Marketing Challenges of Micro and Small Enterprises (MSEs) in Bishoftu Town
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Date
2017-05-05
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Addis Ababa University
Abstract
This study is concerned about marketing challenges of Micro and small enterprises of Bishoftu
town with a view to analyzing their impact on marketing efficiency of the underlying enterprises
and forward best strategies that contributes to their success. Both primarily and secondary data
were collected using structured questioner, and published and unpublished documents
respectively. By using probability sampling technique 342 respondents were selected from 2621
operators. Descriptive and inferential statistics were used for analyzing data. The study revealed
that all the respondents were literate and engaged in manufacturing, constriction, trade, service
and urban agriculture, within the three micro and small enterprises centers found in the study
area. Factors such as marketing skill, legal and regulatory factors, infrastructure, local supply,
and technical support are statistically significant; whereas, marketing skill and access to finance
are not significantly determine the dependent variable, marketing efficiency. The study finds that
there is inadequate market linkage between and among Micro and small enterprises and other
large scale enterprises; despite their high level collateral requirements, credit and saving
institutions were found to be the dominant financing bodies to the Micro and small enterprises. It
has further observed that there is lack of credit facility, shortage of local supply and poor
technical support to micro and small enterprises by concerned institutions.The study recommends
that the Micro and small enterprise development office of the town shall create adequate market
linkage between and among micro and small enterprises, medium and large scale enterprises and
other governmental and non-governmental organizations. The regional government needs to find
alternative financing institutions, design transparent credit facilities and improve policies and
strategies to minimize collateral requirements so as to encourage micro and small enterprises
obtain sufficient fund to finance their businesses. It is also advised that Shortage of local supply
needs to be solved through strengthening the existing suppliers, establishing new micro and small
enterprise suppliers and then creating market linkage with the underlying enterprises
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Keywords
marketing skill, marketing efficiency