Urban Entrepreneurship on the Fringe: Action Research on the Challenges of Street Vendors in Manila

Abstract

The presence of street vendors in metropolitan cities has been a cause for debate as vending provides these vendors with a source of livelihood but at the expense of regulatory oversight and urban order. Vending as a business emerged due to the lack of work opportunities available despite the growing demand. Vendors, however, remain crucial stakeholders of the informal economy as their existence fills a need for the minimum-income working class. As such, the objective of the study is to determine and understand the different factors that affect the business of street vendors and their coping mechanisms to these challenges and propose an action plan. This study is unique in its focus on the informal economy, specifically street vendors in Manila, an often overlooked yet vital part of urban livelihoods. By employing a qualitative approach, it delves deeply into the lived experiences of street vendors, uncovering the cultural, socioeconomic, and regulatory challenges they face in a highly urbanized Southeast Asian city. The study highlights human-centered narratives often missed in quantitative research and provides valuable insights into the dynamics between street vendors and government regulations. Its findings could influence inclusive policies that better support informal entrepreneurs, contributing to broader discussions on inclusive business practices. The results reveal that factors affecting street vendors relate to interpersonal dynamics, family dynamics and obligations, educational aspirations, financial vulnerability, market competition, operational challenges, supply chain dependency, health and labor, and enforcement of regulations. To manage these factors, vendors have adopted mechanisms to combat these issues through debt and financial management, operational adaptation, community assistance and support, adaptation to regulation, and emotional resilience. In the end, this research proposes a five-point agenda to support street vendors' adherence to social and legal norms, beginning with developing inclusive policies that formally recognize and regulate street vending, ensuring legal protection and designated vending zones. It then focuses on economic empowerment through improved access to financial services, microcredit, and financial literacy programs while introducing social security measures. Health and safety programs are implemented to enhance vendors' well-being, providing access to healthcare, ergonomic training, and sanitation standards. Governance improvements, anti-harassment initiatives, and transparent law enforcement to protect vendors from exploitation should also materialize. Finally, community engagement and public relations efforts aim to foster positive perceptions of street vendors, highlighting their contributions to the economy and encouraging cooperation with local businesses and authorities.