THE ROLE OF SOCIAL NETWORKING IN THE DEVELOPMENT OF SMALL AND MEDIUM SCALE BUSINESSES IN ENUGU METROPOLIS
ABSTRACT
This research work, examined The Role of Social Networking in the Development of Small and Medium Scale Businesses in Enugu Metropolis. The objectives of the study include to find out the extent small and medium scale businesses in Enugu metropolis have integrated social networking in their business, to examine the benefits of social networking in the development of small and medium scale businesses in Enugu metropolis, to investigate the challenges militating against the integration of social networking in the development of small and medium scale businesses in Enugu metropolis and to profer solutions to the challenges militating against the integration of social networking in the development of small and medium scale businesses in Enugu metropolis. The research method adopted was the survey research method. The sources of data used were the primary and secondary sources of data. The population of the study was 196 while the sample size of 132 was determined using the Taro Yamane’s formular. The major instrument of data collection was the questionnaire. The data collected were presented in tables using frequencies and percentages and analysed using inferential statistics. The hypotheses were tested using the chi-square distribution formular. The findings shows that small and medium scale business owners have not integrated social networking in their business to a high extent, it was also found that social networking is an easy way to learn about your customers, helps target audience more effectively and helps receive instant feedback from customers. The challenges militating against the integration of social networking in the development of small and medium scale businesses include that small and medium scale businesses may find out difficult to manage social networking as it is a fast moving environment. The research concluded that social networking has a major role to play in the development of small and medium scale business. The recommendations include that small and medium scale business owners should be computer literate, so as to be able to integrate social networking in their business, government should equally integrate computer literacy in the area of skill acquisition for entrepreneurs, Small and medium scale business owners should manage the social networking environment as it is a fast moving environment and Small, medium scale businesses should be able to control data privacy and offer tools for personal branding and self promotion.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1    Background of the study                        
1.2    Statement of the Problem                        
1.3    Objectives of the Study                        
1.4    Research Questions                            
1.5    Hypothesis of the Study                                          
1.6    Significance of the Study                        
1.7    Scope of the Study                            
1.8    Limitations of the Study                        
1.9    Operational Definition of Terms                     
References                                    
CHAPTER TWO  
REVIEW OF RELATED LITERATURE
2.1    Conceptual Framework of the Study            
2.1.1 Concept of social network                        
2.1.2 Classification of Social Networking                
2.1.3    Uses of Social Networking                        
2.1.4    Benefits of the Social Networking for Business        
2.1.5  Factors affecting the use of Social Networking        
2.1.6  Impact of Social Media on the Small Business          
2.1.7 Concept of Small Scale Businesses                
2.1.8 Concept of Medium Scale Business                 
2.1.9 Features of Small–Scale Business                 
2.1.10 Problems of Small and Medium Scale Businesses    
2.2    Theoretical Framework of the Study                
2.2.1 The Honeycomb Theory                         
2.2.2 Media Richness Theory                        
2.3    Historical Background of the Small Scale
Business in Nigeria                             
2.4 Empirical Review                              
2.5    Summary of Literature Review                    
References                                    
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1    Research Design                             
3.2    Area of the Study                            
3.3    Sources of Data                            
3.3.1 Primary Source of Data                        
3.3.2 Secondary Source of Data                    
3.4    Population of the Study                        
3.5     Determination of Sample Size                    
3.6    Sampling Procedure                            
3.7    Sample Size Distribution                         
3.8    Method of Data Collection/Instrumentation        
3.9    Validity of the instrument                        
3.10 Reliability of the Instrument                    
3.11     Techniques of Data Analysis                     
References                                    
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1    Data presentation and analysis                     
4.2    Testing of Hypothesis                        
4.3    Discussion of findings                        
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1    Summary of Findings                        
5.2    Conclusion                                
5.3    Recommendations                             
5.4    Suggestion for further research                
5.5    Contribution to knowledge                     
Bibliography                                    
Appendix                                         
Questionnaire                                     
CHAPTER ONE
INTRODUCTION
1.1    Background of the Study
    The power of the social media in the 21st centaury in transforming the social system cannot be over emphasized. The social media has been described as one of the most effective sources of social change in recent times due to the major role it has played in the political religious, economical, educational and social cultural spheres of the society (Ebosatela, 2009). Infact, any organization that does not utilize the power of the social media in this time, could be regarded as backward and unprogressive.
    Ojo (2010) opines that the benefits to be derived from social networking are innumerable, they include that the social media is an easy way to learn about your customers, social media helps target audiences more effectively, helps find new customers and expand your audience, allows you to receive instant feedback from your customers, improve market intelligence and helps you get ahead of your customers, share content easier and faster, create meaningful relationships with customers, helps increase your brand awareness etc.
    One major area in which the social networking has been very effective is in the discourse, that it is a conduit of beneficial information to the small scale businesses (smith, 2011). Small and medium scale businesses are considered as the engine of economic growth and for promoting equitable development. The sector is a nursery of entrepreneurship, often driven by individual creativity and innovation.
    According to Akinseye (2009), small and medium scale businesses in Nigeria, constitute over 80 percent of all registered companies, occupying positions in agro based and allied industries, rubber based leather shoes industries, chemical industries, electronics, general merchandizing, restaurants, dressmaking hair dress making etc. it has a lot of important contributions to make to the economic development of the country. A lot of youths, retired workers and out of school graduates are now gainfully employed, thereby reducing the unemployment rate and its attendant social complications of armed robbery and white collar crimes. It helps to bring about new goods and services and supply the needs of large industries, which have to rely on the small scale operators for business.
    Therefore, anything that will play a role in the development of small and medium scale businesses in Nigeria is a welcome development. Social networks like twitter, allow small and medium scale businesses to locate their current customers or seek about out potential customers (Simon, 2012). For example, if you open a bakery in your neighbourhood, you can create a geo- search in Hootsuite to locate anyone tweeting bread, you can start reaching out to them and invite them to come and try your bread in the bakery. Despite all these benefits inherent in social networking, small and medium scale businesses are finding it difficult in integrating social networking in the development of their business. It is based on this backdrop that the researcher wants to find out the role of social networking in the development of small and medium scale businesses.
1.2    Statement of the Problem
    The consequences of not integrating social networking in the development of small and medium scale businesses are devastating. It has led to the small and medium scale businesses not being able to expand and target their customers more effectively. It has also led to the inability of the small and medium scale businesses to improve their market intelligence and get ahead of their competitors.
    Moreso, the inability of the small and medium scale businesses not integrating the social networking, has led to difficulties in increasing brand awareness and receiving instant feedback from their customer. Finally, the developments in the field of technology is occurring at a greater rate than the time it takes small and medium scale businesses to integrate these technologies.
1.3    Objectives of the Study
    The general objective of the study was to examine the role of social networking in the development of small and medium scale businesses in Nigeria.     However, the specific objectives of the study include.
1.    To find out the extent small and medium scale businesses in Enugu metropolis have integrated social networking in their business.
2.    To examine the benefits of social networking in the development of small and medium scale businesses in Enugu metropolis.
3.    To investigate the challenges militating against the integration of social networking in the development of small and medium scale businesses in Enugu metropolis.
4.    To profer solution to the challenges militating against the integration of social networking in the development of small and medium scale businesses in Enugu metropolis.
1.4    Research Questions
    Based on the objectives of the study, the following research questions were raised
1.    To what extent has small and medium scale businesses integrated social networking in their business?
2.    What are the benefits of social networking in the development of small and medium scale businesses in Enugu metropolis?
3.    What are the challenges militating against the integration of social networking in the development of small and medium scale businesses in Enugu metropolis?
4.    What are the solutions to the challenges militating against the integration of social networking in the development of small and medium scale businesses in Enugu metropolis?
1.5    Research Hypotheses
    Based on the objectives of the study, the following hypotheses were formulated
Hypothesis One
Ho:     Small and medium scale businesses have not integrated social networking in their business to a high extent.
Hi:    Small and medium scale businesses have not integrated social networking in their business to a high extent.
Hypothesis Two
Ho:     There are no benefits of social networking in the development of small and medium scale businesses in Enugu metropolis.
Hi:    There are benefits of social networking in the development of small and medium scale businesses in Enugu metropolis.
Hypothesis Three
Ho:     There are no challenges militating against the integration of social networking in the development of small and medium scale businesses in Enugu metropolis.
Hi:    There are challenges militating against the integration of social networking in the development of small and medium scale businesses in Enugu metropolis.
Hypothesis Four
Ho:     There are no solutions to the challenges militating against the integration of social networking in the development of small and medium scale businesses in Enugu metropolis.
Hi:    There are solutions to the challenges militating against the integration of social networking in the development of small and medium scale businesses in Enugu metropolis.
1.6    Significance of the Study
This research is very important because it examines the role of social networking in the development of small and medium scale businesses in Enugu metropolis. Small and medium scale business owners, will benefit from this research because they will be more enlightened on the role of social networking in the development of small and medium scale businesses in Nigeria. The researcher will benefit from the research, as it is a partial requirement for the aware of a Bachelor of Science (B.Sc) in Business Administration. The universities will also benefit from the research as it increases the secondary source of data.
1.7    Scope of the Study
    This research work covered the role of social networking in the development of small and medium scale businesses in Nigeria. The research work covered Enugu metropolis.
 1.8    Limitations of the Study
    The researcher encountered some impediments in the course of carrying out this research work. Among them were finance, time and uncooperative attitude of respondents.
Finance: the researcher spent some money on transport visiting the various small scale businesses in Enugu metropolis.
Time: the researcher carried out this research work, using her time in the office. This almost created a friction between the researcher and her employers.
Uncooperative attitude of the respondents: the respondents, were economical with information, but when they realized that the research was for academic purpose, they gave out useful information.
1.9    Operational Definition of Terms
Social Networking: This refers to the means of interactions among people in which they create, share and/or exchange information and ideas in virtual networks.
Small Scale Businesses: The meaning of small scale businesses vary from one country to another. The small scale business division of the federal ministry of industries defined small scale businesses as enterprises having investment capital of up to N60,000 and employing not more than fifty (50) employees.
Medium Scale Business: This is a business whose total investment is between N2million and N5million exclusive of land but including working capital.
Development: The process in which someone or something grows or changes and becomes more advanced.
REFERENCES
Akinseye, S. (2009) “The Relevance of Social Media in Promoting Small Scale Industries”. Journal of Humanities" and Social Sciences 1(3):66.
Ebosatela, P. (2009) Business Networking. Shaping Collaboration between Networking Enterprises. Lagos; University Press.
Ojo, F. (2010) Marketing Communications: An Integrated Approach. Ibadan: University Press.
Simon, A (2012) Social Media Networking for Small and Medium Scale Businesses: Journal of Business and Management 7(9): 64-66.
Smith, L. (2011) “Social Media and Business Growth. Why Small/Medium-Scale Enterprises in the Developing World should take an Advantage of it”. Journal of Management. 3(6): 78-79.