ABSTRACT
The study examined social media and its impact on small scale businesses in Nigeria using Ovia North East Local Government Area of Edo State as a case study. The study specific objectives was to examine the role of social media in enhancing the SMEs’ profitability, determine if social media affect market expansion of SMEs and examine whether social media influence the growth and development of SMEs. The study was restricted to SME operator in Ovia North East Local Government Area of Edo State.
The study's research population consisted of small and medium-sized enterprises (SMEs) operating in the Ovia North East Local Government Area of Edo State, with a particular focus on their utilization of social media. In this local government area, there exists a substantial pool of SMEs, numbering more than one thousand (1,580), as revealed in a field survey conducted in 2023. The selection was entirely random, involving the participation of 100 employees from a selection of four (4) distinct SMEs. Specifically, 25 questionnaires were distributed to each of the four SMEs. The reason for using simple random sampling technique is to ensures that every member of the population has an equal chance of being included in the sample. The data collected will be analyzed in regard to the research questions and hypotheses for the study using the Statistical Package for Social Science (SPSS 22).
It was concluded the importance of maintaining a strong social media presence to engage with the audience effectively. However, there are several areas that warrant attention and improvement. The skepticism around the financial benefits of social media is noteworthy, with approximately one-third of respondents expressing doubt about its positive impact on their SME's financial performance. Also, the need for SMEs to revaluate and possibly refine their social media strategies to ensure they are in harmony with broader business goals. Additionally, while there is recognition that social media can enhance brand awareness, respondents were less confident about its role in improving products and services. And it's clear that SMEs should consider revisiting their social media strategies, enhancing their ROI measurement, and exploring ways to make social media a more integral part of their product improvement and promotion efforts. However, based on the conclusion the necessary recommendation was made.
