Formalization as an Important Movement Post-Covid: Factors Supporting the Transition of Street Food Vendors into the Formal Economy in Egypt

Authors

Noha A. Alaa El Dine, School of Business Administration, Nile University, Egypt.Follow
Zeina Ismail, School of Business Administration, Nile University, Egypt.Follow
Nada Mohamed, School of Business Administration, Nile University, Egypt.Follow
Menatalla Kaoud, School of Business Administration, Nile University, Egypt.Follow

Abstract

Informal economy is one of the most important issues in Egypt and the whole world. According to the World Economics (2022), the size of informal economy in Egypt is estimated to be 34.8% which represents nearly $ 646 billion at GDP (PPP) levels. This paper examines the important movement of formalization especially after the pandemic and explores the factors supporting the transition of street food vendors, specifically coffee truck vendors, into the formal economy in Egypt. Exploratory survey was conducted with 100 vendors across Greater Cairo. Four hypotheses were explored to stand on the factors supporting the formalization and results showed positive effect of taxes, governments laws and regulations and reduction of legal procedures, and social security availability on coffee truck vendors’ transition into the formal economy in Egypt. Whereas access to finance got the least importance. Research also shed light on the importance of government extensive role to offer and promote different business models of street vendors, to create more awareness about facilitation programs and to secure the basic social needs to this underprivileged segment.

Recommended Citation

A. Alaa El Dine, Noha; Ismail, Zeina; Mohamed, Nada; and Kaoud, Menatalla (2022) "Formalization as an Important Movement Post-Covid: Factors Supporting the Transition of Street Food Vendors into the Formal Economy in Egypt," The World Research of Political Science Journal: Vol. 5: Iss. 2, Article 7.
Available at: https://digitalcommons.aaru.edu.jo/wrpsj/vol5/iss2/7