Marketing research in micro and small enterprises:A case study of enterprises in the Nairobi Central Business District

Abstract

This study is meant to be a contribution by part of a wider group of scholars towards determining the main factors that influence the growth of MSEs. Most studies in the past had tended to over concentrate on the aspect of credit provision to MSEs to the detriment of other equally important factors. In this study we chose to concentrate on the subject of Marketing Research. The main objectives of the study were: 1. Determine the proportions of Micro and Small business enterprises (MSEs) in the CBD that Utilize marketing research. 2. Determine the importance attached to marketing research by MSE entrepreneurs. 3. Determine the extent of use of Marketing Research in terms of the following: a. Product design studies b. Market potential studies c. Advertising/promotion studies d. Distribution Research e. Post purchase customer satisfaction surveys f. Competitor surveys 4. Determine the constraints to the utilization of marketing Research 5. Determine if any Relationships exist between size of business and extent of use of marketing Research. 6. Determine if there is a relationship between utilization of marketing research and sales turnover Our sample was drawn from MSE entrepreneurs in the NCBD. Data was mainly collected using semi-structured questionnaires. Our data analysis tools consisted of descriptive statistics and non-parametric tests. Our results showed that although MSE entrepreneurs see marketing research as important, and indeed practice it to some extent, financial constraints and general lack of direction on how to conduct marketing research, impede their abilities to gather marketing information better. We have thus recommended a three-pronged partnership among key stakeholders, namely the government, the MSEs and the medium and large enterprises, each with specific mutually beneficial roles, which if effected properly will result, we believe, in benefits for all these classes of stakeholders. Finally we do hope that more research especially on other important business support services will be effected, we also hope that research will be done directed at consumers of MSE products seeking their attitudes on services offered by MSE entrepreneurs.