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2/5/2016 A study on vegetable

vendors
[Document subtitle]
A Survey and Report on
“The Livelihood of vegetable shop Owner in Dhaka city”

Submitted to
Jahangir Alam Chowdhury
Professor
Department of Finance
University of Dhaka

Submitted by
Shahrul Habib
ID: 32029
Department of Finance, EMBA
University of Dhaka

Submission Date: 2nd may 2016

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2nd may, 2016

Jahangir Alam Chowdhury

Professor

Department of Finance

University of Dhaka

Sub: Submission of final report for completion of course.

Dear Sir,

This is to inform you that I have completed my report on vegetable vendors where
I try to use my learnings from this course. In this report I try my best to analyze the
information that I collected from the vegetable vendors using statistical
instruments. The report has been prepared for the completion of the course,
business statistics.

In writing the report, I have strictly followed your format and instructions so as to
present my analysis in a clear and easier way. However, I am obliged to elucidate
any queries that may arise.

Thank you

Yours Sincerely

SHAHRUL HABIB

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Acknowledgements

I would like to take this opportunity to thank Mr. Jahangir Alam chowdhury for
giving me the opportunity to make a survey on the vegetable vendors and make a
report on the data collected by my own. I really feel lucky to have this kind of
opportunity so that I can apply my learning as well as sharpen my knowledge by
solving real life problems and incidents. In this report I try to apply my statistical
learnings and instruments to solve and analyze the real life problems which is really
a great learning for me.

Secondly, I would like to thank the vegetable vendors who really helped me to
collect my desire data by cooperating with me. The vegetables sellers were really
helpful and they were willing to help me by giving these information.

Lastly, we would like to thank the Almighty for his blessings.

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Executive Summary

A vegetable shop is a very essential and important shop for us where we used to go
in regular basis to get our desired vegetables and nutrition. It opens early in the
morning and closes late at night. It is usually found at the market place where
primary foods are sold.

I have conducted this survey on vegetable vendors where I try to find out the
livelihood of a vegetable seller. This survey was conducted with the objectives of
analyzing the present scenario of the vegetable shop owner in Dhaka city. The Data
were collected through a field survey from the location of Dhaka city with the help
of comprehensive questionnaires.

There were different categories of data such as name and age of owner of the
enterprise, Average monthly profit, number of employees, monthly employee
wages, number of family members, yesterday’s profit, name of the day, requirement
of annual working capital, requirement of additional loan, amount of land for living,
house rent, literacy rate, marital status etc.

A number of statistical tools (both quantitative and qualitative) were used to analyze
different variables. Frequency table and Cumulative frequency distribution organize
the data in different class interval and also graphically represent them. A correlation
analysis was done among variables to identify their characteristics and how one
variable is changing with respect to another variable. A multiple linear regression
model technique was used to determine effect of different variables. In this model,
the average monthly profit used as dependent variable. Initially six independent
variables were taken into consideration to see their impact on average monthly

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profit. After some logical and rational analysis, it was shown that only four
independent variables have significant effect on average monthly profit.

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Table of content

Number Topic Page

1 Introduction 7

2 Origin of the report 7

3 General objective 6

4 Methodology 6

5 Limitation 9

6 Age frequency table 10

7 Daily Profit table 11

8 Number of year in Business 13

9 Monthly Profit distribution 14

10 Daily income and average 16

11 District distribution 17

12 Percentage of ownership of main owner 20

13 Findings and conclusion 20

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Introduction
This survey was conducted with the objectives of analyzing the present scenario of
the vegetable shop owner in Dhaka city. The Data were collected through a field
survey from the location of Dhaka city with the help of comprehensive
questionnaires. There were different categories of data such as name and age of
owner of the enterprise, Average monthly profit, number of employees, monthly
employee wages, number of family members, yesterday’s profit, name of the day,
requirement of annual working capital, requirement of additional loan, amount of
land for living, house rent, literacy rate, marital status etc.

A number of statistical tools (both quantitative and qualitative) were used to analyze
different variables. Frequency table and Cumulative frequency distribution organize
the data in different class interval and also graphically represent them. A correlation
analysis was done among variables to identify their characteristics and how one
variable is changing with respect to another variable. A multiple linear regression
model technique was used to determine effect of different variables. In this model,
the average monthly profit used as dependent variable. Initially six independent
variables were taken into consideration to see their impact on average monthly
profit. After some logical and rational analysis, it was shown that only four
independent variables have significant effect on average monthly profit.

Origin of the report


Here the report is a part of the course. We all are required to prepare this report so
that our honorable faculty can evaluate us properly whether we learnt the course
materials properly and can apply those in real life problem effectively. Our
honorable teacher Jahangir alam Chowdhury sir provided us a questioners on the
vegetable vendors and we all are required to collect data on the vegetable vendors
through the survey. After doing the survey properly we all are required to prepare a
report on the vegetable vendors with the information that we collected through the
survey.

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General objective
The general objective of the report is to justify our learning from the course as well
as the ability of solving problems using the mathematical instruments that we learnt
from the course. At the same time we did survey on the vegetable shop owners by
going to them. That is kind of another experience of getting primary information by
field visit.
The objectives of the study are:

 To analyze the socio-economic condition of the vegetable shop owner


of Dhaka city.
 To analyze the effect of different variables on the average monthly
profit of the enterprise.
 To develop a mathematical model for interpreting the critical
variables.

Methodology
Sources of data:
To do the report we all have to collect data individually. We got a questioners from
our honorable teacher and required to collect data by visiting the vegetable vendors.
Here I collect firsthand information by myself which is also known as primary data.
As I use primary data, there is less probability of having and using wrong
information.
Sample selection:
We were required to collect data of 20 vegetable vendors. So while collecting data I
try to collect data from all type of vegetable vendors like permanent shop, temporary
shop, van, hawker etc. to get a clear view of the study.

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Statistical method:
I try to implement the statistical method to choose the vegetable vendor as well as
collecting data. Simple statistical techniques were used to tabulate the results of
this study.

Limitation
Nothing in the world is perfect and limitation is the main reason for this.
Limitation is everywhere that make us work and explore things again and again. I
also face some limitations in the perspective of this report.
 The owners are sometime refuse to give information.
 Some owner refuse to give some specific information.
 I use 20 sample which is not that much enough to understand the scenario.
 Some information are time series based.
 Limitation of time and effort.

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Age frequency table:
Age is one of the important data in our survey. The frequency table, histogram and
cumulative frequency distribution are drawn below for the age of the owner of the
vegetable vendors.
Here the table shows the ages of the vegetable vendors of 20 in number. I collected
data of 20 vegetable sellers and then plot those in table and graph.

Cumulative
Age Frequency frequency Percentage
15-20 3 3 0.15
20-25 4 7 0.2
25-30 5 12 0.25
30-35 5 17 0.25
35-40 3 20 0.15

Here from the table we can clearly say that the age of 25-35 got the highest
frequency. Age 25-30 and 30-35 get the same frequency which is 5 and the
percentage of the class is 25%.
The age limit 20-25 got the second high frequency which is 4 and the percentage is
20%.

Frequency

15-20
15% 15% 20-25
20% 25-30
25%
30-35
25%
35-40

Here is the pie chart to show the percentage of the age in the business.

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Frequency
6

0
15-20 20-25 25-30 30-35 35-40

This bar chart shows the frequency of the age group of the vegetable vendors.

Daily Profit table


Here this table shows the daily profit of the vegetable vendors. The vegetable
vendor’s daily profit is much more similar and there is very less variation among
their daily profit. Here is the 20 vendor’s daily profit-

Profit Frequency Percent

500-1000 10 0.5

1000-1500 4 0.2

1500-2000 1 0.05

2000-2500 2 0.1

2500-3000 3 0.15

Total 20 1

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From the table we can see that the daily profit of the vegetable vendors is 50%
lies in the 500-1000 tk. 1000-1500 tk daily profit that is earned by the
vegetable vendor is 20%. 2000-2500 tk daily profit earned by the vendors is
very less in number which is 10% only.

Bar Chart

Frequency
12
10
8
6
4
2
0
500-1000 1000-1500 1500-2000 2000-2500 2500-3000

Pie Chart

Frequency

15% 500-1000

10% 1000-1500
50% 1500-2000
5%
2000-2500
20%
2500-3000

Here the pie chart shows the percentage of the income group where we can see that
the 500-1000 class get the half of the chart.

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Number of year in Business
Number of year in the business is another important matter to consider. The
experience and the amount of profit depends on the number of year in the business.
The frequency table, histogram and cumulative frequency distribution are drawn
below for the number of years in business of vegetable vendor.

No. of years in Cumulative


Business frequency Frequency Cumulative Percentage
0-5 2 2 10%
5 to 10 13 15 65%
10 to 15 5 20 25%
Total 20 20 100%
Here from the table we can see that the people who are in vegetable business, most
of them are in the business for 5-10 years in the business. Here the people who are
in the business for 5-10 years is highest in number and their percentage is 65 which
is more than half of the total.
Bar chart and pie chart are given below to have a clear view of the distribution.

frequency
14
12
10
8
6
4
2
0
0-5 5 to 10 10 to 15

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frequency

10%
25%
0-5
5 to 10
10 to 15
65%

Here the pie chart clearly shows that the most of the vegetable vendors lies in the 5-
10 class in the perspective of being in the business.

Monthly Profit distribution


The monthly profit is another important factor to understand the financial and
economic condition of the vegetable vendors. Here the table show the monthly
income of the vegetable vendors where I try to make some class and arrange the
information in those class accordingly.
By having a look of the monthly income of the vegetable vendors we can assume
the economic condition of the vegetable vendors and their financial condition can
also be read.

Monthly Profit Frequency Cu. Frequency Percentage


10000-15000 1 1 0.05
15000-20000 1 2 0.05
20000-25000 6 8 0.3
25000-30000 7 15 0.35
30000-40000 2 17 0.1
40000- 3 20 0.15
From the
table we can see that the monthly income of the vegetable vendors is very good
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where the class 25000-30000 got the highest frequency. The second highest
frequency lies in the class 20000-25000. So we can easily assume that the average
monthly income is in between 25000 to 30000 tk.
Here pie chart and bar chart is given to have a better visual understanding of the
information.
Pie chart

Frequency
10000-15000

15% 5%5% 15000-20000


10% 20000-25000
30%
25000-30000
35% 30000-40000
40000-

Bar chart

Frequency
8
7
6
5
4
3
2
1
0

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From the bar chart we can see that the class 25000-30000 got the longest bar in the
diagram because this class get the most of the vegetable vendors.

Daily income and average


It is important to know the mean or the average of the income so that we can compare
the income of the vegetable vendors with the mean and can make decision on that.
Here the two columns are for the daily profit of the vegetable vendors and the last
row is showing the average.

Daily Profit
1700 800
800 500
800 900
600 500
1000 500
1000 3000
3000 3000
600 700
600 1000
1400 800
Average 1160

Scatter plot

3500
3000
2500
2000
1500
1000
500
0
0 5 10 15 20 25

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From the scatter plot we can see that most of the elements is lies in between
500 to 1000 but the average is above 1000 which is 1160. It happens just
because of some extremely large data in the data set.

District distribution

District that the vegetable vendors come from is another important matter to
consider. They are from different district but there is some common district
that most of the vendors come from.

District Frequency
Comilla 3
Kishorgonj 1
Gazipur 1
Barisal 2
Pirojpur 1
Noakhali 5
Norail 1
Faridpur 2
Laxmipur 1
Bikrampur 2
Maymansing 1
Total 20

Here in the table we can see that the frequency of the people come from
Noakhali is high in here. Here 5 vendor are from Noakhali out of 20 which is
40% of the total number. Let’s have a look in the graph below to have better
understanding about the findings,

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Frequency
Comilla
Kishorgonj
5% 15%
10% Gazipur
5% 5%
5% Barisal
10%
10% Pirojpur
5%
5% Noakhali
25%
Norail
Faridpur

Here the graph clearly show the percentage.

Frequency
6
5
4
3
2
1
0

In the bar chart it is clear that the Noakhali got the highest and longest bar in
the diagram.

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Type of business

We divide the business in four categories and those are van, temporary shop,
permanent shop, and hawker. We assign number for each category for
calculation.
 1 for van
 2 for temporary shop
 3 for permanent shop
 4 for hawker

Tpye Frequency

1 3

2 5

3 10

4 2

From the table above we can see that number 3 get the highest frequency.
That means the number of shop that is temporary is large in number.
Let’s have a graphical view of those number,

Frequency

10% 15%
1
2
25% 3
50%
4

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The pie chart shows that the temporary vegetable shop is 50% among all shop
available in Dhaka city.
Percentage of ownership of main owner
Among 20 vegetable shop the entire owner holds 100% ownership of the business.
As they are small shops so the owners opened it on their own and they didn’t go for
any kind of partnerships.

Percentage of
ownership of
0%
main owner
Owner

Other
100%

Findings and Conclusion

In this paper I tried to analyze elaborately the present scenario as well as future
growth and development of the vegetable shop Business in Dhaka city. I find some
specific information about the business and the economic, financial condition of the
vegetable vendors. What I found out here is,
 50% of the vegetable shop owner is at the age between 25 to 35 years.
 The daily profit of the vegetable vendors is 50% lies in the 500-1000 tk. 1000-
1500 tk daily profit that is earned by the vegetable vendor is 20%. 2000-2500
tk daily profit earned by the vendors is very less in number which is 10% only.
 The people who are in vegetable business, most of them are in the business
for 5-10 years in the business. Here the people who are in the business for 5-

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10 years is highest in number and their percentage is 65 which is more than
half of the total.
 The monthly income of the vegetable vendors is very good where the class
25000-30000 got the highest frequency. The second highest frequency lies in
the class 20000-25000. So we can easily assume that the average monthly
income is in between 25000 to 30000 tk.
 The average daily profit is 1160 TK.
 Most of the vendors are from Noakhali out of 20 which is 40% of the total
number.
 50% of the shops are temporary.
 100% of the vendors are sole proprietorship, they hove the 100% share of their
business.
The problems that the owner face mostly are,
 Limited capital.
 No flexible loan facility.
 Lack of training institution.
 Market risks.
 Political risks.
To ensure the sustainable growth and development, government as well as some
institutions must come forward to satisfy their demand. This sector is really
important for our daily need basis. We all have to become careful and helping handed
for them all.

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