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This article explores the situation whereby small and medium sized enterprises (SMEs) communicate with the many agencies that attempt to provide information, training programmes and other initiatives. The problems encountered are explained in terms of Clegg’s (1989) (Circuits of Power’ model. By this means, it is demonstrated that systemic power is exerted on the basis of (resource dependency’, firstly by government (EU and national) and its selected agencies and subsequently by the agencies to the SMEs. As a result it provides a political and theoretical contribution that addresses the hegemonic effect of a knowledge management system. Within such a critical epistemology, it is almost inevitable that Habermasian notions of the (ideal speech situation’ are invoked. As the discussion on power relationships unravels, instances of (systematically distorted’ communication are uncovered (Habermas, 1968; 1971; 1979). The linkage between knowledge and power (Introna, 1997) is also used to demonstrate how prevailing attitudes amongst agencies damage communication with SMEs.

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