Wednesday, 20 July 2016

SOCIAL ENTERPRISE DEVELOPMENT: A SUSTAINABLE SOLUTION TO STREET TRADING IN LAGOS STATE, NOT A BAN.



Street trading and hawking is a social problem requiring socially innovative and financially sustainable solutions. And these can mostly be provided by social enterprises. Bans on street trading are not sustainable solutions to such an entrenched social problem. Many attempts have been made by various governments and administrations to ban street trading and hawking and none have recorded any sustainable success. No amount of penalties in the form of fines and/or jail terms will deter street traders and hawkers in Nigeria and Lagos State in particular.

The recent ban on street trading and hawking by the Lagos State government has been generating a lot of mixed reactions from the generality of the people. The media, both print and electronic, are awash with reports from different parts of the state concerning the feelings of people on the ban. While some are totally against the ban, some are in support of it. 

Street trading and hawking is an informal form of direct marketing mostly common among petty traders who buy and sell consumable products along major streets and highways in big cities and towns across the country. The financial cost of starting up a street trading and hawking business is relatively small; it does not require any formal education; there are no strict regulations guiding its formation and operation; and it can be started in any day, and in anywhere, especially where there is a large traffic of persons, and vehicular movement is relatively very slow. Street trading and hawking is a common business activity in Nigeria and it is spread across major towns and cities of the country.

Recently, states like Kano, Kaduna and Abuja, the Federal Capital of Nigeria, have enacted laws prohibiting street trading and hawking in various locations of the states. Lagos State is not the first to approach this intractable problem with a law. But how sustainable is the use of these laws and their penalties to solve this problem? Such laws are quick-fixes and usually unsustainable. They are ineffective and inefficient in addressing such a pressing social challenge because the root causes of the problem are usually left unattended to. Addressing the symptoms of a problem will never solve it.

Why do people indulge in street trading and hawking? Here are the common factors that encourage and support street trading and hawking among Nigerians:

1.      General unemployment especially among the youth.
2.      High cost of living in urban areas.
3.      Poor quality of education.
4.      Poor infrastructural development especially in rural areas.
5.      Bad and inadequate road networks.
6.      Inadequate economic opportunities.
7.      Poor and inconsistent government policies.
8.      Others.

And you will agree with me that unless these conditions are removed, the challenge of street trading and hawking will persist. But, how can such conditions be removed?

Social enterprise development offers sustainable alternative solutions to any legislation prohibiting street trading and hawking in Lagos and Nigeria at large.

JOB CREATION
Social enterprise development has been identified as one form of social innovations capable of generating jobs and employment pathways for those most disadvantaged in the labour market. Intermediate labour market programs based on social enterprise models have been proven to be successful at creating decent and sustainable jobs.

LOW COST OF LIVING
Apart from the creation of jobs and employment for those most disadvantaged, social enterprises provide underserved members of the public access to high quality and affordable basic needs of food, clothing, housing, water, electricity, healthcare, etc.

QUALITY AND AFFORDABLE EDUCATION
Social enterprises in the education sector are using creative, innovative and financially sustainable means to provide the general public access to quality and affordable pre-nursery, nursery, primary, secondary and tertiary education. The Open University program is one innovative way social enterprises have been able to make education available, accessible and affordable to the general public.

SUSTAINABLE RURAL COMMUNITY ECONOMIC DEVELOPMENT
The reinvigoration and revitalization of rural economies have been made possible by social enterprises across the globe. Trading for social purpose and reinvesting surpluses in communities have made social enterprises strategic in the socio-economic transformation of communities especially those underserved.

INCREASE ECONOMIC OPPORTUNITIES
Social enterprises create opportunities for people to participate gainfully in their communities. They open up economic opportunities by introducing innovations, using new technologies and exploring and exploiting new markets in communities underserved.

CONSISTENT GOVERNMENT POLICIES
Social entrepreneurs collaborate with governments to design and implement policies that will improve the living standard of the people and sustain the environment. A socially entrepreneurial government makes policies for the ultimate good of society where it is easier for everyone to do business and secure decent and sustainable employment.

I would like to conclude by advising the government of Lagos State to develop its social enterprise sector which in turn will provide the required social innovations and initiatives to tackle the problem of street trading and hawking in the state. An Office of the Governor on Social Enterprise Development should be set up to lead the development of the Lagos State social enterprise sector. This is a better and more sustainable solution to the menace of street trading and hawking in the state, and country as a whole, and not a ban.

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