Market Justification for Policy on Small Enterprise Development

The process of liberalization in developing economies and the increasing competition faced by Small Enterprises raise crucial policy issues on small enterprise development. The policy maker in developing economies like India are faced with the option of supporting small enterprises through steps lik...

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Bibliographic Details
Published in:Small business economics 2004-03, Vol.22 (2), p.111-119
Main Author: Velayudhan, Sanal Kumar
Format: Article
Language:English
Subjects:
Brands
Business structures
Business studies
Butter
Competition
Competitiveness
Consumers
Corporations
Customer satisfaction
Economic development
Economic justification
Economic reform
Economics
Employment
Enterprises
Exports
Flexibility
Government policy
India
Industrial production
Liberalization
Market
Market positioning
Market share
Market shares
Marketing
Marketing strategies
Milk
Niche marketing
Small & medium sized enterprises-SME
Small and medium sized enterprises
Small business
Small businesses
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Summary:The process of liberalization in developing economies and the increasing competition faced by Small Enterprises raise crucial policy issues on small enterprise development. The policy maker in developing economies like India are faced with the option of supporting small enterprises through steps like reserving certain industries or by developing their ability to compete in niche markets. Enterprise level decisions are also critical for survival of these organisations. Selecting from these options require an understanding of the advantages that small enterprises have over the large enterprises. The advantage of flexibility and responsiveness to consumer needs of small enterprise is expected to result in customer satisfaction in a market with differing consumer needs. The hypothesis relates customer satisfaction to market share in a heterogeneous market. A field study is carried out among consumers of packaged butter in a state in India. The results do not indicate customer satisfaction with lower market share in a heterogeneous market.
ISSN:0921-898X
1573-0913
DOI:10.1023/B:SBEJ.0000014449.57083.0f