Thriving Amidst Informality - The Development of Vendor Business Schools

Abstract

Rapid urbanization has brought forth numerous challenges, highlighting the utmost importance of addressing issues such as unemployment, poverty, and food insecurity. Recognizing the significance of informal markets in this context, the Resilient Cities Initiative endeavors to foster innovation in the effective management of urban food systems. As a part of this initiative, this study investigated the business challenges faced by small food vendors in Quezon City and Pasay, focusing on enhancing decent work opportunities through the development of Vendor Business Schools (VBS) in Metropolitan Manila. Through a comprehensive analysis, topics of interest and relevance to the vendors were identified, and practical aspects to foster alignment with local authorities were explored. Based on data collected from sixteen focus group discussions, the results indicate the primary business challenges faced by vendors, including income instability, the adverse impact of weather conditions, and a lack of business knowledge. Besides, the findings demonstrate the intricate interplay between these challenges and the socio-political field surrounding them, where challenges are greatly influenced by gender dynamics and city-specific operations. Drawing upon Practice Theory, this study emphasizes the importance of addressing the unique habitus and capital of different vendors within the inclusive development of a capacity building program. It is proposed to align the VBS curriculum closely with the entrepreneurial context of its beneficiaries and foster a supportive political framework to enhance long-term effectiveness. With this, new insights for more inclusive and tailored development programs are provided, highlighting the role of a healthy transition to the formal sector in addressing the challenges of rapid urbanization.