The study aimed at the effect of communication skills on the entrepreneurial performance of small-scale enterprises in Kyengera town council. This methodology was deemed most appropriate as it facilitated gathering both numeric and narrative data to offer a holistic understanding of the complex relationship between soft skills and business outcomes. For the quantitative component, a cross-sectional survey was conducted targeting all formally registered small business owners operating in Kyengera Town Council who had been in operation for at least two years. Using records from the local business registry, a sampling frame of 320 eligible enterprises was established from various sectors including retail, services, Agro-processing and manufacturing. From the findings, the correlation between Communication skills and the performance of Small-scale enterprises was (r)= 0.650. This implied that there was a high positive relationship between the two variables since the p-value was 0.000 which was less than 0.01 (p < 0.01). This implied that a positive change in Communication skills results in a corresponding positive change in the performance of small-scale in Kyengera Town Council. and vice versa. To be effective in cross-cultural organizational settings, managers and employees need to be alert to the needs, orientations, values and aspirations of other people. Managers and employees should also be tolerant and critical to listen and observe, sensitively, and nonjudgmentally to one. The effective communication approach especially between foreign managers and the Ugandan co-worker is face-to-face conversation. This conversation when done several times can build familiarity and trust among others.