This research Project aims to analyze the impact of informal trade on regularized
tradespeople of “Cotocollao” Parish of Quito Canton, as there is more than 50% of
informal traders in relation to regularized traders. In “Cotocollao” Parish, there are two
ways of performing an economic activity. One is carried out by traders who have met
the requirements to obtain the corresponding municipal permits for the occupation of
public space; they are called regularized traders. Another is performed by tradespeople
who wander in different streets of the parish and are not protected by any agency that
regulates and controls their activity. It has also been determined that informal trade
negatively affects the formal trade as there is unfair competition due to the fact that
products are offered at lower prices. As a result, sales of formal traders as well as their
income are diminished. A training course for informal traders, therefore, is proposed in
order for them to gain some benefits such as: a suitable place to sell their products,
licenses, among others; and this way, the quality of life of people engaged in informal
trade improves.