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The Marketing Management of Small and Medium Handloom-Weaving Enterprises in Region 1

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The Marketing Management of Small and Medium Handloom-Weaving Enterprises in Region 1
THE MARKETING MANAGEMENT OF SMALL AND MEDIUM HANDLOOM-WEAVING ENTERPRISES IN REGION 1 Rosario C. Garcia, DBA Small and medium enterprises contribute substantially to the economic growth of a developing country in terms of job creation, capital mobilization and increased revenues in the form of taxes. Salazar (1997) contended that small and medium enterprises (SMEs) play a critical role in the achievement of global competitiveness since it comprised 95% of the total number of business establishments in the Philippine economy. According to Satake (1998), they employ more than 40% of the labor force in the manufacturing sector alone. Further, Ibon Facts & Figures (October 1999) report that SMEs are remarkably skillful in maximizing the use of scarce capital resources and are able to forge partnerships with large firms by way of supplying indigenous raw materials in unprocessed or semi-processed forms. Handloom weaving is an industry that is mostly operated by small and medium entrepreneurs. However, despite the efforts of agencies providing support to SMEs, the handloom-weaving industry in Region 1 has not taken off compared to other existing industries such as the furniture, pottery, handicraft, preserved foods, and the like. Other industries have set foot on global The one in the Cordillera marketing unlike handloom-weaving industry.

Autonomous Region particularly by Narda Capuyan has earned international appeal due to product innovation. market segmentation, and channel of distribution. In Region 1, global marketing is indirect exportation, which is not aggressive. A study, therefore, is necessary to determine the reasons for a passive view on exportation. With the onset of mechanization of production, the influx of imported products, and stiff competition, the marketing of handloom woven products in the local sector is being affected. The marketing management of selected small and medium handloom-weaving enterprises needs assessment to reveal how marketing



References: CITC Assists Handloomweaving Villages in the Countryside (2001) Developing Rural Industries and Village Enterprise (DRIVE). (2001) Salazar, Melito Jr. (March 28, 1997). “SME & Global Competitiveness.” Undersecretary of DTI, /Seminar held at Saint Louis University, Baguio City. Salazar, Melito (no date). “Small & Medium Business Improvements in the Philippines. Institute for Small-Scale Industries, University of the Philippines. Satake, Masaaki (1998). “Cottage, Small and Medium Scale Industries.” Philippine Studies. Vol. 46, Second Qtr., pp. 215-235. Small and Medium Enterprises: Surviving Free Market Economics? (October 15, 1999). Ibon Facts & Figures. Vol. 22, NO. 19.

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