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.