Social capital as a major factor of street vendors sustainability: An insight for public regulation policy in emerging economy

Abstract

Street vendors contribute to the socio-economic development of society. However, most street vendors operate illegally, so the growth of the informal sector can hamper economic growth in general. This study aims to determine the most dominant factor of several sustainable livelihoods factors that have the most influence on the sustainability of the livelihoods of street vendors as explained in the sustainable livelihoods framework. This study uses a quantitative approach with five independent variables: human capital, physical capital, social capital, financial capital, and natural capital for livelihood sustainability. The sample in this study was 100 street vendors located in the busiest corridor in the Cirebon region of Indonesia. Using chi-square analysis and logistic regression, the results show that social capital has the most significant influence on the sustainability of street vendors. It implies that street vendors with high social capital have 30 times more opportunities to support livelihood sustainability than those without social capital. This study also confirms that social capital is essential in realizing sustainable livelihoods, followed by human and physical capital. The results of this study can be used as a reference in the development of public policies related to the development of micro-enterprises.