ID # 31032 Rocky mahmud

1. Introduction

Living in a densely populated country like Bangladesh has always been very struggling. Due to
high volume of population joining in the workforce per year the unemployment rate is also very
noteworthy in this country. According to IFAD, almost one third of the population of Bangladesh
live below the poverty line and the rate of poverty is higher in rural area 36% compare to the urban
area 28%. Although Bangladesh economy was once known as agro based economy but now it
seems that the total impact of agricultural industry on the countrys economy is less than 20%. It
implies the fact that rural people can no longer live solvent just by working in the agricultural
industry. The same thing happened to the fisheries industry as well, those who were involved in
the fishing industry in a small scale are failing to keep up because of big investors takeover to the
cultivation level and it has created more unemployment in the rural area.

To seek better opportunity these unemployed rural population migrate to urban areas in search of
employment. As Dhaka is the capital city of Bangladesh this rate of migration is higher in Dhaka
city. These migrated people mostly find jobs in different informal sectors such as petty retail trade,
transportation, labor in manufacturing, construction and domestic services. According to ILO
report, one of the main difficulties in obtaining better employment performance is related to the
inability of the labor market to keep pace with the demographic developments of the country.
Indeed, the working-age population has grown at the impressive average of more than 2 million
people per year over the past two decades and is expected to grow at a pace of 2.2 million per year
over the next decade. Thats why some of these migrated people start their own small business
beside the road side, or by hiring small shops in different residential areas of Dhaka city after
failing to find employment in the city. Among the small businesses most of these people like to
start vegetables selling business, small road side tea stall, old clothing selling, street foods business
and many such other business because of low investment requirements and ease to enter the
business.

The most interesting fact is that these people who are doing business at the street have a great
impact on the countrys overall trades. And very few research was conducted in this sector to know
the socioeconomic position of these business people. In this report I have tried to gather a set of
information of the people who are running a road side tea stall in Dhaka city, to find out the socio

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economic standing of these people. The tea stall owners in Dhaka City are those poor, and
vulnerable group of people migrated from various geographical regions of Bangladesh where they
have no source of income, generally landless, floating people due to regular natural disasters such
as drought, flood, river bank erosion, cyclone in their areas but capable of doing hard works. There
are a good number of reports published focusing the condition of these neglected people in the
country, learning their condition and taking necessary steps to improve the rest of the poor
community would be the right things to do to advance our country and its economy. I would try to
give a clear scenario about the socio-economic standing of the people who are running a tea stall
at the road side.

1.1 Objectives of the Study

1.1.1 General Objectives

The general objectives of this study is to identify some factors affecting average monthly
family income, social standings and some factors that are nominally upsetting investment
capacity of road side small tea shop owners in Dhaka city.

1.1.2 Specific Objectives

The specific objective of this report is
1. To understand factors affecting average monthly family income of road side
small shop
2. To understand investment capacity and net worth of the business.
3. To understand their family condition.
4. To understand their overall socio economic status.

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1.2 Limitations of the Study

The study was limited by a number of factors

1. The research was limited only in Dhanmondi area of Dhaka city.

2. Sample size was very small (only 20) to present the proposed scenario.

3. Acquiring verified information was difficult, had to rely on the responses

given by the respondents.

4. Some data are calculated based on assumptions, and general idea.

5. Only a single day sales and others data collected which can be very erratic in

case of predicting monthly data.

6. Time constraint led to get narrower outcomes.

7. The knowledge limitation of the researcher was another limitation for this

study.

2. Research Methodology

2.1.1 Primary Research

Primary Research has been done to find the factors that might have impact to the socio-economic

condition of the small tea shop owners in Dhaka city. Thorough information was collected from

primary quantitative and further secondary research, a set of effective questionnaire was provided

to me by the honorable faculty member. Using that questionnaire all the data related to Tea stall

owners are collected from the field research directly. I went to various tea stalls in Dhanmondi

area of Dhaka city, spent time with the owners and gathered the data from them which took time

and patient.

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2.1.2 Secondary Research

Since, the small Tea stalls of Bangladesh have never been A subject to extensive research, there is
lack of literature directly related to it. The strength of secondary study as a contribution towards
development of the core of the research is nothing much to talk about. I gathered some reports
among them Seeking Better Better Employment Conditions for Better Socioeconomic outcomes-
ILO Social, economic and political context in Bangladesh IDS and some other web content
related to the research were studied to gather the idea of presentation for this report.

3. Sampling

Target Population: Road side Tea stall owners in Dhaka City

Sampling area: Dhanmondi R/A, Lalmatia, Mitali Road, Zigatola Notun Rasta

Sample Information:

1. Sample Size: 20
2. Confidence Level: 95%
3. Standard Error: 5%
4. Sampling Method: Random

Data Processing Tools: Minitab, and Microsoft Excel

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4. Statistical Analysis

4.1 Qualitative Data and their Analysis

Qualitative data are the data set that cannot be presented numerically, which usually express
quality or characteristics of a population. In the research I have obtained a number of qualitative
data that are quite related with the Tea stall owners demographic portfolio. The following figure
represents some qualitative data obtained from the field research.

As it can be seen clearly that Name of the Tea stall and the Tea Stall owners name are purely
qualitative data. Secondly we can see their origin, in other words from where they have migrated
to Dhaka city. After considering the tea stall owners origin area I can conclude it like this Most
of the tea stall owners of Dhanmondi area have migrated from Mymensing, Chandpur, and
southeastern part of the country.

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Almost every (100%) Tea stall owners are doing business independently that means these business
are run as sole proprietorship business, and the stall have a single owner. Here in the table (1= Sole
proprietorship) all the respondents said that they are the sole owner of their business.

As we are studying socioeconomic condition of the tea stall owners so it was very important to
know the past working profile of the owners. It seems majority (50%) of the people were employee
in a different sector, and one fourth of the respondents were unemployed before they started the
business, and rest of them were employee in a same sector or owners of a another business. The
whole scenario is presented on a pie chart below.

Owner of a diff
business
Unemployed 5% Employee Same
25% sector
20%

Employee
Different Sector
50%

OWNERS PAST PROFILE

And the last row of the figure above is presenting the type of product the tea stall owners are
selling, from the table it is certain that almost everyone (100%) sells Tea, betel leaf, and
cigarettes which was considered as number three (3) in the survey questionnaire.

All of these above data are known as nominal for of statistical measurement, as these data
can be categorized but cannot be put in order.

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4.2Quantitative Data Analysis

The main objective of the report is to explain socio-economic condition of tea stall owners in
Dhaka city. Keeping the underlying objective in mind family information of tea stall owners were
collected. These data represent discrete and continuous variable and all the level of statistical
measurements (Nominal, Ordinal, Interval, and ratio). In this section all acquired social data are
analyzed and explained according to the measurement level of data.

Measurement Family Male Female Literate Married Employed

members Members Members Members
Mean 4.7 2.85 1.85 2.95 2.6 1.75
Median 5 2.5 2 2.5 2 2
Mode 5 2 1 2 2 2

The figure above are representing average numbers, middle, and mode numbers of various family
related information of the tea stall owners. Although these data does not give us the whole idea of
the family because most of these data are ordinal, and nominal level data. But to conclude a general
family scenario of tea stall owners family the above figure is helping.

The data represents that most of the tea stall owners family consists of five members which is
supported by all measurements (mean, median, and mode). Among these five (5) members there
are usually 2-3 male members and 1-2 female members in the family. The literacy rate is 60%
average in these families (3 out of 5 members average) and on an average there are 2-3 married
members. And it is clearly visible from the table that almost every family has more than one
earning members which should have a significant impact on the family financial condition of these
tea stall owners. Majority of the tea stall owners (80%) lives in Dhaka with their family and only
a few (20%) lives alone in Dhaka city leaving their families in village. It is reported that 70% of
the tea stall owners have lands in their respective villages and rest of the 30% people are literally
rootless people. Among these 70% (14 person) who have lands in village 71% (10 person) people
have a house in the village and most of (90%) those houses are made of Tin at the side wall and
Tin on the roof as well.

The following bar charts would provide a complete scenario of tea stall owners family
demography.

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Family Information Summery

7

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Total Family members Male Female Literate member Married members Employed Members

Family Information Summery

8 8

7 7

6 6

5 5

4 4

3 3

2 2

1 1

0 0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Total Family members Male Female

Literate member Married members Employed Members

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4.2.1Frequency Distribution of sales data

Here a frequency distribution of average daily sales of tea stalls owners is presented based on the
collected data from primary research. As the number of sample is 20, so following the 2k = n
formula we get: k = 5, which means we have 5 different classes of data.

Highest observed value = 5700 BDT

Lowest observed value = 2200 BDT

57002200
So, the class interval C = = 700
5

Sells Frequency (f) Tally

2200 - 2900 5 IIIII
2900 - 3600 7 IIIII II
3600 4300 5 IIIII
4300 5000 2 II
5000 - 5700 1 I

Following histogram is representing daily sales information organized in the above frequency
distribution table.

Histogram
2200 - 2900 2900 - 3600 3600 4300 4300 5000 5000 - 5700

8
7
6
5
4
3
2
1
0
Frequency (f)

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Frequency distribution of operating expense

K = 5 using 2k = n formula

Highest observed value = 2700 BDT

Lowest observed value = 1000 BDT

27001000
So, the class interval C = = 340
5

Sells Frequency (f) Tally

1000 - 1340 4 IIII
1340 - 1680 5 IIIII
1680 - 2020 7 IIIII II
2020 - 2360 2 II
2360 - 2700 2 II

Following frequency polygon is representing daily expenses information organized in the above
frequency distribution table.

FREQUENCY POLYGON
8

0
1000 - 1340 1340 - 1680 1680 - 2020 2020 - 2360 2360 - 2700

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4.2.2 Mean, Median and Mode, and other descriptive statistics

In this section mean, median, mode, standard deviation, and variance of daily sales data is
presented. As the number of sample is 20, so following the 2k = n formula we get: k = 5, which
means we have 5 different classes of data.

Highest observed value = 5700 BDT

Lowest observed value = 2200 BDT

57002200
So, the class interval C = = 700
5

Sell Class Midpoint Frequency

( )
( )

(M) (f)
2200 - 2900 2550 5 12750 5 -945 893025 4465125
2900 - 3600 3250 7 22750 12 -245 60025 420175
3600 4300 3950 5 19750 17 455 207025 1035125
4300 5000 4650 2 9300 19 1155 1334025 2668050
5000 - 5700 5350 1 5350 20 1855 3441025 3441025
=69900 =12029500

Arithmetic Mean of Grouped Data; =

=69900
= =20

= 3495 Tk.

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..
Median = 1 + C
.

1 = lower limit of the previous class of the median class = 2900

C = class width of the class = 700

Median Class = = 10
2

5
So, Median of Sales = 2900 + 700 = 3400 Tk.
7

Mode = 1 + c
+

1 = 2900 [lower limit of the previous class of the modal class]

=2 [difference in c.f. of the previous class with the modal class]
=2 [difference in c.f. of the next class with the modal class]
c =700 [class width of the class]

2
So Mode of Sales data is = 2900 + 700 = 2900 + 350 = 3250 Tk.
2+2

2
() 12029500
Variance S2 = = = 633131.6
1 19

() 2
Standard deviation S = 1 = 633131.6 = 795.696

795.696
Coefficient of Variation (CV) = 100 = 100 = 22.766
3495

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The following calculation will present mean, median and mode of Expense Data:

K = 5 using 2k = n formula

Highest observed value = 2700 BDT

Lowest observed value = 1000 BDT

27001000
So, the class interval C = = 340
5

Sell Class Midpoint Frequency

( )
( )
(M) (f)
1000 - 1340 1170 4 4680 4 -561 314721 1258884
1340 - 1680 1510 5 7550 9 -221 48841 244205
1680 - 2020 1850 7 12950 16 119 14161 99127
2020 - 2360 2190 2 4380 18 459 210681 421362
2360 - 2700 2530 2 5060 20 799 638401 1276802
=34620 =3300380

Arithmetic Mean of Grouped Data; =

=34620
= =20

= 1731 Tk.
..
Median = 1 + C
.

1 = lower limit of the previous class of the median class = 1680

C = class width of the class = 340

Median Class = = 10
2

9
So, Median of Sales = 1680+ 340 = 2117.14 Tk.
7

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Mode = 1 + c
+

1 = 1680 [lower limit of the previous class of the modal class]

=2 [difference in c.f. of the previous class with the modal class]
=5 [difference in c.f. of the next class with the modal class]
c =340 [class width of the class]

2
So the Mode of expense data is, = 1680 + 340 = 1777.143
2+5

2
() 3300380
Variance S2 = = = 173704.2
1 19

() 2
Standard deviation S = 1 = 173704.2 = 416.78

416.78
Coefficient of Variation (CV) = 100 = 100 = 24. 077
1731

Average Daily Profit = Average daily sales Average daily Expenses

= 3495 Tk. 1731 Tk.

= 1764 Tk. / Day

We could calculate the mean, median, and variance without using frequency distribution table,
but it would not represent an accurate scenario because of the related weight of an observation
and data set. Below table is showing the result of mean, median, standard deviation of various
variables, which is representing a difference of result obtained from frequency distribution
tables.

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5. Correlation Analysis

Correlation Analysis is the study of the relationship between variables. It is also defined as a
techniques to measure the association between two variables. The Coefficient of Correlation (r)
is a measure of the strength of the relationship between two variables.

The coefficient of correlation in measured by using a standardized formula which is,

()
()
r=
(1)

The following correlation was calculated using Minitab and they are interpreted based on the
produced result of correlation.

Correlation: Avg. Daily Profit, Avg. Daily Sales

Pearson correlation of Avg. Daily Profit and Avg. Daily Sales = 0.896
P-Value = 0.000

Average daily profit is very positively correlated with average daily sales, it suggests that a sale
of one unit has 89.6% positive impact on the profit of a tea stall.

Correlation: Avg. Daily Profit, Operating expenses

Pearson correlation of Avg. Daily Profit and Operating expenses = 0.533

P-Value = 0.015

Average daily profit is positively correlated with daily operating expenses, it suggests that a sale
of one unit has 53.3% positive impact on the profit of a tea stall.

Correlation: Avg. Daily Profit, Daily rent

Pearson correlation of Avg. Daily Profit and Daily rent = 0.143

P-Value = 0.546

Has a very little or poor positive correlation which not very significant at all.

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Correlation: Total Family Income (Monthly), Avg. Monthly profit

Pearson correlation of Total Family Income (Monthly) and Avg. Monthly profit = 0.833
P-Value = 0.000

Total Family income seems to be positively correlated with average monthly profit earned by the
tea stall owner. For one unit of income increase in the monthly family income the monthly profit
of the tea stall owner has 83.3% positive impact on the increase.

Correlation: Total Family Income (Monthly), Employed Members

Pearson correlation of Total Family Income (Monthly) and Employed Members = 0.567
P-Value = 0.009

There is a good uphill correlation between the variables, in other words number of employed
members have a good level of positive impact on the total family income.

Correlation: Total Family Income (Monthly), Other members Income/ monthly

Pearson correlation of Total Family Income (Monthly) and Other members Income/ monthly
= 0.375 P-Value = 0.104

There is a weak uphill positive relation between the variables, other members income has 37.5%
positive impact on the total family income which is not considered as a strong correlation.

Correlation: Total Family Income (Monthly), House Rent for family

Pearson correlation of Total Family Income (Monthly) and House Rent for family = 0.037
P-Value = 0.876

There is very little or no relation between total family income and house rent of the family.

Correlation: Net Present Value, Avg. Monthly profit

Pearson correlation of Net Present Value and Avg. Monthly profit = 1.000
P-Value = *
Net present value is perfectly positively correlated with the average monthly profit, it is very
logical as the net present value is calculated by average monthly profit of the tea stall owner.

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6. Regression Analysis

From the correlation result it is assumed that Total family income of tea stall owners should be
stimulated by average monthly profit, number of employed members, and others members
income. Based on this assumption a regression analysis was run on Minitab 17, and following
result was generated from the regression analysis

Regression Analysis: Total Family versus Avg. Monthly, Employed Mem, Other
member

Analysis of Variance

Source DF Seq SS Contribution Adj SS Adj MS

Regression 3 3743092979 91.56% 3743092979 1247697660
Avg. Monthly profit 1 2837729992 69.41% 2327747588 2327747588
Employed Members 1 872933449 21.35% 129092806 129092806
Other members Income/ monthly 1 32429538 0.79% 32429538 32429538
Error 16 345241821 8.44% 345241821 21577614
Total 19 4088334800 100.00%

Source F-Value P-Value

Regression 57.82 0.000
Avg. Monthly profit 107.88 0.000
Employed Members 5.98 0.026
Other members Income/ monthly 1.50 0.238
Error
Total

Model Summary

S R-sq R-sq(adj) PRESS R-sq(pred)

4645.17 91.56% 89.97% 576814616 85.89%

Coefficients

Term Coef SE Coef 95% CI T-Value P-Value VIF

Constant -6069 4087 (-14734, 2596) -1.48 0.157
Avg. Monthly profit 0.8507 0.0819 (0.6771, 1.0244) 10.39 0.000 1.13
Employed Members 6722 2748 ( 896, 12547) 2.45 0.026 3.41
Other members Income 0.267 0.218 (-0.195, 0.730) 1.23 0.238 3.37

Regression Equation

Total Family Income (Monthly) = -6069 + 0.8507 Avg. Monthly profit + 6722 Employed Members
+ 0.267 others members Income/ monthly

Fits and Diagnostics for Unusual Observations

Total Family
Income
Obs (Monthly) Fit SE Fit 95% CI Resid Std Resid Del Resid HI
5 69200 58078 1838 (54181, 61975) 11122 2.61 3.33 0.156611
13 44240 52949 2747 (47125, 58772) -8709 -2.32 -2.77 0.349696

Obs Cooks D DFITS

5 0.32 1.43426 R
13 0.73 -2.02847 R

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Interpretation of Regression Equation

The Multiple Regression Equation: = a + bX+ bX+ bX

And resulted regression equation is-

Total Family Income (Monthly) = -6069 + 0.8507 Avg. Monthly profit
+ 6722 Employed Members + 0.267 others members Income/ monthly

Here,
a = - 6069
b1 = .8502
X1 = Average monthly profit
= + . + + .

b2= 6722
X2= Employed members
B3=.267
X3= others members income

From the regression model it can be said that profit of the tea stall owner has a significant impact
(85% of family income) on his/her total family income. It also implies that most of the family
members of these tea stall owners are depending on the tea stall business. And there is a fixed
expense of average 6069 Tk. As family or others expenses which has a negative impact on the
total family income. On the other hand every additional employed member in the family added
6722 Tk. To the total family income. And it is also reported in the equation that other members
income amount has 26.7% impact on the total family income of the tea stall owner.

R2 (coefficient of determination) of the model has produced a result of 89.97 % which signifies
that 89.97% of variation in the Total family income of a tea stall owner is explained by the variation
of average monthly profit, number of employed members in the family, and others family members
income amount.

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6.1 Test of Multiple regression model

The global test is used to investigate whether any of the independent variables have significant
coefficients.

Hypothesis

: ==== k=0

: i 0

The test statistic

i. F distribution with k
ii. n-(k+1) degrees of freedom, where n is the sample size

Decision Rule:

Reject H0 if F > ,,1

Critical value of ,,1 = .05,3,2031 = .05,3,16 = 3.2389

Computed F = 57.82

The computed value of F is 57.82, which is in the rejection region. Therefore the null hypothesis
that all the multiple regression coefficients are zero is rejected.

Which means most of the independent variables should have individual impact on the total family
income of the tea stall owner.

6.2 Multicollinearity

i. Multicollinearity exists when independent variables (Xs) are correlated.

ii. Correlated independent variables make it difficult to make inferences about the individual
regression coefficients (slopes) and their individual effects on the dependent variable (Y).
iii. However, correlated independent variables do not affect a multiple regression equations
ability to predict the dependent variable (Y).

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To determine multicollinearity between independent variables we can use fit plot graphs or the
formula of VIF to find whether there are any multicollinearity exist between variables.

The fit plot is not showing any overlapping of fit point so we can assume that there are no
multicollinearity exists between independent variables. To become more certain that there are no
multicollinearity between independent variables, it would be wise to use VIF (Variance Inflation
Factor).

From the Minitab output of VIF it is clear there are no independent variable that has a VIF over
10, so it is clear that there are no multicollinearity exist between independent variables.

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7. Conclusion

After conducting the whole survey and analyzing the survey data it can be concluded that monthly
income of a tea stall owner is in standard level to run their family solvent and perhaps they can
save money for future use if they do their accounting properly. Here is the main problem lies in
their life, they dont know to utilize their earned profit properly due to their lack of financial
management knowledge. Another factor that has been observed is their family is bigger than a
standard family in Bangladesh, and this big family has a huge cost to maintain properly.

It is also been observed that most of tea stall owners have lands in their villages, from this data we
can assume those who have been saving their earned money is been buying lands in their native
village to improve their social status at their native place. From the financial data it can be assumed
that tea stall business has a great prospects if the owners can manage it efficiently. The problems
that people faced while doing the business is the position of the shop, which is temporary and the
government consider it as illegal. So sometimes government forces drive them away to clean the
road side and that is the main fear of these people. As I have stated before that a good number of
people in this country are related in this road side business sector, so in my opinion the government
and other social organization should help these entrepreneurs to sustain their business as they are
helping the countrys economy to move forward. Moreover, if the socio economic status of rootless
people improve the economy of Bangladesh will improve and along with it all the others indicators
of social development would increase. Finally, I would lie to say that road side tea stalls are
helping to improve the socio economic conditions of people who have been migrated from
different places of the country, and these business also helping the total social development of the
country as a whole.

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