Sub-informal sector: demand and supply side analysis of jebena buna: the case of Jimma city

Abstract

Jebena buna business is a key tool to poverty reduction, women empowerment and equality through income generation, job creation to self and others. The sub-informal sector is totally neglected by responsible authorities and policy makers. The study was conducted through a descriptive design of research and Simultaneous Econometric model using cross sectional data. The study employed stratified random sampling technique to select the respondents with the aim of understanding the flourishing Jebena buna and its functioning. Specifically the study sought to examine the variables such as the amount of cup of coffee sold and consumed, the initial and current capital of the operators, the attitudes of the consumers, the amount of coffee beans consumed per week, the amount of and price of the substitute product and the like. The sample size of the study for supply side and demand side each was 100 respondents from Jebena buna suppliers included in the sampling frame and randomly selected coffee drinkers. A structured questionnaire and administered interview as a data collection instrument was used. The field data were statistically analyzed using SPSS package. The findings indicate that Jebena buna business has a growing potential, plays significant role in women empowerment and equality, poverty reduction, job creation opportunities to the operators and others, domestic market to coffee farmers. Thus, the government of Ethiopia is expected to launch a policy package to enhance this sub-sector. Such policy includes provision of working premises, training about financial management and business management, credit facilitating mission and vision preparation for the sector and in the long run transforming the sector into formal as beyond or the level of star bucks.