Catholic University of Santo Toribio de Mogrovejo FACULTY OF BUSINESS AND SYSTEM

S.
RESEARCH PROJECT. "FACTORS AFFECTING THE INFORMAL TRADE OF CLOTHING ON THE MARKE
T MODEL OF THE CITY OF CHICLAYO." September to December 2006.
CHICLAYO - PERU.
I. OVERVIEW
1.1.
TITLE OF RESEARCH "Factors influencing informal trade of clothing in the market
model of the city of Chiclayo.
1.2. INVESTIGATOR Edquén Bustamante, Juan José 1.3. Applied Research Line 1.4. T
YPE OF RESEARCH Descriptive - Analytical - transversal. 1.5. PLACE OF EXECUTION
OF THE PROJECT: Chiclayo - Lambayeque. 1.6. ESTIMATED PROJECT DURATION 3 Months
1.6.1. START DATE September 25, 2006 1.6.2. End Date December 2006 1.7. TOTAL VA
LUE OF PROJECT S / 104.00
II. RESEARCH PLAN SUMMARY The present work aims to provide an overview of the st
atus of Lambayeque, highlighting the most important economic and social aspects
of the crisis in that city. This set of situations have been accelerating in rec
ent years, affecting the entire national space wherever you look, analyze and st
udy. Thus, my basic goal is focused on informing and clarifying what is "informa
l trade" (street vending, subsistence microenterprises, evasion, underemployment
, etc.) from the various causes of the country's economy. In different countries
use different names to refer to this type of commerce: economy, underground eco
nomy, parallel economy, or simply Black Market. Keywords Informal, informal trad
e, trader, market, marketing. 3. PROBLEM SITUATION 3.1. Problem Formulation and
Approach. The informal economy, appeared to be a phenomenon unique to developing
countries or some advanced countries, but today, the globalization of the econo
my has also caught the developed world in the practice of producing wealth and j
obs outside the framework legal, as discussed below. In most territories, the in
formal trade is still a significant problem, and in some Latin American countrie
s increased the percentage of informal traders. For many, informal trade is one
which is active in public or in unauthorized places. Informal trade is what all
those commercial activities which, while not criminal, nor
are fully regulated, registered and / or controlled by the state that develops i
n the same spaces in which other similar activities do receive control. Despite
the radical economic changes caused by the economic crisis of the eighties and p
rivatization of public enterprises in the nineties, there are still very high co
sts to comply with rules and regulations. These costs are located in three key a
reas: the labor market, the tax structure and regulations for the establishment
and operation of business. This issue resulted in outpatient and informal trade
in all developing countries, which is Peru. The market model of the city of Chic
layo in Lambayeque, Peru is a market where there is a higher rate of informality
. Knowing this problem then we must ask: What are the factors influencing inform
al trade of clothing in the market model of the city of Chiclayo? 3.2. GENERAL O
BJECTIVES To measure and diagnose the factors influencing informal trade of clot
hing in the city of Chiclayo. SPECIFIC OBJECTIVES • • • Identify the socioeconom
ic aspects closely with vendors who sell lead to an informal way. Measure what i
s the cultural level of the street sellers and buyers and determine how developm
ent affects the economy. Define the profit of the sellers obtained the illegal m
arketing.
3.3. JUSTIFICATION The precarious situation on which our society has been built
has led to much of the population to take advantage of illegal activities such a
s informal marketing of clothing as a means of subsistence. Therefore it is nece
ssary to investigate this type of problem to check to what extent it affects soc
iety and the economy as informal trade and can provide some possible solutions.€
Following the above we can conclude that it is important to analyze this kind of
trouble understanding that these business activities directly affect the develo
pment of the country through tax evasion and therefore it is necessary to define
precisely the factors that lead to this type activities and take steps to addre
ss them. 4. REFERENTIAL FRAMEWORK OF THE PROBLEM. 4.1. THEORETICAL FOUNDATIONS.
Informal trade is one of the most notable activities of the informal economy in
Peru. It takes place primarily through street vendors, called vendors, which exi
st in all Latin American cities. Many people of modest origins, probably migrant
s from rural to urban areas, given the situation in which they are, have to enga
ge in trade in order to create a business that allows them to earn a minimum sub
sistence and survival. The consumer visits to places of informal businesses, go
with the need to purchase products at a lower price. There are several points to
address but I will mainly informal trade clothes. We know that informal trade i
s only a symptom, mainly urban, a chronic disease of the economic system, the in
formal economy. This phenomenon is a social response that increases in times of
crisis and not back easily.
According Torkman (2001), argues that the mismatch between supply and demand of
labor forces in the modern sector of the economy are the main causes that lead t
o the practice of street trading, also the author tells us that the main reasons
for those carrying out informal trade and outpatients are difficulty in finding
employment in other activities, independent search for work with the family, be
cause that's all they do, because they can share domestic responsibilities, that
they can combine with other occupations. International Congress StreetNet INTER
NATIONAL held on 16 and 17 March 2004, the Seoul (Korea), considers important th
e role of a street vendor in society, as it generates employment and income sour
ces, and represents a distribution and marketing channel that facilitates the su
pply of commodities for the survival of large sections of the population. On the
other hand Maldonado, and Carlos Hurtado, Montserrat, require that all studies
have been conducted on the subject, have meant little or nothing when it comes t
o making decisions and designing public policies. Because of the complexity of t
he phenomenon always neglected factors and major issues and important, as this p
henomenon can not be studied or solved without the participation multidisciplina
ry anthropologists, sociologists, economists, urbanists, planners, lawyers, legi
slators, educators, etc. and where we should also include political (career and
career), public officials, private entrepreneurs, formal and informal traders an
d consumers, as users and co-responsible, it also has something to say and do. D
elgado, Joel, Monica Gasco, Juan González, Et. Al (2005) confirm that much of th
is commercial activity takes place in informal public spaces creating additional
problems to the city as traffic congestion, insecurity, solid waste, etc. The M
unicipalities are directly applicable recovery road to ensure minimum conditions
of urban order, and in many cases not to, permits or "becomes a blind eye" to t
he violation of existing rules.
5. IDENTIFICATION OF VARIABLES INDEPENDENT VARIABLES: Buyers Sellers
DEPENDENT VARIABLE: Informal Trade: Clothing
VARIABLES ITERVINIENTES: Social Factor. Economic factor. Cultural Factor.
5.2. Operationalization of variables
CATEGORY VARIABLE DIMENSION SOCIAL CLASS INDICATORS High Medium Low Fare
SOCIAL
HOUSING LOCATION
Human Settlement Construction Of Fence Caserío 400-500 MONTHLY INCOME 500 - 600
600 - 700 Of 700 to more unemployment
INFORMAL TRADE FACTORS OF CLOTHING
REASON FOR PURCHASE IN INFORMAL TRADE
ECONOMIC
REASON OF SALE OF INFORMAL MODE
Low income Low Price Age Discount Option For Custom Lack of Preparation is Costl
y
DIFFICULTIES TO BE FORMAL
Steps Too High Authorities Fiscal Control Desapoyo High Taxes
CULTURAL
HIGHER SECONDARY primary literacy
Referral Instructions
II. MATERIALS AND METHODS.
TYPE OF STUDY METHODOLOGY
This chapter indicates the type of research has been used in the performance of
the project€was a descriptive study because it has obtained information about th
e informal marketing of clothing in the market area model of the city of Chiclay
o, to formulate objectives and describe the characteristics of each of the varia
bles put into the research project. Cross-sectional descriptive-analytic POPULAT
ION AND SAMPLE Universe: All informal both buyers and sellers in the market mode
l from 15 to 60 years. Shows: The elements of the formula are: n - sample size N
- Total number of elements of the population, in this case is equal to 592. Z -
tabular value based on the reliability of the estimates (95%) which equals 1.96
. d - sampling error is equal to 0.07.
n =
pqz 2 e2
Therefore we take as sample 50 respondents within socialeseconómicos variables.
METHODS AND TECHNIQUES OF DATA COLLECTION TECHNIQUES AND INSTRUMENTS FOR DATA CO
LLECTION

For the development of this research work has considered the following technique
s:
Method: The method used is descriptive. Techniques: The techniques we employ are
as follows: Technical Staff. Using: • • Technology Transfer. Whose instruments
are: Textual sheets and summary sheets. Technical Analysis of Texts. Documented
reviews of texts, through appointments of documentation. Technical Field. In thi
s technique has been used: • • Observation. We learn through observation or perc
eption of the seller in their daily activities and informal. The survey. It is a
field technique was used in this investigation to identify the socioeconomic, c
ultural and political. The survey will contain personal data, allows us to obtai
n information related to the social, economic and cultural. STATISTICAL TREATMEN
T OF DATA.

Data Collection .- Data collection is done in order to clarify the elements that
constitute the sample for research. Management and description of the data .- I
n order to clarify the possibility of the relationship between the variables of
our problem. ANALYSIS OF DATA. These data are interpreted by analyzing all the c
ontent through information and observations made on the socioeconomic influence
on 'academic performance, all data analyzed inferences help to help analyze, und
erstand the phenomenon under study. III. RESULTS AND DESCRIPTION According to co
nsumer surveys Graph 1

Age of consumers who shop l Market Reports

45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
42% 30%
16% 6% 6%
24-33 Years 15-24 Years 33-42 Years 42-51 Years 51-60 Years
Chart No. 1 shows that the predominant age of the consumer is between 24 to 33 y
ears to 42%, with 30% ages 15-24, and 16% between the ages of 33-42 , and 6% fro
m 42 to 60 years of age. Graph 2
Consumer When Buying Sex on the M arket Informal
54% 55% 50% 45% 40% M 46% F
In Graph 2, we found that consumers who purchase the Market was the level of edu
cation in the sex predominance in primary
Informal women with 54%, and 46% males.
CHART No. 3
40%
40% 30%
30% 20% 10% 0% Illiterate Primary Secondary Higher 14% 16%
Chart No. 3 shows that the level of education that dominates the consumer is the
secondary level to 40% with the 30% level, 16% primary and 14% illiteracy. GRAP
H N º 4
Reasons for Buying Consumer Informal trade
Percentage 50% 40% 30% 20% 10% 0% 14% 10% 20% 12% 44%
There are more option for cheap discount collaborate with these custom people
Others
Graph N º 4, it was found that the reasons predominant by consumers buy these pr
oducts because they are cheaper, with 44%, with 20% custom, 14% is no option for
sales, with 12% by other reasons and 10%
Consumer Preferences According to the type of clothing to work with these people
who buy and also to Peru.
50% 40% 30% 20% 10% 0%
44%
GRAPH N º 5
32%
12%
12%
Pants
Shirts
Polos
Blouses
Graph N º 5, it was found that the type of clothing that most buy pants with a 4
4% to 32% poles, shirts and blouses with 12%. GRAPH N º 6
Consumer Review clarifier: Does Inform the Com erci should disappear?
92% 100% 80% 60% 40% 20% 0% 8% Yes No
Graph N º 6, found that consumer perceptions about informality, whether it shoul
d go, was NOT at 92% and with Si to 8%.
GRAPH N º 7
Informal Trade Affects Society
70% 70% 60% 50% 40% 30% 20% 10% 0% 30% Yes No
Chart No. 7, found that 70%, as consumers,€does not affect the company being the
most predominant, and by 30% YES.
GRAPH N º 8
Business Uptime
80% 70% 60% 50% Percentage 40% 30% 20% 10% 0% 72%
16% 8% of 0-5 years 5 - 10 years From 10 to 15 years 4% 15 to more
Chart n º 8, we see that the years they have is this work is 5-10 with 72% and t
his is the most prevalent, with 16% between 1 and 5years, 8% from 10 to 5 years
to 4% over 15 years.
GRAPH N º 9
Reasons to work at M arket Informal
60% 60% 50% 40% 30% 20% 10% 0% Lack of working age economic situation 10% 0% Oth
er 30%
Chart No. 9, he found that the reasoning that prevailed was the lack of work wit
h 60% to 30% the economic situation, by age with 10% and 0%. GRAPH N º 10
Why do you think is hard to be formal
Percentage 40% 30% 20% 10% 0% 0% Not prepared is expensive requires more control
Lack of High taxes support many fiscal authorities paperwork 20% 20% 12% 8% 40%
Chart No. 10, it was found that the difficulty most prevalent are the high taxes
paid at a rate of 40%, 20% because it is expensive and requires many formalitie
s, with 12% because there are more fiscal control and 8% for lack of support fro
m authorities
IV. DISCUSSION 4.1. DISCUSSION AT THE GENERAL OBJECTIVE. Then based on informati
on gathered from the market model, we will analyze our overall objective has bee
n achieved or not. • General objective:
Measure and diagnose the factors influencing informal trade of clothing in the c
ity of Chiclayo. To determine the current status of the informal trade of clothi
ng on the market model of the city of Chiclayo, Lambayeque is necessary to analy
ze and interpret all research results and translate them into overall performanc
e to ensure a complete result. This analysis will be given according to three fa
ctors that have been used: social, economic and cultural, both the seller and bu
yer. The three factors are interrelated, the social factor is that the vast majo
rity of traders come from distant cities, such as Jaén, Bagua, Flame, Santa Cruz
, Chongoyape and some provinces of Cajamarca, there are a large number of mercha
nts from the department of Lambayeque Young Peoples, human settlements, but many
of them told us engaged in informal trade due to unwanted marital unions and a
strong need for basic necessities such as food shelter, education, etc. Referrin
g to the economic factor is playing an important role in informal trade, this is
due to the scarcity of employment, not having a stable job where they can devel
op their potential are in the need for such activities informal because they can
not afford such basic necessities.
With regard to the office of the vendor, it was found that this factor does infl
uence the informal trade, because most people who engage in this activity come f
rom rural areas, and some migrants from the mountains and have not with a stable
job where they can develop their potential seen in the need to resort to this t
ype of informal activities. With respect to social Buyer found that most consume
rs come from PP:. JJ, human settlements, because they have a low income and info
rmal trade will offer products at low prices. Regarding the economic factor of t
he seller, it was found that this factor is one of the main reasons for which th
e seller is engaged in this activity because it does not have a stable job and h
as a low income to meet their main needs this is what drives him to work in an i
nformal trade with sprawl is increasing on a large scale. Finally, I have analyz
ed the cultural factor of the seller. It was found that most sellers is educatio
nal instruction in secondary level (56%) being the cause of not finding a formal
job, because the companies require a higher level of education, we must also re
alize that factor is closely related to the economic factor, due to low income p
arents by their children can not complete a technical or professional career, mu
ch concluded technical studies but due to the scarcity of jobs these people incu
r the informal trade not only in clothing, if not in the trades, as these can no
t be unemployed porvida.
4.2. DISCUSSION AT THE SPECIFIC OBJECTIVES. Here are the results of fieldwork re
search,€then be confronted with the specific objectives planned. • Goal No. 1. I
dentify socio-economic aspects closely related to street vendors who sell lead t
o an informal way. Then try to identify the social and economic aspects of the s
eller. That the vast majority of sellers who have interviewed and the informatio
n provided these young people come from towns and settlements such as: San Anton
io, Chilapito, Cross of Hope, etc. This is perhaps the reason why these people d
o not have access to formal jobs, and engage in this kind of activity which make
s them more viable for a job. Informal traders engaged in this activity because
it is one of the most accessible to persist and this is clear in the big boom an
d now has street vending to be cheaper. And it's one of the most profitable acti
vities to be formal. Economically we see that informal trade of clothing on the
market model, if it is profitable for sellers to have a good income which allows
 them to cover their basic needs. Most vendors sell a day between 50 and 60 sole
s, taking into account that this amount is on during the month, because they hav
e to pay for merchandise and other expenses. Having a net profit of between 400
and 500 soles. So maybe that's why every day increases over this business.
•
Objective No. 2: Measuring what is the cultural level of the street sellers and
buyers and determine how to influence the development of the economy. Analyzing
surveys of buyers and sellers, it was found that informal trade dress of the mar
ket model of the city of Chiclayo is a socioeconomic and cultural problem, becau
se most sellers and buyers in rural areas and their cultural level are low, lack
ing the majority of work that leads to not having enough income for the merchant
to formalize their business and the buyer can purchase quality products and gua
rantee. • Goal 3: Define the profit of the sellers obtained the illegal marketin
g. To measure the degree of earnings must first have in mind the cost of the pro
duct and what price is being offered to the consumer, taking the difference betw
een the cost price and selling out is where the informal trader's net profit, bu
t on information supplied by the trader told us that their work gives them a pro
fit to cover their basic needs food, shelter, clothing, etc., said that at least
enough to live.
CONCLUSIONS In our research, we have come to define the following conclusions: 1
. Informal trade dress of the market model of the city of Chiclayo is a socioeco
nomic and cultural problem, because most sellers and buyers in rural areas and t
heir cultural level is low, lacking the majority of work that leads to no have e
nough income for the merchant to formalize their business and the buyer can purc
hase quality products and guarantee. 2. The sellers belong to a stratum of socie
ty low, because most of them live in isolated and dangerous areas of the city. A
nd he found that his monthly income of these people tend to cover their basic ne
eds is for this reason that follow in this business. 3. The more items purchased
by the public, are jeans, polo cotton shirts and blouses, the most sought pants
and polo shirts. It also implies low prices with these products. 4. The level o
f profits obtained by the informal traders of clothing, ranging approximately be
tween 500 to 800 soles a month, depending on the season and the type of clothes
they sell.
RECOMMENDATIONS. Taking into account the results of our research, we consider de
sirable to help in the fight against informal trade should take into ditch the f
ollowing: • • • • You must create more jobs so you can slow the growth of inform
al trade . It should create a shopping mall where vendors focus all informal bus
inesses, to give solution to the problem. The state must find ways for other cou
ntries to invest in our country and thus create more jobs. A single agreement ai
med at establishing the mechanisms to release any space in common use that provi
sion of the law, is intended to free transit, establishing programs for informal
trade turnover. To fulfill its purposes doubt be public safety,€and the generat
ion of jobs and health care. • • • • • Promote the participation of all informal
trade organizations, to agree, through their leaders, efforts to regularization
. Identify and, where appropriate to establish operating to remove persons who w
ork without permission trade on public roads. Integrate and maintain a hadron of
street traders in areas that are intended to this activity. Oversee and monitor
the concentration of street traders to avoid areas that are saturated and thus
avoid affecting the free flow. I believe these actions and others that would loo
k as implementing improvements, we will take the first steps that offer solution
s to this phenomenon, so that henceforth we have a regulation or law to establis
h a business that benefits the economy and all those not funded in the regulated
trade
BIBLIOGRAPHIC REFERENCE
•
ALVARADO CASTILLO, Wilder, and others Descriptive Statistics, Editorial Griselda
, Lambayeque - Peru, 2005.
•
Referee, Victor Cesar, Scientific Method: Planning Research, Science Publishers,
2nd edition in Spanish, Chiclayo, Peru, 2000
•
DE SOTO, Hernando, The Other Path: The invisible revolution, Editorial Diana, Me
xico City, 1987.5ta edition.
•
TOKMAN, Victor E. Informality to modernity. ILO Regional Office for Latin Americ
a and the Caribbean, Lima - Peru, 2001, pp. 345.
•
MALDONADO, Carlos and others The Informal Sector in Latin America. An Interdisci
plinary Perspective, Bogota - Colombia, 1997 - 2004, pág156.
•
SCHNEIDER, F. and Other, Hiding in the shadows, the growth of the Underground Ec
onomy, Economic Issues, Mexico, 2002, pp. 204
• •
Radio RPP Noticias - Regions in March, informal traders. DELGADO, Joel, Monica G
asco, Juan González, Et. Al (2005), Informal Work in the city of Chiclayo.
•
Management in the Third Millennium, Rev. Research in the Faculty of Administrati
ve Sciences, San Marcos (Vol. 7, No. 14, Lima, November 2005)
SURVEY ON THE STREET VENDORS CASUAL CLOTHING TRADE IN THE MARKET MODEL CHICLAYO.
Through this survey, we want to know the different opinions of merchants offerin
g this product. For this reason we need your cooperation to address each of the
questions raised. INSTRUCTIONS: Read each question. Then, mark a cross (x), that
apply and complete as necessary.
I. GENERAL INFORMATION:
1 .- Age: ____ 2 .- Sex: Male 3 .- Educational level: Secondary Illiterate
II. QUESTIONS:
Female
Superior Elementary
4 .- What is the type of clothes you sell? Pants Polos Shirts Blouses
5 .- What type of clothing is purchased by the public? Pants Shirts
Polos 6 .- How much is your monthly income? 400 - 500 of 600-700 from 500-600 of
 700 more
Blouses
7 .- Did you have a permanent job before? YES NO
8 .- How long has this business activity? From 0-5 years 5 - 10 years from 10 to
15 years from 15 - over 9 .- What reasons do you have to work in this business
which she knows she is informal? Lack of jobs for low economic status age Other:
________________________ 10 .- Why do you think is difficult to be formal? He i
s not fit requires a lot of paperwork is costly Mayor fiscal control authorities
Lack of support from high taxes
BUYERS SURVEY OF INFORMAL CLOTHES SO OFFERED ON THE MARKET MODEL CHICLAYO
Through this survey, we want to know the different opinions of people who buy cl
othes in the informal sector. For this reason we need your cooperation to addres
s each of the questions raised. INSTRUCTIONS: Read each question. Then, mark a c
ross (x), that apply and complete it deems necessary.
I. GENERAL INFORMATION:
1 .- Age: ____ 2 .- Sex: Male 3 .- Educational level: Secondary Illiterate
II. QUESTIONS:
Female
Superior Elementary
4 .- What are the reasons purchase products in these positions and not in a stor
e? There are cheaper discount option I like to help these people by custom Other
: _______________________________________
5 .- What type of clothes purchased most often? Pants Polos Shirts Blouses
6 .- Do you think improving the informal economy? YES NO
Because: _______________________________ 7 .- Do you think that informality affe
cts society? YES NO