Key determinants of street vendor sales in Dhaka: infrastructure and socioeconomic factors

Nurshad Yesmin and Beatriz Calzada Olvera

Journal of Entrepreneurship and Public Policy, 2024, vol. 14, issue 2, 187-206

Abstract: Purpose - This research identifies the individual socioeconomic and urban infrastructure attributes that explain the sales performance of informal street vendors in Dhaka, Bangladesh, shedding light on areas where public intervention could enhance informal vendors’ entrepreneurial activities. Design/methodology/approach - The study employs a quantitative methodology, focusing on two street vending areas in Dhaka: New Market Area and Mirpur-1. Primary data (n = 243) were randomly collected from vendors in these areas. The importance of various attributes was estimated using non-parametric, non-linear methods (random forests and geographical random forests). These results were compared with those obtained from linear multiple regression and Lasso regression models. Findings - The study shows that having a designated vending spot is the most important attribute associated with higher sales, confirming the critical role of secure vending locations in urban planning policy. Other significant factors include the width of the sidewalk and the level of odors, indicating the role of urban infrastructure on sales performance. Key individual socioeconomic factors include having a bank account and working experience. The initial economic situation, measured by the log of initial capital, also plays a significant role, especially when accounting for spatial heterogeneity. Originality/value - This research explores the relationship between individual socioeconomic characteristics, urban infrastructure and street vendors' sales performance using advanced machine learning models. Our findings underscore the significance of adequate street vending infrastructure and access to banking services, highlighting critical areas for public policy intervention to support this vital entrepreneurial activity.

Keywords: Entrepreneurial activity; Street vending; Sales performance; Infrastructure attributes; Socioeconomic factors (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jepppp:jepp-12-2023-0135

DOI: 10.1108/JEPP-12-2023-0135

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