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An investigation of the socio-economic implications of street trading in Aba North Local Government Area, Abia State

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  • NGN 5000

Background of the study
Street trading is a widespread economic activity that plays a significant role in the livelihoods of many residents in Aba North. This informal sector is often a primary source of income for those excluded from formal employment and is deeply embedded in the socio-economic fabric of urban communities. In Aba North, street trading not only contributes to local economic growth but also provides an accessible means of entrepreneurship for individuals with limited capital. However, the unregulated nature of street trading also presents challenges, including issues of public safety, sanitation, and urban congestion (Obi, 2023). Economic theories suggest that while street trading promotes economic inclusivity and grassroots innovation, it may also foster conditions that lead to economic disparity and social tensions when not adequately supported by urban policies (Chukwu, 2024). The dynamic environment of street trading is characterized by fluctuating market conditions, competition, and the constant need for adaptation to changing consumer demands. Moreover, the socio-economic benefits of street trading are often offset by challenges related to the informal status of traders, who may lack access to credit facilities and legal protections. Recent research has underscored the dual nature of street trading, highlighting both its potential for poverty alleviation and the risks associated with unregulated economic activities (Ifeoma, 2025). Understanding these socio-economic implications is crucial for developing policies that can harness the benefits of street trading while mitigating its adverse effects on urban order and public health.

Statement of the problem
Street trading in Aba North is marked by both economic opportunity and significant socio-economic challenges. While it provides a critical livelihood for many, the informal nature of these activities has led to issues such as irregular income, lack of social security, and disputes over public space usage (Obi, 2023). The absence of regulatory frameworks results in inconsistent market practices, exposing traders to exploitation and operational risks. Additionally, unregulated street trading has contributed to urban congestion, sanitation problems, and occasional conflicts with local authorities, thereby undermining the broader objectives of urban planning and public safety (Chukwu, 2024). Despite its importance to the local economy, there is limited empirical research exploring the full range of socio-economic impacts associated with street trading in Aba North. This gap in understanding hinders the formulation of effective policies that can enhance the benefits of street trading while addressing its inherent challenges. The persistence of these issues calls for a detailed investigation into how street trading affects socio-economic stability and what measures might be implemented to support sustainable informal economic activities (Ifeoma, 2025).

Objectives of the study

  • To assess the socio-economic benefits of street trading in Aba North.

  • To identify the challenges and risks associated with unregulated street trading.

  • To propose policy recommendations that enhance the sustainability and safety of street trading.

Research questions

  • What are the key socio-economic benefits of street trading in Aba North?

  • What challenges do street traders face due to the informal nature of their operations?

  • What policy measures can improve the regulation and support of street trading?

Research Hypotheses

  • H1: Street trading significantly contributes to the local economy in Aba North.

  • H2: The unregulated nature of street trading exacerbates socio-economic challenges for traders.

  • H3: Implementation of supportive policies can enhance the sustainability of street trading.

Significance of the study
This study provides insights into the complex socio-economic role of street trading in Aba North. By elucidating both benefits and challenges, the research aids policymakers in designing interventions that support informal traders while addressing urban management issues, thereby contributing to a balanced urban economy (Obi, 2023; Chukwu, 2024).

Scope and limitations of the study
The study is limited to investigating the socio-economic implications of street trading within Aba North Local Government Area. It does not extend to formal retail sectors or other regions.

Definitions of terms

  • Street Trading: The informal buying and selling of goods in public spaces.

  • Socio-economic Implications: The social and economic consequences that result from a particular activity.

  • Informal Sector: Economic activities that are not regulated by formal legal and administrative frameworks.


 





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