Academic journal article Journal of Emerging Trends in Economics and Management Sciences

The Types of Small Businesses and the Communication Strategies Employed by Entrepreneurs in Eldoret Town, Kenya

Academic journal article Journal of Emerging Trends in Economics and Management Sciences

The Types of Small Businesses and the Communication Strategies Employed by Entrepreneurs in Eldoret Town, Kenya

Article excerpt


Communication strategies for competitive advantage have become vital tools in development and establishment of small scale business enterprises in both urban and rural areas, to such an extent that it is hardly possible to set up and operate enterprises without the application of reliable and timely information on strategies of communication. The study investigated the types of small businesses and communication strategies used in the enterprises by the operators in Eldoret town. This study was a descriptive survey design. Stratified random sampling method was used to get 20 small business enterprises from which data was collected. Each small business comprised ten (10) persons, which made the total population to be two hundred persons. Observations, interviews, questionnaire, and also tape recorder and photographs were instruments used to collect data. Data analysis was in form of descriptive and inferential statistics. Chi-square method was used in discussing and interpreting the relationship in the data. It was found that many types of small enterprises are operating in Eldoret town. However, whereas communication strategies exist in the study areas, there is limited access to them by some traders; they are also inadequate and thus limiting the growth of their enterprises. The study recommends that SBEs in the new millennium must combine communication strategies' strength that their size provides with the agility that responding to external change demands. That SBEs must also demolish the complacencies while returning the communicating capabilities that bred past success. The study is significant as it provides information useful to business holders on how to improve their business language for competitive advantage. It also contributes to the already existing pool of knowledge in small-scale business by acting as a benchmark for similar researches in the field of communication.

Keywords: small businesses, communication strategies, entrepreneurs, Eldoret Town, Kenya.


Businesses are organizations specializing in commercial activities. Saleemi (1997) says that these businesses are often referred to as business enterprises and the expression 'enterprise' gives some indication of the nature of their operations and the objectives that they pursue. Business involves adventurous or risk-bearing operations, which aim to achieve some financial gain. Such gains will therefore be the reward for those who invest in the business and take the risk of losing their investment if the enterprise or undertaking fails. People involved in setting up and managing such activities are referred to as entrepreneurs and expressions such as 'entrepreneurialism' and the 'enterprise culture' have become part of the language of Kenyan business as from 1990s. The second president of Kenya, Daniel arap Moi, gave a nod to the development of Jua Kali sector to create sole proprietors as there was rampant unemployment in Kenya by them.

According to Manuel (2002), business enterprises are the primary economic institutions through which people in modern societies carry out their tasks of producing and distributing goods and services. This paper, therefore, adopts the view that a society consists of people who have common ends and whose activities are organized by a system of institutions designed to achieve these ends. Callaghan (1994) notes that there are characteristics which appear to be shared by all kinds of business organizations, whatever their size, shape and/or location. These are: a) established objectives or goals which guide their business activities; b) have as their prime beneficiaries those who have put capital into the enterprise and produce and supply goods and services of one sort or another to meet the demands of consumers. These general characteristics provide only a limited insight into practical business operations.

Business organizations are remarkably diverse. What they do, how they do it and why they do it varies widely from enterprise to enterprise. …

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