Access to Finance - Street Vendors' Dilemma in Two Towns of South India

Street Vendors and hawkers constitute entrepreneurial efforts at a micro level in the informal sector. This study attempts to explore the access to sources of finance in the informal sector of street vending in the two towns of South India, Tirunelveli and Nagercoil. A sample of 50 vendors in Tirunelveli and Nagercoil cities was analysed with respect to their initial capital requirements, sources of finance and daily working capital requirements. Concurrently the study also sought to identify the street vendors, awareness of licensing requirement, existence of micro finance opportunities and access to the same. Findings showed that a majority of the street vendors utilized their daily earnings. None of them had any awareness of micro finance and the opportunities arising thereof. The study is significant in terms of revealing the financial needs of the informal sector in tier three cities in South India. The study recommends awareness programs or drives targeted at these informal entrepreneurs to sustain their micro entrepreneurial efforts.