ABSTRACT
This study explores the strategic factors affecting
the market performance of small scale business enterprises in Umuahia, Abia
State. The main objective is to identify and analyze these factors and the
associated problems hindering the smooth running of marketing activities and
strategies within these enterprises.
Employing a descriptive research design, data is
collected through questionnaires administered to small scale enterprises, their
management, and employees in Aba and Umuahia. A sample size of 133 is determined
using Taro Yamene's method.
Analysis of the collected data involves simple
percentages and multiple regression models. Objectives such as analyzing
socioeconomic characteristics, identifying marketing problems, and assessing
the effects of sales volume, profitability, and customer satisfaction on market
performance are addressed.
Findings reveal several key insights: Market
performance information analysis is underutilized in management and investment
decisions among small business enterprises; Market share, customer
satisfaction, increase in market share, and total revenue positively influence
market performance, while annual marketing costs have a negative impact; Effective
sales force personnel and customer satisfaction are crucial for addressing
marketing problems and improving market performance.
In conclusion, the study underscores the importance of
utilizing market performance information in management decision-making to
enhance the performance of small scale business enterprises. Recommendations
include: Market performance should inform marketing decisions and guide
strategic planning; Small enterprises should invest in competent sales force
personnel to tackle marketing challenges effectively; Customer satisfaction
should be prioritized as a key metric for driving business vision and mission.
TABLE
OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1 Background
of the Study
1.2 Statement
of the Problem
1.3 Objectives
of the Study
1.4 Research
Questions
1.5
Research Hypothesis
1.6 Scope
of the Study
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Conceptual
Framework
2.2 Definitions
of Small and Medium-Sized Enterprise
2.3 The
Importance of Small Scale Businesses
2.4 The
History of Small scale Business Enterprises in Nigeria
2.5 The
Contributions of SMEs to the Nigerian Economy
2.6 Motives
for Establishing a Small scale Business Enterprise
2.7 Limitations
and Prospects of SMEs Business Development in Nigeria
2.8 Government
Contributions towards Small Scale Business Enterprises
2.9 Entrepreneurship
and Small Business failure
2.10 Entrepreneurial
Skills and Small business Development
2.11 An overview of Marketing and Market Performance
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design
3.3 Population of the Study
3.4 Determination
of Sample Size
3.5 Method of Data Collection
3.5.1 Questionnaire
3.5.2 Data Types and Sources
3.6 Sampling Techniques
3.7 Method of Data Analysis
3.7.1 Model Specification
3.8 Validity and Reliability
CHAPTER FOUR
RESULT AND DISCUSSION
4.1 Social-Economic Characteristics of the
Sample
4.2 Distribution of Respondents According to
Labour Size
4.3 Distribution of Respondents According to
Level of Income
4.4 Distribution of Enterprises according to
the Means of Production
4.5 Capital Investments of the Selected
Enterprises in Aba and Umuahia
4.6 Breakdown of How the Enterprises capital
are Structured
4.7 Analysis of the Determinant of Labour
Sourcing Faced by the Enterprises
4.8 Analysis of the Enterprises According to
Source of Labour
4.9 Testing of Hypotheses
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary
of Findings
5.2 Conclusion
5.3 Recommendations
REFERENCES
APPENDIX: QUESTIONNAIRE
CHAPTER
ONE
INTRODUCTION
1.1 Background of the Study
The concepts of small scale businesses has been an
issue for debate as different individuals, nation and groups define it to suit
their own systems and purposes. Some
authors define 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 less than N
500,000, the small scale industries established with capital investment
totaling N 250,000, and staffed with
between 50 and 150 employees qualify as small scale industries. Interestingly,
the Nigeria Companies and Allied Matters Decree 1990 Section 376
characterized small companies with the
following:
1. A private company limited by shares should be the business turnover for
the year.
2. The net assets value of the company is not more than N1 million or such amount as may be fixed by the commission.
3. None of the members is an alien.
4. None of its members of the company is a government agent and nominee.
5. The directors of the company hold not less than 50% of the equity share
capital of the company.
The confusion associated with the definition of small
scale business can be reduced by de-emphasizing factors associated with
monetary terms and speaking on general criteria. Thus small scale business can
be summarized as having the following characteristics:
(i)
Likely to be a sole
trader, partnership or print company.
(ii)
Likely to operate on only
a single local site with a very few member of departments.
(iii)
Having independent
management who are chief executives of the enterprise.
(iv)
Having small capital
outlay and mainly furnished by the owners of the business.
(v)
The size is small
relatively and services as a niche in the market.
Economic development of any nation is improved largely
by its enterprising spirit. 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).
A lot of small scale businesses and programmes were
put together in other to promote the standard of living of a common man in our
societies. The small scale business is one way through which an average
Nigerian can be made self reliant. The importance of small scale businesses in their potential for
creating employment most of the businesses in this sector are labour intensive
and collectively serve as a major source of employment opportunities.
Encouragement of small scale businesses can also help
to correct the unhealthy in-balance in the rate of economic growth between the
rural and urban areas which will mean an integrated rural development. This
most certainly will aid in checking rural-urban migration. The pioneering spirit that underlines our
success as a nation will continue to flourish as long as the small business man
remains the main stay of our economy and our society (Young, 1977).
This work will be better appreciated as we shall attempt
an appraisal of the adoption of marketing and the indices of market performance
of small scale enterprises in Abia State.
Market performance is the term used to measure the
performance of an enterprise in relation to other enterprises in a particular industry
or market. It is through market performance that we can be able to ascertain
the growth rate, profitability, sales volume, market share, number of customers
etc (Roger, 2004)
Market performance has always been 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 state, 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 businesses enterprises in Abia State in essence, the
areas of the operation of this work are considered through some selected
retailing and wholesaling business in relation to theme of this study in
anticipation that this work will contribute towards locating 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
Marketing problems such as sales growth,
profitability, number of customers, market share, competition, consumer cum
buyer behavior 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 understanding. Unfortunately most of the
small business owners often overlook the necessity of employing marketing
personnel and today they are faced with series of problems which has reduced
their chance of market performance. These are cost of operation, lack of market,
competition among others, this research project is therefore focused on the
market performance aspect of these problems.
1.3 Objectives of the Study
The main objective of this study is to examine the
strategic factors affecting the market performance of small scale business
enterprises in Umuahia, Abia State. The purpose of this study is to identify
and analyze strategic factors affecting market performance of small scale
enterprise; and problems that mitigate the smooth running and marketing
activities and strategies of the business.
However, specific objectives of this study are to:
(i) Analyze the socioeconomic characteristics
of the respondents.
(ii) Identify marketing problems facing
small scale enterprises in Umuahia, Abia State.
(iii) Determine the effect of sales
volume on the market performance of small scale businesses.
(iv)
Determine the effect of profitability in the market
performance of small scale business enterprises.
(v) Determine the effect of the
customer satisfaction on the market performance of small scale business
enterprises.
(vi) Determine viable strategies for
addressing marketing problems of small scale business enterprises especially,
in Umuahia, Abia State.
1.4 Research Questions
To realize the objectives of this study, the following
research questions will be used;
(i) What are the socioeconomic characteristics of the respondents?
(ii) What are the marketing problems facing small scale enterprises in Umuahia,
Abia State?
(iii) What is the effect of sales volume on the market performance of small
scale businesses?
(iv)
What is the effect of profitability in the
market performance of small scale business enterprises?
(v) What is the effect of the customer satisfaction on the market performance
of small scale business enterprises?
(vi) What are the viable strategies for addressing marketing problems of small
scale business enterprises especially, in Umuahia, Abia State?
1.5 Research Hypothesis
H01: There is no
significant relationship between socioeconomic characteristics of the
respondents and market performance of Small scale business enterprises in
Umuahia, Abia State.
H02: Sales growth,
revenue, product price, increase in market share and customer satisfaction are
not significant in the profitability of small scale enterprises in Umuahia, Abia State.
1.6 Scope of the Study
The outcome of the study will
help the government, policy makers and financial intermediaries on the
contribution of market 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.
1.8. Limitation of the Study
In carrying out this research, a lot of things
hindered an investigation of the research, they include:
1. Time:
This project was written along side with other academic activities or work, the
researcher discipline which was his responsibility to pass through; again
limitation as a result of lack of materials to consult, materials used for the
study was to what the student could afford.
2. Finance:
With the present economic situation in the country (Nigeria) the researcher
spent lots of money during the research work.
3. Transportation:
Travelling from one place/village to the other entailed making such journey on
foot, motorcycles etc.
4. Finally, the problem of data collection.
Those who were in the position to provide the information necessary for the
research really did not corporate with the researcher any time the researcher
was there. However
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