Marketing Practices and Problems of Micro and Small Enterprise [MSEs] in Addis Ababa

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Date

2010-02

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Addis Ababa University

Abstract

The purpose of this study is to assess the marketing practices and p roblems of MSEs in Addis Ababa. The method used to conduct this research is descriptive survey that assesses MSEs in three sub cities, specifically concerned on construction, metal and wood work sub-sectors. The subjects of the study were 315 operators, 69 experts and 5 officials in Arada, Yeka, and Kirkos sub-cities. In addition, Regional MSE Bureau and micro finance institutions have included as the study subject. Accordingly, respondent sampling was carried out through purposive, stratified and available sampling techniques, The data obtained from these sample respondents through questionnaires, interviews and observation of actual setting and document analysis. The data that have been collected from the sample respondents were analyzed using percentage and frequency counts, weighted mean and t-test analysis. The finding has also indicates that MSE products were not competitive in the world market in terms of quality and productivity. It is also revealed that MSEs face, in order of severity, problems related to legal procedw'es through f or.'niug cooperatives, problems in fa cilitating working premises, problems ill securing credit from micro finance institutions and problems related to financing. Further more, the government did not make adequate level of supportive follow up and monitoring services to MSEs. To this end, it recommended that certain mechanism should be created and implemented for MSEs to easily access for raw materials and supplies. In addition, the required amount of working capital has to maintain for the smooth flexibility and work for the enterprises. Further more, the government basically should set up a mechanism for supportive follow up and monitoring services that helps to_achieve noticeable progress and to take timely counter measures for the existing problems

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Keywords

Marketing Practices and Problems

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