CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
The function of street trading in the societal development of many nations cannot be over-emphasized. Whether neglected or encouraged, their importance cannot effectively be submerged since every individual can easily reach their needs through this street trading.
Oredo Local Government Area is one of the three local Government Areas that make up the state capital Benin City with its administrative headquarter at king square in the City centre. The people there are mostly sole proprietors small scale traders and also street traders and as such could not afford large scale enterprise; hence they embrace little that can yield income for them to cater for themselves and families. Some examples of the trades done on street are:
1) Sales of recharge cards
2) Mini provision kiosks
3) Retail shops
4) Selling of corn
5) Roasting of plantain (i.e. bole). Etc.
Street trading according to Uwoyo (1995) is a trade done on a public road in city, town or village. It is as a result of low financial status of the people with the inability of creating lager business enterprises that can yield good income street trading in Oredo Local Government Areas is mostly caused by poverty. For example; a commercial motorcyclist popularly known as okada riders, with a family if 6 (six) children and whose wife finds it difficult to use the money gotten from his okada business to cater for his family will set up a little sole proprietorship business or give his wife little money to open any street trade to help the family. However in another view by Nwoyo (2005), street trading can also be caused by lack of education, high birth rate, frustration, etc.
Okeyo (1998) gave the following as the main criteria used to describe street trading:
1) It is usually sited on streets
2) It is usually a sole proprietorship business
3) Financial strength
4) Scale of value
5) Relative size and initial capital outlay
Basically, as a manifestation of various attempts by the developing world to chart the course of new economic growth and development, it is also vital to note the prospects; Ogoke (2005) explained that in Nigeria, street trading constitutes the largest proportion of societal trade sector.
STATEMENT OF PROBLEM
This research will focus attention on the problems. Causes and effects of street trading in Oredo Local Government Area, one of the major causes of street trading is financing, which leads to inadequate capital and inadequate facilities for sustaining the development and as well as growth of these retail shops.
In Oredo Local Government Area, the system of financing local business sited on streets is usually difficult for owners because what they sometimes not enough for them and their families to manage let alone having a reservoir for savings.
This research work seeks to evaluate the causes and effects of street trading and how to eliminate it. Hence the need to the different problems facing them and how the problem could be minimized or even eradicated.
Also looking at the problems properly, it is also good and better to state first these research questions?
a) What is the respondent’s major source of labour?
b) How is the respondents business financed?
c) What is the respondents’ level of education?
d) Does the respondent engage in street trading?
e) Why does the respondent engage in street trading?
f) Has the respondent encountered any problem in the course of street trading?
PURPOSE OF THE STUDY
The purpose of the study is to check the causes and effects of street trading in Oredo Local Government Area and how to eliminate as well as the problems associated with it.
SCOPE OF THE STUDY
The scope means area covered by the project. The scope of this study is narrowed down to cover the entire Oredo Local Government Area of Edo State in this present year.
SIGNIFICANCE OF THE STUDY
The major significance of this study is to proffer solution to the menace of street trading in Oredo Local Government Area of Edo State. it is hoped that the study will help in minimizing problems associated with street trading and will increase the body of knowledge on the operation of street trading which is in form of sole Proprietorship business, it is also helped that the study will be useful to economic planners, sole proprietors, street traders and decision makers.
RESEARCH HYPOTHESIS
In order to find solution to the research problems these research hypothesis have been formulated.
1) Street trading obstructs free flow of human and vehicular traffic, leading to accidents and other hazard.
2) Ignorant and curious traders should be educated on street trading to assert the effects and harm it cause on children, parents and also the environment.
3) Inadequate capital hinder the growth of small scale industries, sole proprietorship business and causes street trading in Oredo Local Government Area of Edo State
4) Funds should be loaned to street traders to enable them start up a palatable business so as to reduce street trading as well as poverty.
5) Street trading leads to environmental hazards and disorder causing land population in various areas situated
6) Street trading is prevalent in Oredo Local Government Area as a result of insufficient skilled personnel.
7) Lack of knowledge is these street traders on how to create more strategies to run their business.
8) In Oredo Local Government Area of Edo State, street trading can be eradicated by providing assistance to the poor and needy to help the fight against poverty.
