EFFECTIVE COMMUNICATION PRACTICES AND THEIR IMPACT ON SME PERFORMANCE IN ANAMBRA STATE

Abstract

This study investigates the extent to which small and medium-scale enterprises (SMEs) in Anambra State utilize effective communication principles to enhance business performance. Adopting a descriptive survey design, the study population comprised 2,895 registered SME managers, with a sample of 869 drawn using proportionate stratified random sampling across the three senatorial zones. Data were collected via a structured questionnaire on a four-point rating scale, validated by experts and pilot-tested. Reliability testing using Cronbach Alpha yielded a score of 0.88, indicating high internal consistency. Out of 869 questionnaires administered, 739 were returned and analyzed, representing an 85% response rate. Data analysis employed mean, standard deviation, and t-tests. Findings reveal that SMEs utilize effective communication principles to a high extent to improve business performance. Additionally, significant differences exist in the utilization of customer satisfaction principles between managers with 0–5 years of experience and those with more than 5 years. Based on these findings, the study recommends that SME managers integrate technology to facilitate communication, enhancing interaction and feedback between businesses, customers, and employees.