ANALYSIS OF MARKETING ACTIVITIES OF SMALL SCALE BUSINESS ENTERPRISES IN ABIA STATE, NIGERIA

ABSTRACT

The study examined the Analysis of Marketing Activities of Small Scale Business Enterprises in Abia State, Nigeria. It determine the effect of sales volume on the market performance of the selected enterprises; find out the effect of price and profitability on the market of the selected enterprises. The study made use of primary data which were collected using questionnaire. These collected were analyzed using simple percentages; while the stated hypothesis were tested using multiple regression. After the statistical analyzed, the researcher concluded that product price, market shares, customers satisfaction and sales volume were the significant factors that led to market performance among the selected enterprises in the study area. However, the study reveals that most of the entrepreneurs in Aba state were middle aged people that are married with household size of 5 to 9 persons. They are small scale entrepreneurs who are relatively literature with adequate business skills and experience. That gender, level of education household size, business capital, productivity and profitability rate, interest rate charges were the major determinants in determining the marketing performance of small and medium scale enterprises in Abia State.

TABLE OF CONTENTS

Title                                                                                                          Page

Title Page                                                                                                             i

Declaration                                                                                                          ii

Certification                                                                                                         iii

Dedication                                                                                                           iv

Acknowledgement                                                                                               v

Table of Contents                                                                                                 vi

List of Tables                                                                                                       ix

Abstract                                                                                                               x

CHAPTER ONE

INTRODUCTION

1.1      Background to the Study                                                                            1

1.2      Statement of the Problem                                                                           2

1.3      Objectives of the Study                                                                              3

1.4      Research Questions                                                                                    4

1.5      Statement of Hypothesis                                                                             4

1.6      Significance of the Study                                                                            4

1.7      Scope of the Study                                                                                     4

1.8      Limitation of the Study                                                                               5

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1      Introduction                                                                                               6

2.2     The Concept of Small Enterprise                                                                 6

2.3      The Importance of Small Scale Businesses                                                  7

2.4      The History of Small scale Business Enterprises in Nigeria                               9

2.5      The Contributions of SMEs to the Nigerian Economy                                  11

2.6      Motives for Establishing a Small Scale Business Enterprise                               12

2.7      Limitations and Prospects of SMEs Business Development in Nigeria         14

2.8     Government Contributions towards Small Scale Business Enterprises              18

2.9     Entrepreneurship and Small Business Failure                                               23

2.10   Entrepreneurial Skills and Small business Development                                23

2.11    An overview of Marketing and Market Performance                                   25

CHAPTER THREE

RESEARCH METHODOLOGY

3.1      Research Design                                                                                        29

3.2      Study Area                                                                                                29

3.3      Population of the Study                                                                              29

3.4      Sampling Techniques                                                                                 30

3.5      Determination of Sample Size                                                                    30

3.6      Method of Data Collection                                                                         31

3.6.1  Instrument                                                                                                 31

3.6.2   Data Source                                                                                               31

3.7      Method of Data Analysis                                                                            31

3.8      Model Specification                                                                                   32

3.9      Validity                                                                                                     33

3.10    Reliability                                                                                                  33

CHAPTER FOUR

RESULTS AND DISCUSSION

4.1      Socio-Economic Characteristics of the Respondents                                    34

4.1.1   Distribution of Respondents according to Age                                             34

4.1.2   Distribution of Respondents according to Marital Status                               35

4.1.3   Distribution of Respondents according to Household size                               35

4.1.4   Distribution of Respondents According to Level of Education                      36

4.1.5   Distribution of Respondents According to Years of Business Experience    37

4.1.6   Distribution of Respondents According to Earned Income                                38

4.1.7   Determinants of Borrowing Behaviours of Entrepreneurs (Via Sectorial

Choice Analysis)                                                                                        39

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1      Summary                                                                                                   44

5.2      Conclusion                                                                                                44

5.3      Recommendations                                                                                      45

References                                                                                                 47

Appendix

LIST OF TABLES

Table 4.1:     Distribution of Respondents by Age                                                 34

Table 4.2:      Distribution of Respondents according to Marital Status            35

Table 4.3:      Distribution of Respondents by Household Size                                35

Table 4.4:     Distribution of Respondents according to Problems facing Small

Scale Enterprises                                                                             36

Table 4.5:     Distribution of respondents by Level of Education 

Table 4.6:      Distribution of Respondents according to Business Experience    37

Table 4.7:     Distribution of respondents according to earned income from

Business Activities                                                                          38

Table 4.8:     Distribution of respondents according to average amount of

loan borrowed from diverse financial sources they borrowed from        39

Table 4.9:     Distribution of respondents according to interest rate of the

loan borrowed                                                                                  40

Table 4.10:    The factors affecting selected small scale enterprises in Abia State     41

their impact on marketing performance of entrepreneurs in

were examined using the multiple regression analysis. The result

is shown on table 4.11

CHAPTER ONE

INTRODUCTION

1.1      Background to the Study

The concepts of small scale businesses has been  an issue for debate as different individuals, nation and groups defines it to suit their own systems and purposes.

Some authors defined small scale business from the stand point of its relevance in the development of any economy.

However, The Central Bank of Nigeria Magazine defines small scale business enterprise in terms of the business annual turnover, which accordingly, must be is than N500,000, the small scale industries established with capital investment totaling N 250,000, and staffed with between 50 and 150 employees qualify as mall scale industries.

The confusion associated with the definition of small scale business can be reduced de-emphasizing factors associated with monetary terms and speaking on general Thus small scale business can be summarized as having the following characteristics:

The economy development of any nation is improved largely by its enterprising. The characteristic emerges forth interplay of behavior and activity of entrepreneurs who with their small scale businesses constitute a vital sector in the economy of any nation (Okon, 2003).

Market performance has always been a cause of concern to small scale business in Nigeria in particular and the entire world at large. In recent times, lack of proper adoption of marketing and marketing concept has led to business failures. In Abia it has assumed greater dimension. Consequently, quite a lot of small scale enterprises have been forced out of business.

The analysis of strategic factors affecting market performance small scale nesses enterprises in Abia State in essence, the areas of the operation of this work are considered through some selected retailing and wholesaling business in ion to theme of this study in anticipation that this work will contribute towards ting the market performance metrics and tools; as well as problems of market performance of small scale businesses and providing possible solution to them.

1.2      Statement of the Problem

The marketing problems faced by small scale business all over the world is so much and can be best appreciated by a short survey of the amongst this sector of economy in the developed and developing countries.

In the United States in the 1950's, 250 small scale businesses failed every week out of every five enterprises disappeared within a decade (Adewunmil, 1986:6). The story is the same today in Nigeria, though there is no accurate data of small scale business failure.

Marketing problems such as sales growth, profitability, number of customers, market share,   competition,   consumer   cum   buyer   behaviour   changes   and government policies among others have been identified as some of the basic marketing problems of small scale businesses (Iwok 2007). Marketing functions need somebody who has adequate marketing; unfortunately, most of the small ness owners often overlook the necessity of employing marketing personnel lit day they are faced with series of problems which has reduced their chance of market performance. This research project is therefore focused on the market performance aspect of these problems.

1.3      Objectives of the Study

The general objective of this study is to examine the analysis of marketing performance of small-scale business enterprises in Abia State.

However, specific objectives of this study are to:

i)        determine the effect of sales volume on the marketing performance of small scale businesses.

ii)       determine the effect of profitability on the marketing performance of small scale business enterprises.

iii)      determine the effect of the customer satisfaction on the marketing performance of small scale business enterprises.

iv)      determine viable strategies for addressing marketing problems of small scale business enterprises especially, in Abia State.

1.4      Research Questions

To realize the objectives of this study, the following research, questions will be used;

i)        What are the effect of sales volume on the marketing performance of small businesses?

ii)       What are the effect of profitability in the marketing performance of small scale enterprises?

iii)      What are the effect of the customer satisfaction on the marketing performance of scale business enterprises?

iv)      What are the viable strategies for addressing marketing problems of small scale business enterprises especially, in Abia State?

1.5      Statement of Hypothesis

H₀:     There is no significant relationship between the socioeconomic characteristics of the respondents and the market performance of Small scale business enterprises in Abia State.

H₀₁:    There is no significant relationship, between customer satisfaction, sales time, price and profitability of small scale enterprises in Abia state.

1.6      Significance of the Study

The outcome of the study will help the government, policy makers and financial intermediaries on the contribution of marketing performance towards entrepreneurship. Besides, the   findings   would   be   useful   to   advocates   of entrepreneurship who   can   rely   on   it to   make   a   case   of productivity   for entrepreneurship to improve their business. Furthermore, the study will help other stakeholders particularly small and medium enterprises development agencies of Nigeria in reviewing their policies towards entrepreneurship in order to achieve efficiency and offer value added financial services.

1.7      Scope of the Study

The research work will focus on the analysis of marketing performance of small scale enterprises.

1.8      Limitation of the Study

The study was designed to appraise the accounting problems of small scale of some selected small-scale enterprises in Abia State. However, due to and time constraints it was limited to only three small-scale enterprises. Another limiting factor is the apparent lack of information in this area of study because most of the works done in small scale business problems are not related to aspects of marketing problem but to other areas. This the date used for this study was to be gotten directly from the small  scale business practitioners, entrepreneurs and other related organizations but they were not easy to come by.

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