Determinants of street vendors’ business performance: Evidence from developing economies

Abstract

Saving is essential for street vendors as it helps stabilize consumption and finance productive investments. The importance of researching the factors that influence saving behavior cannot be overstated. This study investigates the determinants of saving behavior among street vendors using cross-sectional survey data from 302 randomly selected vendors in Harar, Dire Dawa, and the towns of Hirna, Qobo, and Jarso. For data analysis, descriptive statistics and the binary logit model were used. The study’s findings revealed that level of education, age of street vendors, number of dependents, and vending experience had a positive and significant impact on their saving behavior. However, revenue per day and health conditions are found to have a negative but insignificant influence on saving behavior in the study area. The study recommended that the relevant body give full consideration to street vendors to increase their level of savings by offering short-term training and raising awareness to improve their living standards and bridge the investment-savings gap. This research provides policymakers, the government, and stakeholders with valuable insights into the determinants of saving behavior. Despite existing studies, this study adds to the limited knowledge by examining the effects of vending experience and health conditions on street vendors’ saving behavior.

Keywords: Determinants, Eastern Ethiopia Region, Street Vending, Saving Behavior

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: D14, E21, G53

Received: 01.05.2023
Revised: 16.07.2024; 17.10.2024
Accepted: 03.11.2025
Published online: 05.11.2025

How to cite this paper: Banke, N. K. (2025). Determinants of street vendors’ business performance: Evidence from developing economies. Responsible Business Review, 1(2), 8–16. https://doi.org/10.22495/rbrv1i2p1