International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue II, February 2020 | ISSN 2454–6186

Effects of Communication on the Growth of SMES in Wakulima Market, Nairobi County, Kenya

Masecko Irene Britney¹, Dr. Patricia Kungu^2
1,2Department of Business Administration, School of Business, Kenyatta University, Kenya

Abstract: Despite their significant role in both the developed and the developing economies, Small-and Medium-sized Enterprises (SMEs) are faced with the greater risk of business failure with past statistics indicating that over half of all new ventures will not enjoy long-term success. They face various types of difficulties and business challenges. This study sought to determine the effects of communication on the growth of SMEs in Wakulima Market, Nairobi City County, Kenya. This research adopted a descriptive survey research design. The target population was 576 SMEs at Wakulima Market. Stratified sampling method was used whereby the population was first divided into strata and then samples were randomly selected from each stratum using simple random sampling method. The sample size was 236 respondents. Questionnaires will be used as data collection instruments. Descriptive statistical analysis such as mean and standard deviation were used to analyse quantitative and presented in terms of a table. The study established that communication had a positive significance influence on the growth of SMEs. The study concluded that communication that is transparent, open, effective communication in an organization will create a sense of openness that builds trust across employee levels. The study recommended that SMEs should develop a communication strategy by first recruiting a group of employees in a room and creating a plan for how the company interacts with employees.

Keywords: Communication, Organizational Growth

I. INTRODUCTION

Growth is an organizational outcome resulting from the combination of firm-specific resources, capabilities and routines. A firm’s growth opportunities are highly related to its current organizational production activities (Coad, 2009). Firm growth is also uncertain: environmental conditions such as competition and market dynamics play their roles. According to Hakkert and Kemp (2016) firm growth is an increase in certain attributes, such as sales, employment, and/or profit of a firm between two points in time. Firm growth can be determined by the degree of effectiveness and capability with which firm-specific resources such as labour, capital and knowledge are acquired, organized, and transformed into sellable products and services through organizational routines, practices, and structure.