Market orientation and poverty reduction: A study of rural microentrepreneurs in Ghana

ABSTRACT

We draw on the quality of life theory and government economic development policies that focus on entrepreneurship for a theoretical backdrop to investigate the consequences of market orientation among microentrepreneurs in Ghana. We use qualitative data from 28 microentrepreneurs involving participant observation techniques and the storytelling approach to elicit rural microentrepreneurs’ oral accounts of their business practices and relationship with rural customers. Overall, we find evidence that rural microenterprises use market orientation strategies, albeit indigenous and informal that contribute to livelihood development, poverty reduction, higher quality of life, and rural economic development. The results yield rare examples of how microentrepreneurs in rural areas nurture customer loyalty by developing friendship with their customers. Also, competitor orientation is accomplished through customer-initiated intelligence-gathering efforts while inter-functional coordination occurs informally and ad hoc. Furthermore, microentrepreneurs attribute their business performance to their innovative strategies in surviving a competitive environment. The study concludes by identifying additional avenues government can take to alleviate poverty in rural areas and improve the quality of life, such as improving infrastructure.

KEYWORDS:

• market orientation
• rural microenterprises
• rural poverty reduction policy
• quality of life
• Ghana

Acknowledgement

We thank the Editor, Professor Moses Kiggundu and the Senior Associate Editor, Professor Bruce T. Lamont for their constructive criticisms, suggestions, directions, and encouragement throughout the review process. We are indebted to the anonymous reviewers for their close reading and constructive criticisms. We express our sincerest gratitude to all the microentrepreneurs and owner-managers for their time during the face-to-face interviews. In particular, we thank the following owner-managers and microentrepreneurs for their warmth and time: Ante Birago, Mr. Agyei, Mr. Kwaku Emma, Ms. Ampem, all of Akim Awisa and Ante Dorothy, Pat, and all of Akim Oda.

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes on contributors

Charles Blankson is a Professor of Marketing in the Department of Marketing, Logistics, and Operations Management, G. Brint Ryan College of Business, University of North Texas, Denton, Texas. His current research interests include marketing strategy – positioning and brand management, industrial marketing, small business marketing, rural and urban poverty reduction, marketing practices in sub-Saharan Africa, and international/multicultural marketing. Charles is a member of the editorial review board of Industrial Marketing Management, International Journal of Operations and Production Management, International Journal of Bank Marketing, and Journal of African Business. His research has appeared in Journal of Advertising Research, Journal of Public Policy and Marketing, Journal of Macromarketing, Journal of Business Research, Industrial Marketing Management, International Journal of Operations and Production Management, European Journal of Marketing, International Journal of Bank Marketing, Journal of African Business and many others.

Dr. Julius Nukpezah is an Assistant Professor of Public Policy and Administration in the Department of Political Science and Public Administration at the Mississippi State University. His current research focuses on state and local government finance and international economic development. His previous articles appeared in Public Budgeting and Finance, Public Money and Management, International Journal of Public Administration, Journal of African Business, among others.