External Marketing Challenges to New Ventures: A Study on MSEs in Dawro Zone, South Ethiopia

International Journal of Economics and Management Studies

© 2019 by SSRG - IJEMS Journal

Volume 6 Issue 11

Year of Publication : 2019

Authors : Shimelis Tamirat Woldekidan

10.14445/23939125/IJEMS-V6I11P116

How to Cite?

Shimelis Tamirat Woldekidan, "External Marketing Challenges to New Ventures: A Study on MSEs in Dawro Zone, South Ethiopia," SSRG International Journal of Economics and Management Studies, vol. 6,  no. 11, pp. 134-141, 2019. Crossref, https://doi.org/10.14445/23939125/IJEMS-V6I11P116

Abstract:

Marketing as problem always in the list as major impediment to the MSEs success. However it was not studied in its own among other detrimental factors in relation to venture performance. Therefore, this study pointed towards unleashing the external marketing challenges that affect the marketing activities and their bearings on venture performance among MSEs in Dawro Zone, of South Ethiopia. The central aim of the study is assessing the marketing challenges of MSEs with specific focus on external marketing environment. i.e., to see marketing context and to evaluate the adequacy of institutional marketing supports. The study adopted cross sectional descriptive study and used survey tools in order to obtain both quantitative and qualitative information to assess marketing challenges of the ventures. Data was obtained from 222 venture operators in 3 districts. Depending on the stratum size of the sector in which the venture engaged individual firm was selected based on lottery method. The respondents were given questionnaire, pilot tested for reliability and found to be 0.812 for Cronbach’s α.  Information that augments data obtained from sector participants has also been collected by semi structured interview. The data from the questionnaire was analysed using Spss V.20. Descriptive statistics was employed to evaluate the status of the marketing context, support and performance of venture. Pearson coefficient of correlation was used to see the relationship of marketing factors with venture performance. It was found that mean score for business environment favourableness µ= 1.638 - 1.835 at 95% confidence level where t-value is 34.63 at 200 degree of freedom. Moreover, µ for the marketing support given by relevant institutions it is 1.4745 - 1.6499 at 95% confidence level since calculated t-value =35.14 at 200 degree of freedom was greater than the critical value. This shown that the enterprises were doing their business activities in challenging marketing contexts and the supports were not considered satisfactory to alleviate contextual problems.  Hence, the average performance as indicated by the mean performance score rated in likert scale from 1 to 5 for the sample is 1.70 with standard deviation 0.72 that is far below the normal average. The relationship of business performance and each of the marketing factors was also positive and its coefficient of correlation (r) was 0.67 with environmental marketing factors and 0.58 with institutional marketing supports and the relationships were statistically significant at 99% level of confidence level. This again showed that there is higher positive relationship of venture performance and the marketing challenges and institutional support. Therefore it is better to bring the enabling environment for the enterprises by making business environment conducive and providing necessary institutional marketing supports.
 

Keywords:

Marketing Challenges, MSEs, Venture Performance, Institutional Supports

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