The utility of social network sites in facilitating business development: linkages between enterprise development and new media

Abstract

SMEs are regarded as drivers of economies all over the world. They help to create employment and add to the gross domestic product of a country. But in Nigeria, many of these small business struggle to grow due to the many challenges they face such as inadequate power supply. This study was necessary because many small businesses keep closing in Nigeria because of lack of government support, inadequate marketing by their owners. This study examined how small businesses in Nigeria can leverage social media to enhance their business and get more customers to buy their products. A survey was used as a data collection instrument and was distributed to business owners and managers who were believed to be the decision makers in their enterprises. Consent letters were first distributed to the businesses, which in return gave permission to be part of the study. The questionnaire was given to the owners and managers via email and through a hand delivery process. The findings of this study suggested many ways businesses can get potential customers to notice their brand online such as catchy posts, running online contests, and using hilarious pictures or videos. The findings also demonstrated that there is a link between the frequency of application of social media and effectiveness of the platform when used for promotional purposes. Furthermore, the factors that can cause businesses not to adopt social media were also given. The findings indicated that businesses which run effective advertisements on social media, incorporating hilarious themes will get the attention of customers, and in return will make more sales and grow their enterprises. Government agencies that deal with small businesses in Nigeria should also look at this research to find out the challenges faced by these SMEs, to enable them to create better policies that will foster the growth of small enterprises in Nigeria. Future research should use a mixed method approach to find out more about the factors that can stop an enterprise from adopting new media technologies.