THE IMPACT OF INFORMAL TRADE ON THE LIVELIHOOD OF HOUSEHOLDS: IN THE CASE OF THREE SELECTED SUBCITIES IN ADDIS ABABA

Abstract

The informal sector is generally viewed as another sector outside the normal organized formal sector that provides employment and sustenance through engaging in a variety of activities, such as street trading, hawking, vulcanizing, local manufacturing and cobbling to mention but a few. This study aimed at identifying the impact of informal sector on the livelihood households engaged in informal sector. To achieve the objective of the study data were collected from150 randomly selected sample street vendors from three market centers. Questionnaire and interview were used as data collection instruments. Descriptive statistics was employed to analyze the data obtained through questionnaire. The study finding indicated that street vending is crucial in reducing unemployment and poverty in general. The researcher is recommended that micro-credit should be available to the vendors so that they can engage in micro-enterprises with high level of capital than they have.