Small Businesses Double Use Of Social Media: Study

Social media adoption by small businesses doubled during the last year, from 12% to 24%. And among those, nearly half anticipate it will be profitable within the next 12 months, according to the Small Business Success Index.

According to the findings, small business owners expect social media such as blogs, Facebook and LinkedIn to expand external marketing and engagement. Anticipated benefits include identifying and attracting new customers, building brand awareness and staying engaged with customers.

Among those using one or another form of social media:

75% surveyed have a company page on a social networking site;

61% use social media for identifying and attracting new customers;

57% have built a network through a site like LinkedIn;

45% expect social media to be profitable in the next twelve months;

Small businesses aren’t embracing social media blindly, however. Asked about their concerns, half of the respondents indicated social media programs take more time than expected. Another 17% worried that social channels give people a chance to criticize their business on the Internet. That said, only 6% felt social media use hurt their business’s image more than helped it.

Other findings include:

Company Web sites are a top technology investment in the next two years, with small businesses either adding new features/functionality to their existing Web sites or building one from scratch.

The ability to showcase their products and services online to attract new customers is second in the hierarchy of technology investments small business owners plan to make in the next two years.

Social media investments rank third in small business investments to be made in the next two years.

The Small Business Success Index is sponsored by Network Solutions and the Center for Excellence in Service at the University of Maryland's Smith School of Business.