Integrating Public Relations Principles into Small Scale Businesses in Nigeria

TSU Journal of Communication and Media Studies, Vol. 3, No. 1, March 2020 127 | P a g e TJCMS Vol. 3. No. 1, March 2020 Integrating Public Relations Principles into Small Scale Businesses in Nigeria 1Obinna Samuel Ugwu & 2Idi Shadrach Abstract Public Relations (PR) is a famous tool of maintaining mutual understanding between an organization and its public. Large business organizations and institutions across the globe use PR. However, Small Scale Businesses (SSBs) lack the understanding and relevance of PR in their business. Additionally, previous attentions of researches in PR mainly focus on large organizations. This study explores the PR strategies that SSBs can adopt to win and retain customers. The study which relies basically on documentary analysis of published researches to extract evidence is premised on the Melvin Sharpe Behavioral Theory. It establishes that PR oriented strategies such as clean business environment, empathy, quality service or products delivery, effective communication among other practices are key to the success of SSBs. It thus recommends that SSB owners should not just arm themselves with PR strategy but should ensure good employer/employees relations at all times, and SSB owners should ensure healthy relationship with their external publics as prescribed by the Melvin Sharpe Behavioural Theory Principles. Keywords: Public Relations (PR), Small Scale Business (SSB), Organizations Introduction The basic goal of any business organization is to make profit. Profit can be realized when customers patronize business. Customers can be attracted and sustained only if they are satisfied. Satisfying customers in business requires certain strategies. In other words, it is not enough to start a business outfit without knowing and applying strategies that will keep the business thriving in the midst of competitors and limited customers. There are several strategies that successful businesses especially those at national and global levels do apply; among these strategies are PR practices. Nwosu (1992 p. 5) describes, PR as “being socially responsible in order to be socially acceptable; it is the bridge that links public [customers] to sellers [organizations]”. No wonder Akpan and Prosper (2010) posit that PR plays important role in marketing. It helps an organization sales more goods, attracts more customers and goodwill from the public. It is on this premise that organizations like MTN, Dangote Group, oil giants like Texaco, Mobil and their likes spent millions of dollars on PR. These frontline organizations already know that under-rating PR in any business is gambling with success, hence efforts are always made to put up PR unit in such organizations. DOI: https://doi.org/10.5281/zenodo.17931193 1 Obinna Samuel Ugwu is an MSc. Candidate in the Department of Mass Communication, Taraba State University Jalingo. Email: obinnaugwusamuel2[email protected], [email protected] 2 Idi Shadrach holds an M.Sc. in Mass Communication at the Nnamdi Azikiwe University, Awka, Anambra State, Nigeria. Email: [email protected] TSU Journal of Communication and Media Studies, Vol. 3, No. 1, March 2020 128 | P a g e TJCMS Vol. 3. No. 1, March 2020 Irrespective of the relevance of PR in business operations, most SSBs in Nigeria seem to lack knowledge of PR practice necessary for their operations and growth. We are in an era where competition in business is very stiff and customers are very enlightened and sophisticated, traditional advertising or approach to business at any level do not work effectively any longer because the customers are not just after value for their money but have certain expectations from business outfits (Institute of Customer Relationship Management (ICRM), 2014). Sadly, many SSB owners are still doing business as usual in spite of the changing nature of customers; hence, they fail to meet the expectations of the customers not to talk of surpassing it. As a result, many businesses fold up within short period of their existence (ICRM, 2014). Many factors can cause failure in business, but lack of application of PR principles is a major one (Asemah, 2010). It is important to note that no matter the size of an organization, its desire is to attract a degree of support or patronage from the public. Therefore, every business organization whether large, medium or small needs PR strategies to keep growing and succeeding. Small Scale Businesses (SSBs) have been of economic and social significance to every nation. It is one of the major sources of job opportunities. Ayozie (2011 p. 15), concurs that in “Nigeria SSBs constitute over 80% of all registered companies occupying positions in agro based and allied industries, shoe making, hair dressing, barber shop, provision stores, computer centers, restaurants, bars, eateries etc. with all that, there is no doubt that SSBs have favourable percentage of the nation’s Gross National Product”. The National bureau of Statistics (NBS) in its collaborative study with Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) (2013) reports that MSMES (Micro, Small and Medium Enterprises) 48.47% to the country’s GDP as well as 7.27% of goods and services exported out of the country. According to the study, MSMEs accounts for 84.02% of jobs in the country out of the over 37.07 million MSMEs in the country employing over 59,741,211 employees. Similarly in South Africa MSMEs account for 91% of businesses, 60% of employment and contribute 52% of the country’s GDP. Thus, SSBs occupy an important position in any developing society. They are the roots of innovations, inventions and employment. They contribute in increasing the volume of production and value-added services; attract labor, reduce poverty and unemployment as well as achieve equitable distribution of income among individuals (Al-Rawashdeh, 2011). Seeing the importance of SSBs to the growth of the nation, governments at different levels and different eras introduced programmes that would help improve and introduce more SSBs, prominent among these programmes is the “YOU-WIN” programme by former president Goodluck Ebele Jonathan. The YOU-WIN programme enabled young Nigerians entrepreneurs have access to capital ranging from hundreds of thousands to millions to start their SSBs. Also, Non-governmental organizations, religious groups and philanthropists give out certain amount to individuals free or in form of loans to start their own small businesses. In spite of all these investments into SSBs, the result is not commensurate with the amount invested. Sadly enough, some TSU Journal of Communication and Media Studies, Vol. 3, No. 1, March 2020 129 | P a g e TJCMS Vol. 3. No. 1, March 2020 beneficiaries of this empowerment programme cannot account for the capital not to talk of profit to show for it. This is possible because with all other challenges that hinder the growth of SSBs in Nigeria, lack of understanding and application of marketing concept viz-a-viz PR strategies to attract, maintain and keep customers also contribute (Kola and Akinyele, 2010). This lack of understanding of PR strategies is reflected in the behaviors of small-scale business owners and managers toward customers. Many SSB owners and managers discourage customers with harsh tone of words, frowned faces, and dirty environments among others. Over the years, attention of seminars, workshops and other trainings concerning SSBs were mainly on starting new businesses, how to generate capital and obtain loans from financial institutions. There have not been sufficient efforts to acquaint SSB owners and prospective entrepreneurs with knowledge to attract and win customers to their business. This situation is coupled with the fact that most literatures on PR emphasise the relevance of PR mainly to large organizations and businesses. In addition, many business owners are of the idea that advertisement alone is enough to win and retain customers. Thus, there is knowledge gap about PR principles in SSBs. It is against this backdrop that this study explores previous researches on PR and SSB in order to suggest strategies which small-scale entrepreneurs can adopt to attract and maintain customers and by extension gain profit. Literature Review For a good understanding of this discourse, there is need to attempt a proper demonstration of the key concepts, which are Public Relations and Small Scale Businesses. Concept of Public Relations PR has generated several definitions within and outside the academic field. The World Assembly of Public Relations during its meeting in 1978 in Mexico conceptualized PR as “the art and social science of analyzing trends, predicting their consequence, counseling organization leaders and implementing planned programmes of action, which will serve both the organization and public interest”. The British Institute of Public Relations further states that, PR is a “deliberate and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its publics”. Supporting this view Nwabueze (2014 p.211-212) says, “PR is a proactive effort aimed at sustaining a mutual beneficial relationship between organization and its publics”. Black (1991) sees PR as the art of achieving harmony with the environment through mutual understanding, based on truth and information. Cutlip, Center and Broom (1994), opine that, PR is the management function that identifies, establishes and maintains mutually beneficial relationships between an organization and her various publics. Akpan and Prosper (2010), stress that PR is an on-going process that moulds good long-term relationship and plays an important role in marketing. Okafor (2002, p.5354), sums up that, “PR can change attitudes of customers from negative to positive”. However, Childs cited in Jethwaney and Sarkar (2012, p. 6) opines that “PR is not the art of TSU Journal of Communication and Media Studies, Vol. 3, No. 1, March 2020 130 | P a g e TJCMS Vol. 3. No. 1, March 2020 tempering mental attitude of cordial and profitable relations but reconciling or an adjustment towards public interest those aspects of our personal corporate behavior which have a social significance on the people we deal with in our businesses or organizations.” Making a particular definition of PR universally accepted is not an easy task, this is because of some inadequacies posed by some definitions which either fail to explain the frontiers of PR practices (Akpan, 2010). However, it is evident that most definitions of PR are interrelated; the linking component is that PR is a deliberate act towards establishing and maintaining understanding between an organization and its publics. In this 21st century, the meaning of PR goes beyond the semantic groupings of words given by various scholars but it is everything we do to improve our relationship and attract people to us. Thus, Akpan further argues that, PR is “a smile on sales persons face”, “warm greetings from a receptionist”. He notes that PR is “performance and recognition.” Thus, PR is all about doing good and been remembered for that. This means PR is not merely an act practiced only by specialists or experts though experts bring in skills and flavor, it is not just a luxury reserved for large organizations though large organizations often set up fullfledged PR units, it is something that any organization irrespective of size can adopt. The dynamism of PR has made it “everybody’s business” especially those into profit driven business. Though PR experts have specific functions, approaches and assignments they do for their organizations or client, the philosophy in PR is wide and dynamic; it is anything individuals, groups or organizations do in order to win and maintain people or customers to their side. Small Scale Business (SSB) The term Small-Scale Business (SSB) is often inter-changed with terms such as Smallscale Industries, Small-scale Entrepreneurship or Micro Small and Medium Enterprises (MSMES). There seems to be no specific definition of SSB. Different authors, scholars, schools, government agencies and professional bodies have different ideas to what it means. Stephen and Wasiu (2013) state that, the definition of SSB is not static but varies from institutions to institutions or persons. Ayegbusi (2004) defines SSB as an enterprise which has an investment capital of up to one hundred and fifty thousand naira (150,000) and employs not more than fifty (50) persons or workers. The Central Bank of Nigeria (CBN) 2010 in its credit guideline to banks defines SSB as an enterprise whose annual turnover is not exceeding five hundred million (N500,000,000) and assets of two hundred and fifty million (250 000,000) excluding land and working capital. Julius (2004) in Babafemi, Adesheye and Zenith Bank Plc., Akure (2015) further define SSB as those enterprises with total assets in capital, equipment, plant and working capital that do not exceed two hundred and fifty thousand naira (250,000) and employ not more than thirty (30) full time workers. Coming down, the Federal Government Small Scale Industry Development Plan of 1980 defines a small-scale business in Nigeria as any manufacturing process or service industry, with a capital not exceeding N150, 000 in manufacturing and equipment alone. Looking away from the monetary definition to the aspect of possible TSU Journal of Communication and Media Studies, Vol. 3, No. 1, March 2020 131 | P a g e TJCMS Vol. 3. No. 1, March 2020 number of employees for what can be described as a small scale business, Wolfeson (2011) cited by Steven and Wasiu (2013) describe small-scale businesses as those industries with 10 - 50 employees. Aijebefun et al., (2003) also in Steven and Wasiu state that “SSB is a commercial outlet that has 50 or fewer employees”. SSBs by nature are mostly funded and managed by owners or their relations although some get their capital from banks and local financial unions. A review of the literature reveals that there is no consensus among scholars and industrialists on the definition of SSB. The definitions yield meanings which vary from institution to institution and often depend on the level of employment, ownership structure, method of production. In the context of this work, SSB focuses on businesses ranging from petty trading, retailing, shopping kiosk, hair-dressing salons, tailoring and their likes without regard to the amount of capital, machinery and number of personnel. Theoretical Framework This study is hinged on Melvin Sharpe’s Behavioral Theory. According to Asemah (2010), Melvin Sharpe Behavioral Theory was propounded by Professor Melvin L. Sharpe of Ball University, Indiana, United States of America in 1989. The theory basically attempts to take care of defects in the four PR models propounded by Grunig and Hunts. Sharpe holds that Grunig and Hunt’s four PR models did not achieve all elements of behavior necessary for effective PR performance. Melvin Sharpe Behavioral Theory is premised on the assertion that certain behavioral actions are necessary if an organization must achieve its goals. These behaviors are rooted in the principles of honesty, openness, fairness and continuous two-way communication and environmental analysis. Sharpe’s theory recaptures the important elements needed in PR like continuous communication. It also introduces elements like honesty, fairness and openness as key to successful PR efforts but it fails to stress that such elements like fairness must start with the top management staff towards their employees. This is necessary because an employee that is unfairly treated, unable to access necessary information about his/her organization may not present the image of the organization outside effectively. In spite of the shortcoming of Melvin Sharpe theory, it remains relevant to this study. This is so because honesty, openness and fairness by SSBs toward customers will make them have confidence and trust in them. This, by extension, will increase patronage and continuous communication between business owners and customers. It will also resolve problems and promote understanding while environmental research will enable SSBs owners and managers know their existing customers, their needs and perceptions about them. Various studies have made efforts to explain how an organization using behavioural theory can create good relationship and build confidence in its publics. Asemah and Asogwa (2012) state that if the principles of behavioural theory are applied by government in managing Jos North crisis, it will go a long way in maintaining lasting peace and harmonious coexistence in the state. Similarly, Smith and Ogbuoshi (2016) explain that it is very crucial that banks apply the principles of Behavioural Theoryhonesty, openness, fairness, continuous TSU Journal of Communication and Media Studies, Vol. 3, No. 1, March 2020 132 | P a g e TJCMS Vol. 3. No. 1, March 2020 communication, and continuous image analysis to build the confidence of their customers. There is no doubt that Behavioural theory if leveraged upon, would help an organization, business entity to build confidence and lasting relationship with its publics. Application of Public Relations (PR) Principles in Small Scale Businesses (SSBs) PR principles related to SSBs are not sophisticated organization policies, programmes or campaigns but simple changes in the way SSB owners and managers do the things they do on daily basis within the business environment especially while they relate with the customers. To fully grasp the idea of applying PR principles by SSBs, it is expedient to identify the publics of SSBs. Nolte in Asemah (2011, p.133) defines publics as “anyone that is interested in or is affected by an organization; whose opinions can affect the organization”. Cutlip and Center cited in Nwabueze (2014) describe publics as a group of “persons tied together by some bond of interest and sharing a sense of togetherness.” Publics differ from one business to another, for example, barbershop deals with different publics with tailoring business. The basic idea is to strive to understand your publics and relate effectively with them in order to create, build, and maintain beneficial relationships. Asemah (2001) says there are various ways of classifying PR publics. PR publics are often classified into internal or external. Internal publics are individual within an organization whose actions directly affect the running of an organization; typical examples of internal publics are the employees of an organization. For SSBs like food restaurants, internal public are the sales girls, cooks and cleaners or anyone assisting the owners in running the business. External publics are persons who are outside the organization but whose actions affect the organization in one way or the other. Chiefly in this class of publics are the customers of a particular business outfit. Other external publics include the host communities, suppliers, wholesalers, financial institutions and government officials. Thus, there is need to understand strategies or PR principles that will win these people towards giving their best in running the business and or in patronizing the products/services provided by the business outfit. SSB PR Principles for Internal Publics Internal publics are the engine room that ensures services or goods of an organization are ready for customers’ patronage. These individuals handle different parts or process of production. In most SSBs, internal publics may not be common because the owner is often in charge of everything. However, where they are available, they need to be in good condition. Peters and Waterman in Ajala (2005, p.120) states that successful business organizations pay primary attention to their employees. Supporting this, Cutlip, Center and Broom also cited in Ajala state that “effective employee relations results in continuity of work without strife.” The key here is that employees’ salaries and other entitlements need to be paid promptly. This is why Jethwaney and Sarkar (2012, p.7) posit that: “…the needs of employees invariably revolve around their welfare, therefore, owners of SSBs should not only be concerned with salaries of their employees but also develop incentives such as bonuses, special transport assistance that will improve the well-being of the employees.’’ In line with this, SSBs owners must strive to identify with the employees in times of personal crisis and TSU Journal of Communication and Media Studies, Vol. 3, No. 1, March 2020 133 | P a g e TJCMS Vol. 3. No. 1, March 2020 celebrations. For instance, in the event of death of employee’s relation, the owner of the business should not just excuse the staff to go for mourning but also visit the family of the staff to share his/her grief. It is important to know that staff of organizations feel great when their bosses come to their home on certain occasions like death of loved ones or celebrations such as birthdays or weddings of relations. Another key principle that SSBs must learn and apply is respect for employees. No matter the academic level or socio-economic level of an employee, business owners should encourage him/her and give him/her opportunity to use his/her knowledge. It is in line with this that Ajala (2005, p.120) posits that “the core of employee relations is making workers know what needs to be done, understand why it is necessary, feel committed to achieving it and have a chance to use their own knowledge and skills to do it better.” For this to be possible, effective and warm communication between employer and employee is necessary in running a business. No matter the challenges or mistakes committed by an employee, there should be a platform where both the employer and the employee can sit to dialogue to resolve issues. This can be a brief meeting as the need arises or meeting at an interval of time where everyone can open up about his or her fears without fear or intimidation. Also, communication channels such as phone calls, SMS, social media like WhatsApp, Facebook need to be open between employer and employee; where employer feels too big to be an online friend to his employee or busy to pick calls from his employee or queried his employee for dialing his number, invariably, it plants bad seed in their relationship. In another development, it is worthy to know that relationship between the employer and employee (internal publics) deteriorates when business owners (employer) persistently use threats and feel he/she is doing favor to the employees by giving them job. Employees give their best when employers respect them. Constant firing of employees by managers of organizations is a sign of bad PR, which has the ability to tarnish the image of such organizations within their communities and other publics. SSB PR Principles for External publics The external public is often larger than internal especially in most SSBs. Within the external public, customers or consumers are the primary concern of SSBs. Customers or consumers in the 21st century business world are not just kings but “gods”. Customers are the reason the business exist hence, they can “fire” an employer by not patronizing the business. Asemah (2011, p.51) adds that, “customers are the backbone of any business as such efforts must be made to ensure that they are adequately taken care of.” In this era of stiff competition at all level of business, customer satisfaction must form part of the policy of any business. It is important to note that a “non-existing customer” is better than “not-satisfied-customer” because “not-satisfied-customer” has the ability to stop prospective customers from patronizing a particular business. Therefore, SSBs must understand patterns to satisfy their customers. In customer relations, first impression matters in building mutual relationship. From the point of purchase or contact with the business outfit, the customer starts assessing the outfit’s PR. TSU Journal of Communication and Media Studies, Vol. 3, No. 1, March 2020 134 | P a g e TJCMS Vol. 3. No. 1, March 2020 That is why courtesy, through warm greetings or welcome is necessary in business. SSBs must ensure that their first contact with any customer be it in food restaurant, barbing shop etc. relaxes the customer. The tone of voice, outlook and smiles are some PR principles that will work the magic. The appearance of any business environment must be serene. The sales person dressing, attitudes, and organization of equipment influence the customers’ judgment about the business. Clean environment coupled with facilities such as chairs, tables, television sets etc. depending on the business, go a long way in enhancing relationship with the customers. Where equipment like television are in use, SSB operators should know that such facilities are meant for the customers not the business owner or the employees, therefore, the organization’s staff or anyone managing it must apply wisdom in selection of channels, music or programmes that will appeal to particular customers at a given time. It is sad that many SSBs are very mindful of their profit that they do not care about the conditions of their business environmentsthey lack sufficient sitting equipment such as chairs for their customers, fans for curbing heat etc. these situations unknowingly to many SSBs have scared customers away from them. Primarily, customers come to a business place to patronize the service or buy the product not just to come and enjoy the conducive environment. Thus, they want to enjoy the value of their money as such providing quality service and product at affordable prize should be the primary goal of every SSB. Selling fake or sub-standard product, lying to support your product or service is a bad way of doing business and it scares the customers. SSBs must know that no amount of PR principles can substitute quality product or service. Another dimension is that SSBs should give customers a feeling of security by providing after sales services such as educating the customer face to face on how to use a particular product or services. SSBs owners must not be too busy to the point that they cannot attain to customer’s complaints. Patiently attending to the questions and fears of a customer makes him/her feel respected and eager to stay in relationship with a particular business. In fact, business owners, depending on the nature of services or goods, can go further to call customers through phones to confirm about the condition of the product purchased, this approach is necessary in businesses that deal with electronics and other gadgets or machines. Another principle of effective customer relationship especially by SSBs is ensuring that products and services are always available for the customers and transactions are made in good time. Time is precious to customers; they have other commitments other than coming to make purchase or patronize a particular service. Some of these customers stop by after work and are eager to reach home to see their families; sluggishness in transaction will discourage them and may make them not to come to the shop again. Similarly, customers do not want to come to a shop and could not find what they want and they do not enjoy shopping same class of goods such as sugar, butter, bread etc. at different shops during a single outing. Therefore, unless a particular business outfit is the only business that deals with particular goods or services, inconsistency and sluggishness of delivery will tarnish the image of a business and send customers away. That is why SSB owners or intending SSBs must research TSU Journal of Communication and Media Studies, Vol. 3, No. 1, March 2020 135 | P a g e TJCMS Vol. 3. No. 1, March 2020 the basic needs or demands of the target customers and channel their capital in ensuring that such needs or demands are available at all times. Where such is not possible at a particular time, SSB owner can go out to get that from the neighbors while the customer sits, relaxes and waits in the shop. Allowing customers to go to rival business on his or her own can make business outfit lose the customer. The 21st century customer is like a baby that expects much from parents. SSBs need to understand the dynamic needs and expectations of their customers, and surpass them. By so doing the business will not only continue to enjoy mutual relationship but increase turnover and free advertising (face to face) by the customers. Apart from customers, other external publics that SSBs cannot afford to ignore include host communities, financial bodies, wholesalers and government. Talking about community relationship, Ajala (2005, p.121) opines that, “an organization finds balance within the community that it resides.” This means, the manner in which a business propriator relates with the host community especially, landlords, community leaders, youth groups and local vigilante groups will affect the smooth operations of the business. That is why, Abraham Lincoln also quoted in Ajala states that “with public sentiment nothing can fail, without it nothing can succeed.” Therefore, SSBs must strive to win the community’s sentiment, such can be achieved by identifying with the community’s sensitivities and needs by taking part in community initiatives such as general sanitation, cultural festivals as well as show empathy in times of crises. SSBs should try to give back to the community in their little ways. Financial bodies are not just external public of large business organizations but also SSBs. SSBs also deal with micro-finance banks, local financial bodies or unions that primarily contribute/lend money to members to run businesses. Maintaining mutual relationship with such bodies is paramount to ensure adequate financial support in times of need. Such relationship can be achieved through prompt payment of loans collected, using money collected for the purpose it was designed and ensuring that financial records are straight and available for these institutions or groups when the need arises. SSBs mostly depend on the services of wholesalers, dealers, intermediaries and other service providers. Provision stores for example order goods from wholesalers and sale them to customers at profitable rate, service providing businesses like barbing shop seek services of other experts to fix equipment like generators, electricity and clippers. Therefore, relating well with such people is very important for SSBs. Phone contacts of such persons or experts can be pasted at visible points in the business environment; this will help the business owner or manager to make timely contacts in times of suppliers or any complaint. In addition, SSBs should ensure that they pay for goods collected from wholesalers or services enjoyed from other specialized persons. SSBs should minimize unnecessary withholding the wholesaler’s or other people’s money. SSBs must take responsibility of educating their wholesalers about the needs of consumers. They should make consumers’ complaints known to wholesalers, producers and dealers. Provision of important information to these publics will help improve their businesses. Every organization, irrespective of size, must relate with government at certain levels. Government regulates the activities of persons and businesses; issues licenses and rules