Are informal shoe‐shiners inclined to transmute into a formal sector?—An exploratory study in Hawassa City, Ethiopia

Abstract This study examines the socio‐economic challenges faced by shoe‐shiners in Hawassa City, Ethiopia, and their views on cooperatives as a means to improve their livelihoods. With 50.6% of Ethiopia's urban labour force engaged in the informal sector, being many of them youth, the research underscores the need for targeted policy interventions. Using a mixed methods approach, data were collected from 299 shoe‐shiners via questionnaires and supplemented with interviews from stakeholders. Findings indicate that shoe‐shiners, mostly young and with limited education, struggle with low income, lack of financial support and inadequate workspaces. Despite limited knowledge about cooperatives, many have a positive attitude towards their formation. Younger, more informed individuals show greater support for cooperatives. The study recommends that local governments and stakeholders enhance awareness about cooperatives through educational initiatives, provide training and advisory support, and allocate dedicated workspaces. Additionally, special assistance for vulnerable groups, including orphaned shoe‐shiners, is vital for economic resilience and reducing urban migration. By addressing these challenges, cooperatives can serve as a pathway to improving the socio‐economic conditions of shoe‐shiners, contributing to inclusive growth and poverty reduction in Ethiopia.