Production and Marketing Problems of Micro-enterprises in Kerala: Evidence from Kannur District
Production and Marketing Problems of Micro-enterprises in Kerala: Evidence from Kannur District
Dr. Aparnadevi M1, Dr. Jayanthy K C2, Dr. Anil Chandran S3, Mr. Midhun Krishnan P B4
1.Assistant Professor in Commerce, Pazhassi Raja N.S.S. College, Mattanur, Kannur
2.Assistant Professor in Commerce, Pazhassi Raja N.S.S. College, Mattanur, Kannur
3.Assistant Professor in Commerce, Pazhassi Raja N.S.S. College, Mattanur, Kannur
4.Assistant Professor in Commerce, Pazhassi Raja N.S.S. College, Mattanur, Kannur
Corresponding author email: aparnaadevii@gmail.com
Abstract
The Micro, Small and Medium enterprises are the second largest employment generator in India and have an important role in the industrial and economic development of the country. As such, the Government and its agencies provide various supports in the form of subsidies, incentives, formation of industrial areas etc. However, the performance of micro-enterprises has not been fully satisfactory, and a considerable number of such units discontinue their operations due to persistent challenges in the areas of production, marketing, and finance. In this context, the present analytical study is undertaken to examine the nature and extent of production and marketing problems faced by micro-enterprises in Kannur district, Kerala. Primary data for the study were collected from 30 micro entrepreneurs using a structured interview schedule. The data so collected were systematically analysed using appropriate statistical tools such as percentage analysis and mean scores to assess the severity of problems, while inferential techniques including t-test and correlation analysis were employed to examine differences and relationships among the selected variables. The study reveals that rising material prices, high cost of production, and shortage of working capital constitute the major production-related problems faced by micro-enterprises and cut throat competition and high cost of marketing were the main marketing problems of such enterprises. In order to cope up with this situation, new and improved products are to be developed and cost-effective method of production has to be adopted. Likewise in order to face stiff competition and improve sales performance, micro-enterprises should give considerable attention to their product quality and continuous innovation.
Key Words: Production problems, Marketing problems, Micro-enterprises, Production challenges, Marketing challenges, MSMEs, and Micro, Small, and Medium Enterprises.