Demographic and Social-Economic Descriptors of Formalisation of Food Vending Business in Dar es Salaam, Tanzania.

Patrick, Swai (2022) Demographic and Social-Economic Descriptors of Formalisation of Food Vending Business in Dar es Salaam, Tanzania. Masters thesis, The Open University of Tanzania.

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Abstract

Food vending supports the livelihoods of many households as they depend on this business for sustenance. Recent studies uncovered overlapping empirical findings regarding factors that hinder food vending business formalization. To address this puzzle, this study determined the effect of demographic variables such as age, sex, marital status, and household size on formalization of the foods vending business in Dar es salaam, Tanzania. It also examined the social factors such as education, peer pressure, ethnicity and experience on the formalisation of food vending, in addition, economic factors such as income, tax fees, registration fees, licence fees, capital, and networking on the formalisation of food vending were studied. Lastly it determined whether prior-exposure such as attending seminars, workshop and conference to business education is associated with formalising food vending in the study area. Data were collected from 210 respondents through semi-structured questionnaire and through interview with five (5) key informants. Descriptive statistics and binary logistic regression were employed in data analysis. The results confirm the hypothesis that age, sex, marital status, education level, experience, household size, income, working capital, peer pressure were the key descriptors of formalising of business at a p< 0.05 which we reject null hypothesis. The study concluded that Formalisation of business can be stimulated by providing education, improving access to removing cumbersome pre-condition for business formalization. The study recommends that programmes that encourage food vendors to participate in formalising business should be in place in order to overcome the income bias and micro-level interventions should deliver financial and business support services to the food vendors and small business holder to reduce informal operations. Keywords: Business formalization, socio-economic factors, demographic factors, food vending

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