Most Small and Medium Enterprises- SMEs thriveinto making better products and services but lack of marketing strategies pull them towards a deficit business, experts have explained.
This comes at the time the government is looking at ways it can help the sub sector that is pushed back by several challengesthus hamperingits expected boost to the privatesector seenas an engine of growth.
Experts say that most of the SMEs succeed in injecting capital for startup and later develop better products, but the challenge remains the ability to market the products and services.
“Marketing is key to business growth and plays a key role in increasing your competitiveness,” said AkliluMulat from Sauder School of Business at the University of British Columbia.
Mulat notes that when entrepreneurs believe in what they are doing and are able to give their business enough time, business prosperity can be realized.
The country SMEs comprise of over 98 percent of the private sectorbusinesses but most of them are stuck in infancy stage due to lack of businessplanning as well as marketing and management strategies.
Francois Kanimba, Minister of trade and industry believes that equipping SMEs with skills in relevant areas would help grow the sector.
“I think when we continue to equip these SMEs with skills and they put them in practice, it will improve their performance as well as profitability,” he noted.
According to central bank statistics, outstanding credit to privatesector grew by 25.3 percent year on year in May 2015 from 15.8 percent in the same period under review in 2014.