Category : AJBED: Volume 3, Issue 5
EFFECTS OF PROMOTIONAL STRATEGIES ON THE GROWTH OF SMALL SCALE ENTERPRISES IN SOUTHWEST, NIGERIA
aALABI ABIDOYE OLUFEMI, bAKILAPA T. P., KANMODI A. A., cBAMIDELE B. O. and dOJO O. O.
a Department of Business Education, Osun State College of Education Ila-Orangun (OSSCE)
b Department of Agricultural Education, OSSCE, ILA-ORANGUN
c INTERNAL AUDIT, OSSCE, ILA-ORANGUN
d REGISTRY, OSSCE, ILA-ORANGUN
Acknowledgement: We gratefully acknowledge Tertiary Education Trust Fund, Nigeria (TETFUND) for funding this research
This study was undertaken to investigate the effect of promotional strategies on the growth of Small Scale Enterprises in Southwestern Nigeria. Specifically, the study examined the various promotional strategies used by SSEs in Nigeria, investigated the factors that influenced the choice of the promotional strategies adopted by SSEs, and evaluated the effect of promotional strategies on the growth of SSEs in the country. Multi stage sampling was used for the study. At the first stage, three states were purposively selected in Southwest, Nigeria namely: Lagos, Ogun and Osun. This is because they are the most populous states in the region (2006 National Population Commission) and have the largest concentration of small scale enterprises and more developed industrial centres. At the second stage, purposive sampling technique was used to select four Local Government Areas (LGAs) prominent in manufacturing and service enterprises. At the third stage, three communities per Local Government Area were randomly selected. Finally, 20 entrepreneurs/managers of SSEs were randomly selected totalling 720 entrepreneurs. Data on variables such as promotional strategies used by SSEs, factors that influence the choice of SSEs used by SSEs and effects of promotional strategies on growth of SSEs were sourced from the respondents. Data were analysed using descriptive and inferential statistics. The results of the study showed that 20.6%, 26.3% and 21.9% used television frequently, sometimes and rarely respectively while 31.3% of the respondents never used television as a promotional strategy to enhance sales in the study area. About 16.3% and 32.5% frequently and sometimes respectively used outdoor promotional strategy while 46.3% and 5.0% never and rarely respectively used outdoor promotional strategy. It was revealed that 26.3%, 26.9%, 16.3% and 34.4% of the study respondents sometimes used display, billboard, radio and gift items promotional strategies respectively to increase their sales while 35%, 17.5%, 26.3% and 43.1% of the respondents frequently used display, billboard, radio and gift items respectively. 48.8%, 13.8%, 28.1%, 12.5% and 38.8% frequently made use of promotion, print media, and broadcast, out of home and direct advertising to create awareness of their product. The factors that influenced the choice of promotional strategies adopted by SSEs revealed that: entrepreneurs (58.7%) believed that business management approach 86% towards the growth of their business influenced their choice of promotional strategies adopted by them. Adequate firm resource for growth 81.3%. Effect of Promotional Strategies used on sales performance of Small Scale Enterprises shows that sales performance was on the increase as recorded among SSEs that used PS in the form of increased turnover. This was followed by larger market coverage that is due to the creation of greater awareness leading to more patronage then competitive advantage. The study concluded that promotional strategies enhance sales performance of SSEs, nonetheless, small scale enterprises in Southwestern Nigeria did not make good use of these promotional strategies to their advantage. Driven by the findings in this research, SSEs have a long way to go especially in the use of promotional strategies to play the crucial role of contributing to the growth and development of the economy.
Keywords: Small scale enterprises, promotional strategies, effects and growth performance