The Influence on Perception of Street Vendors on Profitability of Products They Sell: A Case of Dar es Salaam and Coast Regions of Tanzania

Abstract

The purpose of the study was to investigate on the nexus between perception of street vendors on the profitability of products they sell. The specific objective of the study was to determine the perception of street vendors in relation with the types of products they sell; identify the perception of street vendors in products they sell in relation with the capital they employ and the perception of street vendors in products they sell in relation with the demand of products, respectively. Data were collected around bus stops along the Morogoro Road, in ten (10) different localities from Kimara bus stand (15 km) to Mlandizi which is 65 kilometers from Dar es salaam city. A sample of 100 respondents were interviewed i.e 10 from each Centre, and were processed by using the Statistical Package for Social Sciences (SPSS). Descriptive statistics were deployed in the analysis. Field data indicated that Street vendors perceived that customers prefer mostly on purchasing consumers products especially fruits, soft drinks, foods, rather than industrial products. There was a positive perception on the street vending business with the market demand. It was noted also positive perception of street vending business with the capital employed. Theoretically the study has validated the TRA theory by integrating it with the dynamic theory of strategy in assessing the studied objectives, in studying the in the context of developing countries, particularly in Tanzania. Empirically, the study assisted in improving of the street vending business growth by proposing better methods and techniques on improving profitability, for a better micro business performance in Tanzania.The study proposes that Government and Business stakeholders should enhance street vendors capacities, through promotion and improvement of entrepreneurial and business skills of the street vendors in Tanzania.