Effect of Marketing Practices On the Performance of Small and Medium Scale Enterprises

 

INTRODUCTION

Background to the Study

Practitioners and scholars have long believed that Small and Medium Enterprises performance can affect an economy. However, earlier studies in the area of entrepreneurship have focused on examining the growth, survival and performance level of Small and Medium Enterprise (Altenburg & Eckhardt 2016). Small and medium-sized enterprises (SMEs) play a critical part in the economic growth of countries. Consequently, the performance of the SME sector is closely associated with the performance of the nation. Performance is a process or the manner by which the business owner or manager of SMEs executes their functions and crucial element to improving business performance in organizations (Garengo, 2005).

The performance and growth of small and medium enterprises (SMEs) is a major driver and indices for the level of industrialization, modernization, urbanization, gainful and meaningful employment for all those who are able and willing to work, income per capital, equitable distribution of income, and the welfare and quality of life enjoyed by the citizenry (Adeyemi, 2011), because SMEs contribute to employment growth at a higher rate than larger firms, the SME sector is globally regarded as an important force of driving the economic growth and employment creation in both developing and developed countries which is well documented. SMEs (firms with 200 or less employees) makes up the largest business sector in every world economy according to (Smith 2015), and governments around the globe are increasingly promoting and supporting the SME growth as part of their overall national development strategy. SME sector offers linkage development of large industries and essential for a competitive and efficient market apart from the stated contributions. SMEs have remained a harbinger of change and a pivot of economic catalysts in industrialized states as they are in the developing world. In many developed nations, more than 95% of all enterprises are within the SME sub-sector, while 80% of the total industrial labor force in Japan, 57% Germany and 46% in USA small businesses contribute nearly 39% of the country’s national income. In Nigeria, the Small and Medium Scale Enterprises (SMEs) is the driving force and establish an important mainstay of the Nigerian economy (Abdullah & bin Dakar2017).

1.2 Statement of Problem

Marketing problems are simply those marketing factors that can impede, disrupt or hinder the growth, development and expansion of the firm in its effort to satisfy its target market and also create value for the organization. Some of the problems which are relative to their size include epileptic power supply, lack of capital, inefficient management, difficulty in employing skilled manpower, inability to analyze market opportunities, advertising and marketing problems etc.

In particular, the basic marketing problems include inability to apply modern marketing techniques and strategies, difficulty in managing the firm’s advertising and other promotional tools, competition from large firms, lack of adequate research, poor and mundane production technology, lack of adequate financing of marketing activities, poor quality products and problems of standardization, warehousing, inventory control, and poor transportation facilities, branding/packaging, financing and credit facilities, risk bearing among others (Scott, 2018). Therefore the research will also assess the effect of marketing practices on the performance of small and medium scale enterprises in Jimeta Metropolis of Yola North Local Government Area.

Purpose of the Study

The purpose of this study is to assess “the effect of marketing practices on the performance of Small and Medium scale Enterprises” in Jimeta Metropolis of Yola North Local Government Area. With the following specific objectives;

      i.         To assess the various marketing practices applicable to small and medium scale enterprises

    ii.         To identify the impacts of marketing practices on SMEs

  iii.         To suggest better marketing practices that would enhance SMEs.

Significance of the Study

The study will be significant in identifying some of the challenges being faced by small and medium scale enterprise in the marketing of their products in Jimeta Metropolis. It would further help small and medium enterprise practitioner to develop marketing strategies that would translate to improve product performance and increases profitability.

The study can also lead to other researchable variables with a view to find better solution to the effect of marketing practice on the performance small and medium scale enterprises particularly in Jimeta Metropolis, if the finding and recommendation are utilized as supposed, it will create much awareness the marketers in the study are and government functionaries to ameliorate problem of SMEs in the State. 

 

Research Questions

   i.     What are the various marketing practices applicable to Small and Medium scale Enterprises (SMEs)?

    ii.         What are the impacts of marketing practices on SMEs?

  iii.         What are better marketing practices that would enhance SMEs?