Trading in crisis: economic implications of COVID-19 on petty traders in Hyderabad, India

Abstract

Abstract

Purpose The paper aims to assess the economic losses incurred by petty traders in India during the COVID-19 pandemic and explores the differential vulnerability of petty traders across the nature of their businesses and socioeconomic backgrounds. Design/methodology/approach Using primary data collected from 200 petty traders in Hyderabad City, India, the study examines economic losses suffered by them during two waves of the pandemic, across two groups of petty traders – migrant petty traders and traders traditionally engaged with petty trade. Regression analysis is used to understand the factors determining the economic impact of COVID-19 on petty traders. Findings The results indicate that, migrant petty traders' per-day revenue loss in the new city was about INR 1000 higher than that of the traditional petty traders in the old city. However, the relative loss was higher for old-city petty traders. Women petty traders suffered lesser economic losses, mainly because their daily earnings were lower. Changing occupations and taking loans from relatives or friends were the most common coping strategies adopted by migrant petty traders. Originality/value This paper makes a significant empirical contribution in understanding the impact of the COVID-19 pandemic on petty trading by comparing two groups of petty traders – namely, migrant petty traders and the petty traders who were traditionally engaged in this business.