Pages: (178-199 )
Abstract
It is a known fact that Small and Medium Scale Enterprises (SMEs) play a critical role in every country’s economic growth. However, their potential is greatly challenged by their inherent sensitivity to risks and shocks arising from their commercial activities and operations. Access to and use of insurance is critical in managing commercial risks for SMEs to ensure continuity and minimize failure rates. It is believed that deployment of public relations by insurance companies can help SMEs surmount some of these challenges and become the ultimate solution. Therefore, the study examined the PR tools deployed by insurance companies, their effectiveness, communication channels for engagement, as well as the level of awareness of insurance products by SMEs. The situational theory of publics explains how different groups, or "publics", react to communication attempts depending on their level of awareness and interest in an issue. Using the mixed method research design, qualitative and quantitative data were gathered with a validated questionnaire and interview guide. Findings indicated that public relations tools such as social media engagement, workshops, and referral programs have been effective in increasing SME awareness of insurance policies. Also, insurance agents/brokers are the most frequently used information sources (n=51%) and SME owners are somewhat aware (x̄=2.91) of insurance policies with health insurance having the highest (x̄=3.13) awareness level. Insurance companies are encouraged to strengthen their broker relationships and agency network as Word-of-mouth and person-to-person interaction seems to be the dominant way SMEs access information about insurance products and services.
Keywords: Awareness, Information sources, Insurance policies, Public Relations, Small and Medium Scale Enterprises,