Inter-class warfare is taking place at the expense of poor vendors

Dec 29, 2022 Features / Columnists, Peeping Tom

Kaieteur News – The representatives of three Private Sector Organisations have claimed that business was better this year. The Chairman of the Private Sector Commission was reported by the Guyana Chronicle as saying that this year’s Christmas was “excellent” for the private sector, the Head of the Essequibo Chamber of Commerce believed that businesses did fairly well, and the Chairman of the Region 3 Chamber of Commerce, said that, from his feedback, things were better this year.

These are premature assessments which do not accord with what this Columnist observed over the Christmas Season. Indeed the shopping areas were crowded but sales appeared to be sluggish, at best. Some of the business persons that this Columnist spoke to complained about poor sales. But this is not unusual because the business community is full of perennial whiners. But even the shoppers were complaining. Many said they expected more persons to be on the roads and in the shopping centers, and some businesses are worried that they may not breakeven for this year because of the poor Christmas sales.

The situation was so bleak that some stores were forced to open on Boxing Day (Monday) and on the following day (Tuesday) in order to try to see if they could secure some more sales. And some businesses opened on Christmas afternoon, something which is usually unheard of, and still sales were not that brisk.

The Government was clearly mindful of the slothfulness of business activity was the country approached Christmas. It announced that more than 50,000 Public Employees had received salary increases and others had received additional adjustment and bonuses. All of this it was said, pumped billions into the pockets of consumers as disposable income.

Hopefully, the newspapers will undertake their own independent assessment of how was business over the period. This would allow for a better understanding of just what is taking place in the economy.

There are two major undercurrents in the economy which could account for poor sales by businesses. The first of these relates to the massive multiplication of sellers in the economy. It is fact that the number of businesses have increased tremendously and at rate which has been higher than the increase in local demand for goods and services. There were almost twice as many persons selling apples and grapes than in previous years.

Relatedly there has been a wide diffusion of business activities. Many villages and rural communities have seen an increase in the establishment of businesses. Businesses are propping up all over, even in residential areas. As such consumers have more options and this translates to less sales for most businesses.

Adding to this proliferation of businesses are the large numbers of illegal Vendors who descend in front of businesses on pavements and on roadsides. Businesses are unable to do anything about this massive illegal invasion because the Authorities have long lost a grip of the situation. This invasion means that there are virtually just as many sellers as buyers, and this has eaten away at the market share of traditional businesses.

But within the vending establishment, there has also been a significant change. The majority of the persons who are vending in front of businesses on the roads and parapets are not poor people.

Poor people do not possess millions of dollars in stocks and do not turnover of hundreds of thousands of dollars each week. Poor people cannot afford to spend millions of dollars to build and outfit food caravans. Poor people cannot afford the cost of a canter from which to do business. Poor people cannot afford some of the equipment that is being used in roadside food vending.

Elements within the lower middle class are taking over vending. These are not poor persons; they have substantial assets and they are taking over the vending on pavements parapets and on the roadside where, in some cases, permanent businesses are being established.

This is not poor people who are scrounging for living; this is being done by persons with considerable resources. On Regent Street, the Vendors arrive early in the mornings in their own vehicles which they park in the cycle lanes. There are some Coconut Vendors whose daily turnover is more than one hundred thousand dollars.

Vendors are now franchising. Some of them have established roadside outlets miles away from their original establishment. Some of them have huge businesses in the markets and still set up stalls on the roadside and pavements. Some move from market to markets, on different days.

The City Council has granted permission for booths to be established on the Merriman’s Mall. These are going to be used for beauty parlors. Do you believe that it is poor persons who are going to outfit and operate these establishments? Think again!

The lower middle class is pushing the poor out of vending spots. They are invading and buying out these spots. And at the same time, they are providing unfair competition for established businesses that are seeing their sales decline precipitously.

(The views expressed in this article are those of the author and do not necessarily reflect the opinions and beliefs of this newspaper and its affiliates.)