Role Of Effective Communication On The Growth Of Small Scale Business
(A Case Study Of Vic-Van Ltd, Aba, Abia State)
Effective communication plays a pivotal role in fostering the growth of small-scale businesses. In the dynamic landscape of entrepreneurship, clear and strategic communication serves as a catalyst for success. A well-established communication framework is essential for connecting with various stakeholders, including customers, suppliers, and employees. It builds trust and enhances collaboration, two crucial elements for the sustainable development of small businesses. Seamless communication ensures that the vision and goals of the business are effectively conveyed, aligning all involved parties towards a common objective. Moreover, adapting communication strategies to the specific needs of diverse audiences contributes to the resilience of a small business in the face of challenges. By incorporating transparent and tailored communication practices, small-scale enterprises can navigate complexities, strengthen relationships, and carve a niche in the competitive business landscape.
The purpose of the study is to find out the role played by effective communication on the growth of small scale business in Nigeria. Effective communication plays a major role on the growth of small scale business in Nigeria. Management and communication are inseparable. It is the pivot in which activities of the various departments relate to enhance industrial growth, productivity and harmony in Vic-Van Ltd. The research work comprised five chapters. Chapter one is the introduction to the research work and it reveals the background of the study. Chapter two is the literature review and it reveals the effect of communication on the growth of small scale business and the problems encountered in maintaining effective communicator. Chapter three is the research design and methodology and it reveals the method the author used in achieving its conclusion. Percentage methods used to analyze the data gathered and presented in a simple percentage table. Chapter five is the summary of findings, conclusion and recommendations.
Title Page
Approval Page
Dedication
Acknowledgments
Abstract
Table of Contents
CHAPTER ONE
1.0 Introduction 1
1.1 Background of the study 1
1.2 Statement of the problem 3
1.3 Objectives of the study 4
1.4 Research questions 4
1.5 Significance of the study 5
1.6 Scope of the study 6
1.7 Limitations of the study 6
1.8 Definition of terms 7
1.9 Brief history of Guaranty Trust Bank 8
CHAPTER TWO
2.0 Literature Review 11
2.1 Meaning and nature of communication 11
2.2 Types of communication in business organization 12
2.3 Communication channels in the organization 15
2.4 Communication barriers 18
2.5 Roles of communication to the growth of small
business 20
2.6 When communication is said to be effective 22
CHAPTER THREE
3.0 Research methodology 30
3.1 Introduction 30
3.2 Research design 30
3.3 Population of the study 31
3.4 Sample size and sampling techniques 31
3.5 Research instrument 32
3.6 Validity and reliability of measuring instrument 32
3.7 Research procedures 33
CHAPTER FOUR
4.0 Data presentation and analysis 34
4.1 Introduction 34
4.2 Data presentation 34
4.3 Data analysis 36
4.4 Test of hypothesis 38
CHAPTER FIVE
5.0 Summary of findings, Conclusion and
Recommendations 42
5.1 Introduction 42
5.2 Summary of findings 42
5.3 Conclusion 43
5.4 Recommendations 44
5.5 Suggestions for further studies 44
Bibliography 46
Appendices 47-49
INTRODUCTION
This section of the report deals with the historical background of the study, the historical background of Imo State Environmental Protection Company, it also narrates the statement of problem, objective of the study, significance of the study, research questions and scope and limitations of the study.
1.1 BACKGROUND OF THE STUDY
Effective communication is and always has been an important feature in enhancing excellent managerial performance. Communication is the lifeblood of every phase of organization life. The basic theory of effective communication diets that everyone is an organization should have all the information he needs to perform his job properly. Manager’s communication will creates a climate for good human relations and provides effective motivations for employees.
According to Little (1965:13) communication is the process by which information is passed between individual and organization by means of previously agreed symbols. In other words, it is the exchange of ideals, facts opinions by two or more people.
O’Shaughnessy (1976:209) sees communication as the means by which information is passed from one persons to the decisions makers and resulting decision passed to these involved in executing them without superior or subordinates communication, there could be organization since it would be impossible to get people to do in a coordinating way: people would be linked together or abstract chain of command but acting without chain of understanding.
Management in some organization seems incapable of communication effectiveness and successful with the work done.
Subordinates do not comprehend what they are told by superiors and the administrator does not hear clearly through what the subordinates are trying, to tell him, when such situation arises productivity will fall drastically. Therefore managers should be greatly concerned with information system and how they are working to promote the growth of the organization.
According to Onuta (1991:89) daily contact between subordinates and superiors is the most important and suddenly used method of communication. The need together free flow of message through open channels of communication on which in a firm is essential for the smooth running of the organizational machinery. The success of any organization depends on the caliber of its administrative managers. Where a manager’s communication is poor, coordination is poor since coordination implies that people are manager has to interpret information generated by his subordinates and pass such information either upwards or horizontal to his superior and peer respectively.
In this way, they improve managerial performance. Hence, the information must be understandable between the sender/code and the receiver/decoder and must be acted upon before we say that communication process has been completed.
It is for the foregoing reason that research work center ground the role of effective communication on the growth of small scale business using Vic-Van Ltd as a case study. Using this organization, the researcher tends to find out the extent in which communication effectiveness can contribute to the growth of small scale business in Nigeria.
1.2 STATEMENT OF THE PROBLEMS
One of the organizations major function is to attract more customers developed the organization makes profit in all its business transaction. All these cannot be realized if there are ineffective communication skills by the organization management and the employees at large. There is lack of effective communication in the organization in view. These has hinders so many business innovation and development. The company in recent time was unable to operate efficiently. Therefore, effective communication which is necessary for the affirmations of the objectives of the organization is lacking and there is poor flow of information from top to the bottom. It was because of these problems that the researcher deemed it fit to use the company as a case study of indicate the role communication plays in the growth of small scale business in Nigeria.
1.3 OBJECTIVES OF THE STUDY
The broad objectives of this study are to determine the role of effective communication in improving managerial performance as well as creating possible ways of maintaining effective communication in an organization.
Other objectives are therefore being stated below:
a. To identify communication problems faced by the managers in the organization.
b. To suggest means by which method of communication can be improved.
c. To know how effective communication contributes to the growth of small scale business in Nigeria.
d. To ascertain when effective communication is lacking in an organization.
1.4 RESEARCH QUESTIONS
a. What is the role of effective communication in an organization?
b. Is lack of effective communication effects managerial performance in the organization?
c. What are the problems of effective communication in an organization?
d. Does ineffective communication leads to organizations inefficiency?
1.5 SIGNIFICANCE OF THE STUDY
Every organization believes in the value of good and efficient staff performance. Therefore it is pertinent to give considerable attention to these problems. This study will be significant in the following ways:
a. Be of great use to anybody who intends to work in an organization not to ignore effective communication to excellent managerial performance.
b. Expose managerial on the need for effective communication.
c. Improve communication system in an organization.
d. Serves as an instrument of social interaction through which relationship are established extended and sustained between managers and workers and finally between managers and the public.
e. To researchers who what to carry on additional research on the subject matters.
1.6 SCOPE OF THE STUDY
This study will be limited to the role of effective communication on the growth of small scale business Nigeria, using Vic-Van Ltd. as a case study.
The researcher has no intention to study the role of effective communication in other business organizations because every necessary information and facts will be provided by the organization.
1.7 LIMITATIONS OF THE STUDY
Despite the limited scope of this research, it was affected with certain constraints which are as follows:
1. Time: In research of this type, a lot of time is needed by given the short time allowed for this study. It was not possible to do all that was required and necessary.
2. Resources: For the reason that I have no source of my income where to obtained funds, collect enough data the work, reduction was made in the quality of my work but the research work will be at normal quality, which means that the research work will make sense.
3. Location: The researcher will be based on the information collected from the staff of Vic-van Ltd. These were a very big problem due to some certain factors, like moving from the company to the communication.
1.8 DEFINITION OF TERMS
Communication: Sending, giving or exchange of information and ideas.
Organization: An association or society people working together to achieve aim/goals.
Grapeview: An unofficial network of communication by which gossip and information and speed.
Channel: The course of company through which communication passes.
System: Orderly inter-connected a method of organization.
Destination: The phase to which a person or thing is going process, series of acts or change proceeding from one to the next.
Gesture: A movement of the body or how to express an emption or intention.
Social Distance: The distance between people who have different social back grounds such as education, wealth and religious persuasion.
Effective: A state of been active.
1.9 HISTORICAL BACKGROUND OF VIC-VAN LTD
Vic-Van Ltd was established in June 1992. It was formally situated at Port Harcourt Road Aba but presently and permanently at Ogbor Hill Aba, and has a ranch in Port Harcourt. It was established as private limited company or company limited by shared. Its service includes marketing, sales, procurement and logistic support. The establishment has many departments such as personnel management, public relation officer, account, purchasing and supply. In order to undergo a successful business, transactions and dealing with their customers and clients effective communication becomes imperative for the growth and survival of the firm.
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Effective communication plays a crucial role in the growth and success of small-scale businesses. Here are several key ways in which effective communication contributes to their growth:
- Building Customer Relationships: Effective communication helps small businesses connect with their customers on a personal level. This can lead to increased customer loyalty and repeat business. Engaging with customers through clear and responsive communication can help businesses understand their needs and preferences better, enabling them to tailor their products or services accordingly.
- Marketing and Promotion: Small businesses rely on marketing and advertising to reach a wider audience. Clear and persuasive communication is essential for conveying the value of their products or services. Well-crafted marketing messages, whether through social media, websites, or other channels, can attract new customers and drive sales growth.
- Effective Sales: Sales are the lifeblood of any business. Small businesses need to communicate their value proposition effectively to close deals. This involves understanding customer needs, articulating how their product or service solves those needs, and addressing any concerns or objections. Effective communication skills are vital for sales teams to achieve this.
- Employee Engagement: Engaged and motivated employees are more productive and can contribute significantly to a business’s growth. Small business owners and managers must communicate their vision, goals, and expectations clearly to their team members. Regular feedback and open lines of communication foster a positive work environment and help employees feel valued and connected to the business’s mission.
- Supplier and Vendor Relationships: Small businesses often rely on suppliers and vendors for materials, products, or services. Effective communication with these partners is crucial for negotiating favorable terms, managing supply chains efficiently, and ensuring that orders are delivered on time and within budget.
- Financial Management: Small business owners need to communicate financial information effectively, both internally and externally. Internally, this involves keeping employees informed about financial performance and goals. Externally, it includes communicating with investors, banks, and creditors to secure financing or manage debt.
- Adaptation and Innovation: In today’s rapidly changing business environment, small businesses need to be agile and adaptable. Effective communication within the organization allows for the quick dissemination of information about market trends, emerging opportunities, and potential threats. This enables businesses to make informed decisions and pivot when necessary.
- Problem Solving: Challenges and obstacles are inevitable in business. Effective communication skills are essential for identifying, addressing, and resolving these issues. Whether it’s handling customer complaints, addressing production problems, or managing conflicts among team members, clear and open communication is key to finding solutions.
- Networking and Partnerships: Small businesses can benefit from forming partnerships and collaborations. Effective communication skills help business owners connect with potential partners, investors, and other stakeholders. Building and maintaining these relationships can open doors to new opportunities and growth avenues.
- Compliance and Regulation: Small businesses must navigate various regulations and compliance requirements. Effective communication ensures that employees and stakeholders are aware of these rules and that the business operates within legal boundaries, avoiding potential penalties or legal issues.
In summary, effective communication is fundamental to every aspect of a small-scale business’s growth. It enhances customer relationships, drives marketing and sales efforts, fosters employee engagement, and helps businesses adapt to changing circumstances. Small business owners who prioritize and invest in effective communication are more likely to succeed and expand their operations.