Challenges and opportunities of micro and small enterprises in Dire Dawa City

Abstract

The purpose of this study is to examine the main marketing challenges and opportunities of micro and small enterprises in Dire Dawa City by considering the product, price, promotion, and place as the independent variables and sales turnover as dependent variables. Methodologically the researchers used cross-sectional descriptive study and targeted 548 enterprises grouped as manufacturing, construction, and urban agriculture. From the total target populations 226 enterprises selected based on stratifies sampling methods. Standardized questioners developed and distributed for those selected enterprises and interviews conducted for experts in Dire Dawa Urban Job Creation and Food security agency. Collected data analyzed and interpreted accordingly. The finding of regression analysis indicates that product, Price, and place have a significant effect on micro and small enterprises sales turnover while promotion has an insignificant effect. In addition to this, micro and small enterprises in Dire Dawa City have many opportunities and challenges. Government support and market demand are the major opportunities while lack of coordination among different government offices and lacking of micro and small enterprise owner’s commitment mentioned as a challenge. Therefore, strong coordination among government officials and the owner’s effort on product quality and branding, pricing and distribution enable micro and small enterprise owners to increase their sales turnover.