Hadis, Woldie, Sebsib. 2015. ‘Women in The Informal Sector: Retrospect’s And Socioeconomic Re-Sponse in Dessie Town, Ethiopia: The Case of Parallel Trading’. International Journal of Developing Societies 4 (2): 85–94
The author started his writing by defining the informal sector in comparison with the formal sector. Accordingly, he made a reference to the ILO which indicated the informal sector as ‘activities in peripheral segments of the economy’ (ILO 2002a). Moreover, the informality of the sector is being viewed with easy entry into the market for new enterprises, indigenous resources as a source of production, small scale and lower productivity, high labor consumption, informal education and skill reliance, unregulated market, and minimal support from the government. According to the Central Statistical Agency of Ethiopia (CSA, 1997), the informal sector is sectors that are primarily engaged in market production, not formally registered, and have less than ten members.
According to the author, in Ethiopia the number of women engaging in the informal sector is growing at an alarming rate due to the extensive migration rate from rural to urban part of the country. The migrants at the beginning will search for a formal job but most of them find themselves jobless and join the informal sector as a last resort. Hence it can be argued that the informal sector facilitates the interest of job-seeking communities who couldn’t otherwise find income earning activities.
A large number of women in Ethiopia are engaging in the informal sector of self-employment, and most of these activities include street vending, retail trade, and sell of local drinks. Accordingly, the informal sector plays a great role in enabling the majority of women in Ethiopia to secure self-employment. On monthly average women engaging in the informal sector earn 720 ETB which facilitates their capital accumulation and investment. It thereby facilitates not only women’s economic empowerment but also serves as a basis of survival for the livelihood of their family members.
The author had used a mixed sequential research method both for the qualitative and quantitative data. For primary data collection the author used random sampling techniques and 206 traders were selected purposively to participate in the study. The author used SPSS and explanatory sequential analysis for data analysis.
The author found that the majority of women engaged in the informal sector are those between the age of 19-34, and only 8% of the study participants are below the age of 18 engaging in the informal income generating activity at the expense of their education. Regarding marital status of women participating in the study, the author indicated that the informal sector is mostly accessed by widowed, divorced and unmarried women when compared with married women. As to the educational status of the women, the author found that the informal sector is mostly accessed and preferred by women with low educational background. As the women’s educational layer gets up their option for employment is also increased and the informal sector becomes less preferred. Women with high family size tended to have more engagement in the informal sector when compared with women with lower family sizes.
However, women engaging in the informal sector are facing various problems including lack of conducive working place, lack of access to formal financial service/credit, limited supply and low demand for their products. This in turn negatively affected women’s engagement in the informal sector and minimized their prospects for business expansion.