The Effects Of Social Media On Small Business

The Effects Of Social Media On Small Business

Abstract

The use of social media is a recent phenomena that has altered how businesses function. Access to resources that might not have otherwise been available to businesses is made possible. Additionally, it has aided companies in improving their credibility, forming strategic alliances, and expanding their interactions with clients and suppliers. Therefore, it is crucial for entrepreneurs and marketers to comprehend how social media functions as a tool for marketing and communication, as well as how they may use it to greatly expand their companies. The study looks into how social media affects small businesses in Ogun State. This was accomplished by identifying the key drivers of entrepreneurship in Nigeria, the value of social media in driving business growth, and the consequences of social media adoption on small businesses. The research design for the study was survey-based. A total of 200 questionnaires were given to business owners in two local governments within the states, and 193 of them were collected. The quantitative data that was gathered with the use of SPSS was analyzed using both descriptive statistics (mean, frequency, and percentage) and inferential statistics (regression). For ease of interpretation, the study’s findings are shown in tables and figures. The study’s findings include that the adoption of social media platforms has had a favorable and significant impact on the business operations of the selected small firm, that social media has increased business opportunities and decreased operational costs overall. The report advises small business owners to identify their digital demands or seek professional assistance to save time and accelerate success online, all while starting with a little budget, in order to improve business results. Small businesses are strongly encouraged to have a presence on Facebook and other social media platforms like Twitter, WhatsApp, and others to lower their overall operating costs. It was determined that the use of social media helps small businesses expand.

Chapiter 1

Introduction

Background Information for the Study

Globally and particularly in Nigeria, the development of the entrepreneurial sector is essential for the growth and development of the country’s economy. In addition to being the ideal strategy for further diversifying the country’s economy from its mono-economy status, it is essential for eradicating poverty and creating jobs. In fact, it has been acknowledged as the cornerstone of the country’s industrialization and the start of a new age (Akinbola, Ogunnaike, and Tijani, 2013; Ogundele, 2007). With the popular works of Richard Cantillon and Adam Smith, entrepreneurship has a long history that dates back to the 17th and early 18th centuries. However, until a profound resurgence in business and economics in the last 40 years, entrepreneurship was largely ignored empirically and theoretically (Ebbena and Johnson, 2006; Shane, 2003).

Businesses today take on a variety of ownership, resource, management, and control configurations, and all of these influence how a small firm is defined. The experience of numerous developing nations, including Nigeria, has demonstrated the potential of small and medium-sized firms (SMEs).

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meaningfully aid in the accomplishment of the country’s economic goals (Abu & Ezike, 2012). Small businesses, in particular, have the potential to advance technological advancement, indigenous entrepreneurship, employment creation, income redistribution, and other development goals (Abu & Ezike, 2012; Ogujiuba, Ohuche, & Adenuga, 2004).

The external environment that modern organizations—large or small—operate in is thus defined by fierce global rivalry, technological innovation, and change. Businesses must operate independently, take calculated risks, encourage innovation, and manage the level of uncertainty brought on by external business variables such technological advancement and change (Emangholizadeh, Borghei, and Matein, 2011). As a result, new marketing communication media have developed beyond the expectations of contemporary small business owners and average entrepreneurs (Kotler & Keller, 2012). One aspect of the change is the present tendency toward social media as a new means of marketing communications with consumers.

Therefore, it is not an understatement to say that the concept of social media is hardly novel (Kaplan & Haenlein, 2010). In actuality, present company communications and marketing techniques have been completely revolutionized by a new type of marketing communications (Kotler, 2012). Although the idea of social media has caused some confusion among academics and practitioners (Kaplan & Haenlein, 2010), one can trace its evolutionary history from the beginning to the present in order to understand its applicability to small-scale businesses. in agreement with Kaplan & Haenlein

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(2010) Social media underwent several stages of growth before achieving the level of popularity it enjoys now.

According to their own accounts, social media was founded in 1979 by Tom Truscott and Jim Ellis from Duke University as “Usenet,” a global discussion platform that permitted users of the Internet to submit open messages. Bruce and Susan Abelson’s ‘Open Diary,’ an early social networking site that brought together online diary authors into one community, is credited with making it popular around 37 years ago (Kaplan & Haenlein, 2010). A year later, one blogger playfully changed the noun “weblog” into the phrase “we blog,” which led to the formation of the term “weblog,” which was then abbreviated to “blog.” Social networking websites like MySpace and Facebook were developed in response to the expansion of high-speed Internet access; as a result, the phrase “Social Media” was formed, gained popularity, and is now widely used. With the introduction of so-called “virtual worlds,” computer-based simulated settings populated by three-dimensional avatars, it has seen the most recent addition (Kaplan).

2010; & Haenlein). LinkedIn and a number of other social media sites, including Twitter, Whatsapp, and others, have been included in the new dimensions.

Finding an alternative to physical distribution of goods, contacts with consumers through virtual exchanges, and even intimacy through social media platforms like Facebook, LinkedIn, or Whatsapp are among the issues that have been identified (Jones, Borgman & Ulusoy, 2015). Social media has also generated a lot of

Numerous chances exist for small enterprises as they reduce their marketing expenses.

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Without worrying about the necessary financial resources, they can reach out to their many clients utilizing other conventional marketing communications channels (Jones, Borgman, & Ulusoy, 2015). Given the foregoing, it is

It is obvious that social media has given small businesses today both opportunities and challenges (Kaplan & Haenlein, 2010). Furthermore, due of social media’s broad reach, small businesses must understand how to use it to their greatest advantage. As a result, the aim of this study was to investigate the effects of social media on various business operations of those companies classified as small scale enterprises, utilizing as a case study a few selected small scale businesses in Ogun State, Nigeria.

Declaratory Statement of the Issue

The coexistence of small and medium-sized businesses and large-scale industries in Nigeria portends some benefits from its small size. The expansion of small firms or SME sub-sectors has nonetheless generally been negatively impacted by a number of issues, but the situation for small scale organizations is compounded and much more sharply due to their flimsy defense mechanisms. Lack of marketing skills and the essential knowledge to use contemporary technologies to reach a diverse customer base is one of the major issues small businesses face.

Additionally, the difficulty of the current market environment and the unfavorable placements of their sales outlets further limit their capacity to assess and respond to the shifting trends in the

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marketplace. Some small businesses simply lack the financial resources necessary to compete favorably. These include what it takes to set up new technologies, hiring and offering the same wage rate compared to large-scale firms to attract the best skilled workers to help them deal with the emerging issues caused by the technological change, and adopting new innovations like social media platforms to reach out and compete better.

Their inability to acquire funding sources may have been caused by the slow adoption of technological breakthroughs. The inadequacy of infrastructure facilities in Nigeria makes the situation for the majority of SMEs worse, which hinders the industrial expansion of SMEs in Nigeria. Could the emergence of new technologies signal development for Nigeria’s SME subsectors? Do they have a lot to gain if they accept the technical revolution that social media networking sites have brought about? What effects would the adoption of well-known social media platforms have on the general operations of small businesses and the owners of those enterprises? There is a clear void in the research on the influences of social median on small scale firms in Nigeia in terms of finding solutions to these conundrums and many others. This emphasizes the necessity of this study, which aims to investigate the impact of social media on Nigeria’s small companies by using a few chosen small enterprises in Ogun State as a case study.

Objectives of the Study, paragraph 1.3

The study’s primary goal is to look into how social media affects small companies in Ogun State, Nigeria. Consequently, the study’s specific goals are to:

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examine the processes that led to the emergence of entrepreneurship in Nigeria, with particular attention to the 20-year history of small enterprises in Ogun State;

Consider social media’s involvement in modern corporate enterprises as an environmental variable, particularly its effects on the development of those businesses through time;

Analyze how the usage of social media platforms has affected the business operations of the chosen small businesses.

1.4 Questions for Research

In light of the study’s stated aims, the following queries were made:

What primary activities have supported Nigeria’s entrepreneurial growth during the past 20 years?

How much has social media helped the business climate in Nigeria and elsewhere?

Does the use of social media platforms affect the small businesses that were chosen in a major way?

1.5 Valuable Research Hypotheses

The following hypotheses were also tested in the study:

1) Ho: Social media has no significant part in the advancement of business in Nigeria or elsewhere.

Hi: Social media is essential to the growth of business in Nigeria and beyond.

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2) Ho: The use of social media platforms by the chosen small-scale enterprises has had no appreciable impact on their company operations.

Hi: Adoption of social media platforms has had little to no impact on the operations of small businesses.

1.6 Implementation of Research Variables

The operationalization of the study’s variables is as follows:

Y = f(X)

Y stands for social media.

X denotes a tiny business.

X = (x1 = originality, x2 = taking risks, and x3 = business)

Using a straightforward equation, we have

Y = f(x 1)………..1 Y = f(x 2)………..2 Y = f(x 3)………..3

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The following is the regression equation:

Y = α0 + β1×1 + µ………1 Y = α0 + β2×2 + µ………1

Y = α0 + β3×3 + µ………1

1.6 Importance of the Research

The many parties involved in the campaigns for rapid entrepreneurship growth in Ogun State and throughout Nigeria would find this study to be of great value. First of all, it will open the eyes of the stakeholders and SME-subsector in Ogun State, particularly in the fields of business process improvement, office procedures, and marketing techniques. Second, it would increase the rate at which they utilize social media platforms to advance their enterprises from where they are now.

Third, as a result of exposing them to the advantages brought about by the introduction and acceptance of social media in the business sector, the study’s findings would be a revelation to online-enterprise operators, service providers, and business students in general. The findings of this research will also assist IT professionals, business owners, and entrepreneurs in facilitating the necessary learning opportunities in the area of social media in order to advance the development of their entrepreneurial skills and enhance the performance of their companies in the future.

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Last but not least, the study would be lacking without mentioning its invaluable contribution to the body of knowledge, the body of literature, and the research libraries across the nation on the subject, as it will satiate the curiosity of any interested readers, lecturers, and future researchers in the area of providing some useful insight to them for any future studies in the similar area.

1.7 Purpose of the Research

Due to limitations like a short time frame and a lack of financing, the study’s scope is only confined to two Local Government Areas in the Nigerian state of Ogun.

1.8 Definition of Key Phrases

Avatars are logos or figures that are used in video games to represent certain players.

social media networks or online forums.

Any form of interactive economic activity that results in the exchange of value through the provision of need-satisfying commodities or services is referred to as business.

Capital and Finance: While finance refers to the financial resources or accessible finances or sources of funding to a business enterprise, capital refers to the money utilized in starting up a business or other materials set aside for the generation of wealth.