A study on Marketing Deficiencies of the Small Business in Sri Lanka. (An Empirical study of Small Business in the Galgamuwa Area in Kurunegala District)

Abstract

Small businesses have been recognized as an important strategic sector for generating high economic growth and reducing unemployment, inequality and poverty. Today, we can see a trend of market orientation in small business firms. This paper discusses the basic marketing deficiencies of small business firms in Sri Lanka with special reference to Galgamuwa area in Kurunegala district. Then main research problem was to identify Marketing Deficiencies in the small business firms related to customer need identification, goods & service production, branding, packaging, pricing, promotion, distribution & selling .Data was collected through both primary & secondary sources. Primary data was gathered by administrating a structured questionnaire by interviewing employees, small business owners, officers of various small business supportive organizations and observing small business firms. For primary data collection, 20 small business owners and 20 employees were selected from the respective areas by using random sampling method. This study found that basic marketing activities such as customer need identification, goods & service production, branding, packaging, pricing, promotion; distribution & selling are not properly practiced in most of the small business firms. Thus, most small business firms do not have a proper marketing plan for future development as a viable business. So, Small business lacks proper customer needs & wants identification, maintaining poor product quality management in the production process, poor branding process, inappropriate price setting, lack in practice of promotion, unplanned distribution and selling efforts etc. Therefore, most of the small business firms do not function profitably due to lack of planning of proper marketing strategies. Further, small businessmen can not realize their deficiencies within their practice. This paper concludes that the growth of small business can be developed by excellent marketing practices in the small business firms in Galgamuwa area in Sri Lanka.