Title: Understanding the Entrepreneurial Mindset of Street Vendors: A Qualitative Study of Iringa Municipal Informal Economy.
Authors: Yohana Tweve, Lupyana Samwel, Joseph Ndawi, Jailos Mtindya.
Volume: 9
Issue: 9
Pages: 172-180
Publication Date: 2025/09/28
Abstract:
The study aimed to explore the entrepreneurial mindset of street vendors operating within Iringa Municipal's informal economy, focusing on risk taking, innovation, resilience, customer orientation, and motivation. Despite the prevalence of street vending as a livelihood strategy in Tanzania, limited research had examined the cognitive and behavioral traits that reinforced vendors' business practices. A mixed-methods approach was employed, combining qualitative and supportive quantitative data. Data were collected from 218 street vendors using semi structured interviews, focus group discussions, structured questionnaires, and observation. Qualitative data were analyzed thematically, while quantitative data were summarized using descriptive statistics. The findings revealed that vendors exhibited varying degrees of risk taking, with many investing personal savings while others adopted cautious strategies. Innovation was evident in product diversification and strategic relocation of selling points. Resilience was a key trait, as vendors persisted despite frequent evictions and market fluctuations. Customer orientation was central, with flexible pricing, credit provision, and relationship building enhancing business sustainability. Motivation ranged from survival driven to opportunity driven entrepreneurship, reflecting both necessity and aspirational drivers. Limitations included respondents' mobility, reluctance to participate, and the study's focus on a single municipality, limiting generalizability. Practically, the study shows the need for supportive policies, capacity building programs, and access to microfinance to strengthen informal entrepreneurship. Socially, it emphasized the role of street vendors in urban livelihoods, poverty reduction, and household welfare. The originality of the study lies in its focus on the entrepreneurial mindset of informal actors in Tanzania, offering new insights into cognitive and behavioral drivers in the informal economy and informing interventions that promote sustainable urban entrepreneurship.