at all

Often while

Food

School fees/stationery

Electricity

House rent

Water bills

24. How much money on average do you spend on the following items?

Item Daily (TZS) Monthly (TZS)

Food

School requirements –fees

-Transport/ food

Electricity

House rent/ own house

Communication (airtime)

Water bills

Cooking fuel- gas

-Charcoal

-Kerosene

-Firewood

TV subscription

25. Does the income earned through SFV enable you to meet all the needs of your household? ? Yes/No……………………

26. If not, how do you finance other needs

a) Spouse

b) Children

c) Relatives

d) Other business

e) None

Part IV: (For objective four)

27. Apart from you is there any other person who contributes to your family household welfare?

a) Yes b) No 28. If the answer is yes, please state the amount he/ she contributes weekly? TZS…