Factors Of Social Media Adoption Among MSMEs
Business has been a culture of exchange between people, and its mode of operation has changed over time. This is owed to the dynamic nature of business, which varies in social, economic, and political landscapes. But what really matters is the binding force creates an outlook in the face of uncertainty to improve productivity and grow sales.
Across the world, micro, small, and medium-sized enterprises (MSMEs) play a pivotal role in the economic growth of every country, and Nigeria is no exception. This is a sector where there is a large number of businesses offering products and services to the teeming population. As such, it is a competitive landscape with businesses developing their respective strategies to outpace their competitors. A bid for these strategies inspires the need for technological innovations to enhance their sales and growth.
It is noteworthy that the advent of technology has been a great advantage to businesses, as we have seen the emergence of e-commerce platforms that enables MSMEs to have their products for sale. Also, many businesses have taken to having a website that gives a directory of products and services for possible business growth through traffic generation. Therefore, new and existing MSMEs are taking a stance on adopting and integrating innovative tools into their business.
However, the understanding of the large number of mobile users on various social media platforms has informed the decision of MSMEs to go onto social media to enhance their business. Popular of these platforms are Facebook, Instagram, Twitter, and TikTok. It is common knowledge that every smartphone user is on one, two, or all social media platforms. In addition, MSMEs are using other social commerce platforms like Peppa to reach a broader audience to grow their business.
In all of these reasons for the foray of business into using social media, this article highlights some factors that prompt the adoption of social media for MSMEs.
Factors That Influence Adoption of Social Media By MSMEs
Competition is a significant force that triggers many MSMEs to enter the social media space. They tend to take advantage of social media tools to reach a broader target audience. This is owed to millions of social media users in Nigeria that use each of these platforms for varying purposes. Therefore, MSMEs on social media have an edge over others that do not have a presence on social media.
It is safe to infer that running a social media advertisement goes faster and cheaper than mainstream media. So MSMEs can always stay ahead of the curve of competition when they adopt a social strategy for their business growth.
Moreover, MSMEs on social media can easily track and analyze the strategies of their major competitors to enable them to deploy the same system. As such, the business operation is not aloof, as MSMEs can tweak their service or product offerings and even demographic information to grow the business.
- Customer Pressure
It is important to know that customers prefer to engage with businesses that provide convenience and ease of navigation. This is why some customers shop online rather than walk far to physical stores. Many customers now believe they can order a product or service on social media without leaving the comfort of their homes. This could reduce patronage to physical stores and which in turn would minimize business growth.
However, MSMEs adopt social media to increase the rate of engagement with their new and existing customers such that they can quickly notify their customers of a new product or service the business offers. Social media is one of the places customers go to learn more about a business and its offerings. Such businesses may miss out on these customers without a social media presence.
In view of these, it is now essential for MSMEs to be actively present on different social media platforms to reinforce customers’ confidence in the business further.
For instance, when an MSME creates an online storefront on Peppa, it can link the Instagram page to the storefront page for customers to have a full view of the range of products the business offers.
It is relatively cheap to set up a business on social media platforms. This is almost a free exercise as you do not need to pay to register a social media account, showcase products and services, and get customers. MSMEs can thrive on social media without borrowing a loan to run the business. The engine tools on these platforms are also free to use, albeit it requires good skill to fully optimize businesses to attract the right customers and improve productivity.
MSMEs can run their business from the comfort of their home and offer products and services to people worldwide. In this light, it gives room for more creativity to improve businesses. But some businesses of their own volition can run a paid advertisement of their product or service to attract more customers and broaden the profit margin.
Social media is not only a viable tool for communication and connection; MSMEs can also use it to grow their businesses, as it aligns with this digital age. The setting up is cost-effective as it also gives room for healthy competition between MSMEs of the same niche.
However, MSMEs must research the best social media platform for their business growth. This is because the approach to these platforms varies. Are you thinking of the best social platform for your business? I recommend Peppa as the most sustainable and safe platform to sell your products.
Frequently Asked Questions (FAQs)
This is relative as it largely depends on individual approaches to ensuring security on social media. In an actual sense, no social media is safe for MSMEs. But every business can be safe by taking certain precautionary measures to safeguard its social media account from identity theft and protect every transaction.
Let's remind ourselves that social media has become a hotbed of fraudsters, hence making every social media account vulnerable to possible scams if protective measures are not taken. In this instance, Peppa is the most reliable platform for MSMEs to sell products and receive payments safely.
There are MSMEs of the same niche on social media, which guides them to have an overview of the best price to tag products. This will not make the products expensive and relatively cheap. Therefore, this idea will enable MSMEs to gain more customers, increase sales, and boost profit margins.