Livelihood in the Urban Informal Sector: A Study of Street Vendors of Dhaka City

Abstract

Though Dhaka city has huge population, it lacks educated and qualified people who are able to work in the formal-sector jobs. On the one hand, the job opportunities in the formal sector are limited and on the other hand, informal sector offers livelihood opportunity to the poor people. Education and huge capital are not required to start a business in the informal sector. So less educated and less-qualified people are easily attracted by informal-sector activities. Many people work as street vendors in Dhaka city and earn their livelihood. An informal-sector activity, like street vending is seen as a cause of rural–urban migration, because it lowers the risk of the individuals being unemployed once they move to the city. This study shows that most of the street vendors of Dhaka city belonged to rural areas and most of them were unemployed. The income of others who were employed in rural areas was not high. So they migrated to Dhaka city and started street vending as their livelihood strategy. After that their conditions have been changed and currently they are meeting their basic needs partially or fully. They are self-employed now. Most of them have monthly savings and they are satisfied with their business that is why they want to continue their business. Though street vending is the source of livelihood, the vendors have to face different types of problems to run their business smoothly. The government can facilitate the transition of informal-sector business to the formal-sector business instead of encouraging or suppressing informal activities. The government should think deeply about the informal sector since it provides livelihood to a great number of people of the country.