Discussion Paper No. 60 of 2006 on Developing a Marketing Framework for Micro and Small Enterprises in Kenya

Abstract

The fact that thirteen years after the formulation of Sessional Paper No. 2 of 1992, the marketing problem of micro and small enterprises (MSEs) still persists implies that the Government is still grappling with market failures that characterize the sector. This is evidence that institutional failure remains one of the most critical hindrances to marketing for MSEs. This has been manifested in inappropriate policy design, weak implementation framework and failure to institute and effectively monitor policy implementation. In the past, the policy interventions failed to address specific needs of the target groups. The lack of coherent monitoring and evaluation stifled any efforts to check progress during policy implementation, identify policy gaps and take corrective action. It has not been able to develop a feedback mechanism and assess the impact. This calls for newer approaches to the marketing problem for MSEs. This study seeks to develop an understanding of the current framework of marketing for MSEs in Kenya. Thereafter, the study develops a model on the basis of case study evidence and best practices. This model proposes a stronger institutional framework with bidirectional feedback loops to facilitate the planning, implementation, coordination and impact assessment of marketing activities within the MSEs, which would enhance networking as well as access to information. This framework creates space for collaborative arrangements between the implementing organizations and other stakeholders as well as stronger linkages between established formal marketing institutions and MSEs. Starting from the observation that the MSE is vast and differentiated with the various enterprise types having hierarchical needs, the framework proposes size-specific interventions.