Factors influencing the use of social media by small and medium enterprises. A case study of SMEs around Makerere

Abstract

This study focuses on factors influencing the use of social media by small and medium enterprises (SMEs) in areas around Makerere. Three objectives guided this study. The first objective focused on establishing the influence of social media entrepreneurs’ skills towards growth of Small and Medium Enterprises. The second objective focused on investigating the influence of time utilized by social media entrepreneurs on growth of Small and Medium Enterprises and last objective was to examine the influence of online advertising cost on growth of Small and Medium Enterprises. In order to study these objectives, a conceptual framework was used to enhance the understanding of the factors influencing the use of social media by small and medium enterprises. A survey method was adopted as the research design since the data is collected without manipulation of any variable. A sample size of 52 SME was used as respondents out of a target population of 60 SMEs. A questionnaire was employed as the research instrument and pre-testing was conducted to determine its accuracy, clarity and suitability. Content validity was used to examine whether the instrument answered the research questions as intended. Instrument reliability was assessed using the results of piloting through test-retest technique. Data collected was coded and processed using the Statistical Package for Social Sciences (SPSS). The data collected was analyzed, interpreted and presented in form of tables. The study found out that most of the respondents have got access to internet and are making a huge presence in social media sites with less attention to undertaking online advertising. There is a huge unexploited opportunity of capturing online clients of small and medium enterprises. Small and medium enterprises just needed to switch from socializing with friends and start advertising their products and services through online. The study recommended that since most of the respondents lack social media skills, internet and computer courses be introduced in schools. This included that university and colleges where students should be prepared on how to transact online business and internet marketing.