Assessment of marketing challenges of new ventures and its impact on performance in the case study of small and micro enterprise in Jimma town

Abstract

The main purpose of this study was to examine the assessment of marketing challenges of new ventures and its impact on performance in the case of small and micro enterprise in Jimma town. The data was collected by structured questionnaire and exploring documents. The collected information is analyzed using quantitative and qualitative method of data analysis. The study was employed both descriptive and explanatory research design. Both primary and secondary data was employed. The primary data needed for this purpose is collected using structured questionnaires and secondary data is collected from the published document and unpublished document. The target population for this study was 186 comprising worker of manufacturing, construction, urban agriculture and service. The study was based on sample size of 123 respondents. The study selected the respondents using purposive sampling technique and proportionate stratified sampling to bring equal representation to each of the sectors. In this study both descriptive and inferential statistics such as mean, standard deviation, correlation, and multiple regression analysis was used through SPSS version 20 software. The finding of the study indicated that there was a statistical and significant relationship between marketing orientation of the SME, marketing capabilities, marketing support and external marketing challenges and opportunities and business performance. This study exposed marketing characteristics of successful enterprises from the experience of those that accomplished excellently in their venture financial and market performance as key success factors. Such ventures that internally exhibited market-oriented business behavior and practices and acquired necessary marketing capabilities, and/or operated in encouraging environmental situations, and obtained adequate institutional marketing supports were succeeded in their performance. Based on this finding the study recommended that, the MFIs have a great responsibility of ensuring the proper use of credit which is an important facility in business acceleration. To achieve this, credits should client -oriented and not product-oriented. Proper and extensive monitoring activities should be provided for clients who are granted loans.