STREET VENDING IN HAWASA CITY: CAUSES, CONSEQUENCES AND REQUIRED ADMINISTRATIVE INTERVENTIONS

Abstract

Background: Street vending is often perceived as an underground economic activity that disrupts the formal economy. In Hawasa city, there has been a significant increase in the number of street vendors. While street vending contributes positively to employment creation, income generation, and poverty reduction, it also has negative impacts, such as reducing government tax revenue and obstructing pedestrian movement. This study aims to investigate the causes and consequences of street vending in Hawasa city and to propose necessary administrative interventions.

Method: A mixed research approach was employed to align with the objectives of the study. The target population included all street vendors operating in Hawasa city; however, the total number of vendors was unknown. Therefore, the sample size was determined using a formula for unknown populations, resulting in 254 samples. Both probability and non-probability sampling techniques were used to select participants. Data collection methods included key informant interviews, focus group discussions, questionnaires, individual interviews, and personal observations. The collected data were analyzed using descriptive and inferential statistical methods.

Result: The findings reveal that street vending plays a vital role in creating employment opportunities, generating income, and alleviating poverty in Hawasa city. However, it also poses challenges, such as reducing government tax revenue and hindering pedestrian movement. These contrasting effects highlight the complexity of street vending as both a solution and a problem for urban economic and social systems.

Conclusion: Street vending in Hawasa city has both positive and negative implications. While it substantially contributes to employment and poverty reduction, it also creates challenges for urban governance and economic management. To address these issues, targeted administrative interventions are required to balance the benefits of street vending with the need to mitigate its adverse effects.