International Journal of Sub-Saharan African Research (IJSSAR)

Background: Transparent and open communication can only thrive in an environment that encourages it. Effective communication involves ensuring that everyone understands their job and what is expected of them. If this is not in place from the start, communication issues will arise later on.
Objectives: The goal of this study was to examine the effect of open communication and performance of SMEs in Ebonyi State. The specific objectives were to: examine the effect of clarity on the output; and ascertain the effect of feedback on the gross margin of SMEs in Ebonyi State.
Method: The study used the descriptive survey design approach. The population of study was 321 owners and employees. The study used the whole population because the number was small. The primary source of data was the administration of questionnaire. Two hundred and eighty one (281) employees returned the questionnaire. Data was presented and analyzed by mean score and standard deviation.. The hypotheses were analyzed using Z- test statistic tool.
Result: The findings indicated that Clarity had significant positive effect on the output,Z(95,n = 281), 8.874 < 9.888,P > 0.05 and Feedback had significant positive effect on the gross margin, Z(95,n = 281), 7.457 < 9.530,P > 0.05.
Conclusion: The study concluded that clarity and feedback had significant positive effect on the output and gross margin of SMEs.
Unique contribution: The study had provided empirical evidence that could be useful for addressing the challenges of open communication and performance of selected small and mediums enterprises(SMEs) in Ebonyi state.
Key Recommendation: The study recommended among others that for effective performance of SMEs there should need for Clarity, this will help individuals to define goals, create a clear path to achieving them, and make effective decisions.