OPPapers.com

Factors Affecting Adoption Marketing Strategies In Eldoret Town

AN INVESTIGATION INTO THE MARKETING STRATEGIES IN MICRO AND SMALL ENTERPRISES.A Case Study of Exhibition Hall entrepreneurs in Eldoret Town.

1.0 INTRODUCTION
1.1 BACKGROUND
The informal sector has gained recognition especially in third world countries. It has emerged as a source of increased output, income and employment for marginalized members of the society. This has come in handy considering the dismal performance of the formal sector in these countries. According to Nowak (1988), continents in which the sector has gained recognition are Africa, Latin America and Asia. It has continued to contribute a big portion of the Gross Domestic Product (GDP) in countries that are in these continents.
Micro and small enterprises (MSEs) cut across all sectors of our country’s economy and provide one of the most prolific sources of employment, not to mention the breeding ground for medium and large industries which are critical for industrialization. According to the 2003 Kenya economy survey, employment within the MSE sector increased from 4.2 million persons in 2000 to 5.1 million persons engaged in employment. The sector contributes up to 18.4% of the country’s Gross Domestic Product (GDP). This sector therefore is not only a provider of goods and services, but also a driver in promoting competition and innovation, and enhancing the enterprise culture which is necessary for private sector development and industrialization. Despite the significant role played by the sector, it has continued to experience many binding constraints that have inhibited the realization of its full potential. These include poor access to markets, financial services, unfavorable policy, legal and regulatory environments among others.

According to the Sessional paper No. 2 of 2005 on development of MSEs for wealth and employment creation for poverty reduction, MSEs have a high mortality rates with most of them not surviving to see beyond their third anniversaries. This phenomenon has...