FACTORS AFFECTING MARKET KNOWLEDGE OF MANAGERS ON MICRO AND SMALL ENTERPRISES BUSINESS PERFORMANCE: EVIDENCE FROM HADIYA ZONE SNNPRS, ETHIOPIA

Abstract

Micro and small enterprises (MSEs) are becoming broadly known as a main source of job and income in developing countries. However, the failure rate of MSEs in Ethiopia is higher. Therefore the purpose of this study was to examine effect of marketing knowledge of managers on MSEs business performance in Shone Town, Hadiya zone, Southern Ethiopia. The study used simple random sampling techniques. The target population was 245 respondents. The study used a questionnaire to collect the required data from a sample of 150 MSEs managers/owners. The data collected was coded, quantified and analyzed by statistical package for social sciences (SPSS 20). Descriptive and inferential statistics were employed to achieve the objective of the study. The descriptive results showed that market scanning and information acquisition, market information interpretation and market knowledge utilization related factors that affect MSEs business performance in the study area. Also the result of correlation analysis showed that all the independent variables (market scanning and information acquisition, and market knowledge utilization ) have positive relationship with dependent variables ( business performance) significant at p<0.05 level. The result of correlation suggested that any positive change in independent variables will increase the performance of MSEs. The result of multiple regression revealed that R Square 54.3 % is explained by independent factor. Market knowledge utilization factors have the highest effect on MSEs business performance followed by market scanning and information acquisition factors. Moreover, the result suggested that the government responsible bodies, Hadiya zone, and Shone town official have to focus on the independent factors stated above to enhance managers marketing knowledge on MSEs business performance in the study area.