Building a Supportive Entrepreneurial Ecosystem for Street Vending: Key Requirements for Growth and Sustainability in Dodoma, Tanzania

Abstract

Street vending is one of the oldest forms of informal business and plays a critical role in poverty reduction by creating employment opportunities, particularly for women and youth who are excluded from the formal sector due to limited education, capital constraints, and socio-economic barriers. Despite its importance, the entrepreneurial ecosystem supporting street vendors is often overlooked by governments and formal business actors. This study aims to examine and understand the essential entrepreneurial ecosystem required to support street traders in Tanzania. The study employed a mixed-methods approach, collecting both qualitative and quantitative data from street vendors, municipal officers, and business experts to assess the current entrepreneurial environment and identify areas requiring improvement. The findings indicate that street vendors operating in the informal sector require significantly more support than has been highlighted in previous studies, which largely focus on formal businesses. Key needs identified include designated business locations, access to municipal services, formal recognition, business permits, protection from harassment, access to financial services such as loans, and entrepreneurial training. The study focuses on street vendors in Tanzania, which may limit the generalizability of the findings to other countries with different regulatory and socio-economic contexts. Policymakers and municipal authorities should adopt a more positive and inclusive approach toward street vendors by fostering a supportive entrepreneurial ecosystem. Although developing such an ecosystem may require initial public investment, the long-term benefits—such as enhanced livelihoods and increased contributions to national development—are likely to outweigh the associated costs.