Importance of communication in a business

Importance of communication in a business

  • It’s used to pass on relevant information all the time to the concerned parties, e.g. increase in price of a consumer product.
  • It helps the entrepreneur to recruit and select workers. This is done by publishing the job advertisement and interest individuals apply.

  • It’s used to implement business policies. This is achieved by giving instructions to the subordinates, and their supervisors.
  • It helps entrepreneurs to negotiate with customers and suppliers. E.g. about contracts
  • It’s used in keeping good relationships with old customers and creating new ones. This is achieved by frequently communicating to customers.
  • It helps the entrepreneur to make decisions from an informed position e.g. written communication contain details of what has been agreed on.
  • It helps the entrepreneur to coordinate operations of the business executed by different departments.

  • It is used to make the general public to be informed about what the business offers. For example the nature of the new product to the general public.
  • It helps the government and other regulatory organizations to monitor, guide or direct business operations.
  • It provides a permanent point of reference for future business the written communication in form of minutes.

Its helps an entrepreneur to establish a business identity. e.g. through registering the business


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