LIVELIHOOD ANALYSIS FOR INFORMAL BUSINESSES: A TOOL TOWARDS COMMUNITY DEVELOPMENT INTERVENTION

Abstract

The informal business sector is a marginalized sector that are often left behind in the policy making as a result of their informality nature. However, the government regard the informal sector as a valuable partner in local development since they are considered as unplanned driver of economic growth.  Livelihood analysis is used as a tool to understand the weaknesses of their assets, which served as basis for community development intervention.  The five livelihood assets include human, social, natural, physical and financial.  Due to lack of formal education, the informal food businesses such as street vendors are not capacitated in terms of entrepreneurial skills.  The informal nature of the sector is in itself a limiting factor in accessing  a wide network of suppliers, industry organizations, market and even livelihood assistance.  The absence of financial security has led them to acquire multitude of loans.  One of the major constraints in their sector is the lack of a public space that is open for informal food sellers.  Since most of the informal business owners rely their stocks from a larger business unit, they are prone to disturbances that affect the supply chain of these groups.  With a modest net income gained on a daily basis and considered above the subsistence level, the informal food businesses should have expanded and graduated from its informal status.  The long years of period in the sector proved to show that they lack entrepreneurial skills such as innovativeness, creativity and visionary skills of an entrepreneur.