EFFECTS OF FIRM LEVEL CHARACTERISTICS ON MARKETING EFFECTIVENESS AMONG MICRO AND SMALL ENTERPRISES IN KITUI COUNTY – KENYA

Abstract

The Micro and Small Enterprises play an important role in the Kenyan Economy, its role and importance in a knowledge-based economy has been highly appreciated and acknowledged. Moreover, in the present economy, Micro and Small Enterprises are facing tremendous challenges and threats to survive in a competitive environment. The study examined the effects of firm level characteristics on marketing effectiveness among Micro and Small Enterprises in Kitui County in Kenya. The study was guided by the following specific objectives; To determine the influence of financial resources on marketing effectiveness among Micro and Small Enterprises in Kitui County; To examine the influence of human resource on the marketing effectiveness among Micro and Small Enterprises; To determine how technology affects the marketing effectiveness among Micro and Small Enterprises; To establish the effects of firm size on the marketing effectiveness among small and micro enterprises and to determine how the managerial skills affect marketing effectiveness among small and micro enterprises in Kitui County. The study was conducted on the basis of Resource, Human capital theories, Dynamic capabilities and Technology diffusion theory. The research used cross sectional survey. The target population was 3,200 Micro and Small Enterprises in Kitui County in the main subcounties of the County such as Kitui, Mutomo and Mwingi town. The sample size was 342 and a total of 241 respondents interviewed which represented 70% .Descriptive statistics was used and hypothesis testing done. Data was collected using both closed and open ended questionnaires. The study found that financial resources, human resources, firm size, managerial skills and technology positively influence marketing effectiveness among Micro and Small Enterprises in Kitui County. The study concluded that financial and human resources, firm size, managerial skills and technology are significant determinants of marketing effectiveness among small and medium enterprises in Kitui County. Lack of information on where to source for financial resources, restrictive lending offered by commercial banks, lack of track record required by the banks and financial institutions, lack of appropriate structure for dealing with Micro and Small Enterprises adversely affecting Micro and Small Enterprises in Kitui County. The study further concluded that through the recruitment practices adopted, training that the marketing team undergoes and strategies adopted in retaining a competitive marketing team positively influence marketing effectiveness among Micro and Small Enterprises in Kitui County. Adoptions of new technology such as the web, mobile phones, social media, and customer relationship management systems have greatly affected effectiveness of marketing for Micro and Small Enterprises in Kitui County. The study recommended that owners/ managers of Micro and Small Enterprises must focus on these firm level characteristics for Micro and Small Enterprises growth and stability. The study recommended and concluded that this will reverse the high failure rates of Micro and Small Enterprises thus Kitui County.