Social Media a Key to Entrepreneurial Growth

Social Media a Key to Entrepreneurial Growth

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Social Media a Key to Entrepreneurial Growth

Literature review

             Social media development in the recent decade has been faster compared to the preceding decades, and much of these developments have contributed significantly to the unending changes that globalization is affecting. Far and wide are the impacts felt both in positive and negative pits (Danesi, 2018). However, difficult and complex the working structure of social media platforms is, it warrants the struggle of the users trying to understand how it operates. The impacts of social media, specifically on entrepreneurship have been observed and felt although scientific documentation on the same has been dismally done (Bucher, 2018). There are a few articles that give a review on the significance of social media to the growth of entrepreneurship and hence the importance of this research project on contribution to the library of these articles.

            To understand the impacts of social media on entrepreneurship perceived usefulness and ease of the end user has to be drawn, Using the Technology Acceptance model which utilizes the perception of end users on the ease and usefulness of the media in question (Davis, 1993). The perceived usefulness (PU) and the perceived ease of use (PEOU) by the end user of a given technology such as social media for a specific purpose like in business depend much on the consumer of the technology. The effects of this technology on different aspects such as business and entrepreneurship are determined by the end users who in this case can be the product consumers who happen to be anybody depending on the utility of the good of concern (Bell, 2018). If for instance, the good in question is universal, that is, it cuts across gender, sex, religion, and any other transcending factor, like a company offering a network subscription that matters Safaricom Limited Company, the users of this network are almost every other person you meet, and the response it gives if asked on the impacts of the social media depends on the Perceived Usefulness.

Integration of Social Media to Business

 In the past, the successful venture one could have ventured into to make a substantial amount of money is creating an industry, that means a lot of hard work, labor requirements, and quite several resources. In short success rewards only the hardworking. Revolution in the social media and the technological fabric has changed the notion of success that, when one needs to make millions and be a successful business person, smartness has replaced hard work, that is the industrialization era has come of age, and technological era is the thing (Brown, 2017). Think of a way to connect people, or communicate with ease, and there you make it. Social media today is the central notion to every idea, that is without its integration into business one, sooner or later will be edged out of business.

 The profit of any business depends on the volume of sales it makes every other day, and the volumes of sales depend on the number of customers a business can draw. So, in the end, the number of customers determines the success of the business which brings the concept of social media to the discussion (Nuggle, 2017). The entrepreneur's work is then to find a way for how the business to be known as much as possible. Apart from other business factors such as culture, education, and personal experience, technology takes greater significance in the influence of business success (Crane, 2016). Many firms are shifting their focus and even dedicating a huge share of resources to technology mainly to establish information technology policies, and systems and implement technologies that will ensure a reliable connection of the business to the outside world (Christopher, 2016). Technology especially social media sites that as Twitter, Facebook, and WhatsApp are the main sites to which marketing and business are being made known, so the larger the number of subscribers to your page or handle the larger the number of customers and hence the sales (Godey, 2016). This, therefore, shows the significance of companies and businesses to develop a separate department that only deals with the nature of the advertisement and social media integrations in view of increasing the business traffic or clients. Some business firms have gone even further into employing a team who are well versed with the current technology trades to ensure the business is up to date with the current happenings in the world of business (Levallet, 2018). Long gone are the days when businesses used to focus a lot on product promotion and advertisement through the intensive holding of roadshows and other mechanisms which were made to win more customers, all these ways have been summed up and singled out into the technology approach through social media. Social media adoption and integration into business is the best action on course right now, though it is expensive to integrate and maintain it saves a lot on costs (Teece, 2017). In the past people used to do physical advertisements for a limited audience and in a limited area, but technology is saving, human effort and at the same time increasing the vastness to which information can be relayed, that is the world is turning virtual as well as the people. Technology through social media technically is making the world a global village wherein a click of a button some transactions can be done between people from different continents (Miller, 2016). This act has opened up the world to many opportunities, as strangers can communicate and make some exchanges over social media platforms.

Importance of Social Media to Information Gathering

            The growth of social media and its widespread adoption both at the personal and business level is advantageous to entrepreneurs. It is possible to identify opportunities using data retrieved from social media because social media platforms, record suggestions and preferences acting as the primary source of information to what the business should understand and hence supplying the specific need to the new market or adjusting the old to fit the new demand (Bell, 2018). The data gathered in social sites have brought evolution in terms of the essential value of resources that are essential in the digital age. Using data mined from social media can provide a wealth of information about the available market gaps and possible recommendations (Pempek, 2009). The ability of entrepreneurs to understand the potential of information provided by social media users in terms of comments and reactions is vital in devising strategic plans about market needs. The data mined from social media platforms can provide support to the entrepreneur's perceived opportunities since the user's reactions on social media are first-hand opinions and respond to the current market needs (Holsapple, 2018). The coverage of social media is also huge due to the fact that access is not geographically limited, thus driving the development of global online communities. Entrepreneurs can access online communities in the process of collecting information about market gaps and opportunities available (Hussain, 2016). The Theory of Reasoned Action (TRA) shows that the reactions and comments of social media users are influenced by their attitudes and behaviors, hence the data on their reaction acts as the guiding frame in developing goods and services to suit their wants.

Impacts of Social Media on Business

 Since the onset of advanced technology in social media platforms, the face of business has changed tremendously, the adoption has been the game changer in business as there is a recorded positive impact in business as well as the entry of new online-friendly businesses. Literacy in technology is equally important in advancing entrepreneurial agendas which touch on looking for new opportunities and identification of target market (Fuchcs, 2017). The technology acceptance model (TAM) identifies the process by which users adopt and make use of technology. Perceived usefulness and perceived ease of use are the two key issues involved in the modeling of users' acceptance and usage of technology (Marangunic, 2015). Entrepreneurs and businesses benefit from the usage of social media as a resource from the perspective of enabling customer engagement and response to clients' complaints in a fast and convenient process. Using the information retrieved from social media, it is possible to identify the changes needed to be instituted either in the delivery of services or upgrading goods based on reviews from the users (Sekaran, 2016). The acceptance and integration of social media platforms into the daily routines of life by the people is an important consideration as the information obtained is first hand thus helping in drawing appropriate structures to respond to the existing opportunities.

Importance of Social Media to Small Business

             There has been a rise in small business since the time social media platforms have been integrated with business, this is attributed to the fact that social media provides the opportunity for small businesses to grow despite a lack of strong financial resources hence competing with established firms. Social media provide access to potential customers through the running of ads which are relatively cheap as compared to traditional advertising methods (Heller, 2011). One of the key advantages of social media to small businesses is the number of social media users who can be reached in a single post that costs less than $1 or even free depending on the needs of the business (Shuen, 2018)Small businesses capitalize on their inadequacy of huge sums of capital to develop effective strategies that are compatible with advertising opportunities presented by social media. The presence of perceived opportunities can be enhanced using social posts as interview questions to drive discussion about the possible options. Social media has become a way of life in the sense that many people make daily posts on various social media platforms, and access news, and updates about corporate development, and other daily life activities (Kaplan, 2010). It is possible to investigate the value of an opportunity by assessing the strengths and weaknesses of the current market forces and future developments.  It has been observed that the state that which social media users normally provide information is a similar form to traditional communication settings because people accept and normalize the use of technology.

             Based on the benefits accrued from integrating social media into business, it is considered to be an asset in small businesses as entrepreneurs use the information retrieved from online platforms. Access to markets is a key factor in setting the agenda for business in the face of competition (Zhou, 2013). Providing goods and services is not effective without ensuring the availability of markets that can facilitate sales to profitable levels. The effectiveness of social media in relation to marketing and advertising is measured by the benefits accrued from the use of social media to achieve sales goals (Rapp, 2013). social media has enabled e-commerce and online marketplaces since platforms such as Facebook allow users to advertise goods and services and information about payments. In the process of achieving online selling, customers leave comments which are used to improve the quality of services and goods. Online advertising is cheap as compared to traditional forms of marketing and makes it possible to reach a huge population (Trusov, 2009). Social media user engages in online community forums discussing their tastes and preferences. The online community forums facilitate access to information that entrepreneurs use to study market trends and understand the topography of the target population. Social media promote entrepreneurial growth by enabling access to information that helps in planning for strategic developments and critical changes to ensure the services and products offered reflect the market needs (Huda, 2019).

The Role of Business Leaders in the Effectiveness of Social Media

 Business success depends on the effectiveness of social media in enabling entrepreneurial growth, therefore the extent to which impacts can be felt depends entirely on the input of the business leaders. The ability to reach large markets and achieve marketing goals is dependent on the skills and knowledge about the handling of social media, women are best suited to succeed at using social media for both personal and business purposes because they are more expressive and dynamic (McCallum, 2009). It is important to understand the key skills and strategies that are needed to have good content that can attract users to one's post. Using social media for business purposes is beneficial when the content posted on microblogs is quality and relevant to the needs of the target population (Parra, 2011). This consideration brings in the creativity of entrepreneurs as the determining factor in increasing the number of visitors to the social media pages of the subject business. Understanding the role of social media influencers in driving the message to the audience is also critical since the online community works in a similar model as the traditional influencing methods. Growth and development of businesses are related to the efficiency of strategic plans and effective methodologies to avoid losses and threats to business survival. In the process of business growth, a business needs to remain competitive while offering quality goods and services (Ward, 2016). Social media can be used as a source of news about current market trends.

About five years ago, the structure of business management was very different in comparison to what exists today, the management used to hold meetings in closed-door rooms to deliberate on matters progress. The setup today is a bit different, it has the principle of virtual beings who are physically present but mentally absent, thanks to social media, where the conference can be held anytime with the stakeholders anywhere in the world that is through video conferencing (Kennedy, 2017). The operating and running costs of the businesses have been widely reduced for little costs are incurred during these meetings. Discussions and reports about the proceeding of the business are currently being shared by users of these platforms leading to timely report delivery and facilitating faster decision making. Advertising products or a new business venture is no longer a problem, for social media platforms such as Facebook provide room for such advertising using Google ads and even posting the business links, and products and even opening business Facebook pages from where the customers and interested individuals can follow the page to be kept up to date on the recent offers and happenings (Osterwalder, 2010). Most of the companies are linking their online platforms with social media sites such as Twitter, Facebook, LinkedIn, and YouTube blogs among others to ensure a real-time presence on the internet. The social media platforms have built the walk-together feeling where the businesses can handle or respond to some of the clients' claims, and compliments and even react to their compliments about goods and services offered. The customers can rate their satisfaction with the services or goods offered thus posing possible chances of consideration and improvement making the company remain relevant in the business (Munusamy, 2010).

            There are common areas in which social media has great impacts, such as cultivating strategic partnerships, increasing businessworthiness, and suppliers and customer contacts. It has been also used as a marketing and communication tool translating to greater growth of businesses such as SMEs (Kiveu, 2013). The SMEs have grown due to the establishment of databases that are used in generating reports and details of a customer facilitating faster and cheaper communication with the customers. Social media users on Skype, Facebook, and Twitter have the freedom of sharing and exchanging content on views and encounters facilitating the sharing of knowledge, creativity, and open communication among the users. A creative environment for learning that is conducive to fostering entrepreneurship and innovation skills (Draycott, 2011).  The current generation is made up of digital natives who have at least basic knowledge of the use of social media making it possible for businesses to reach customers using these platforms. Through Twitter, the business and firms have shifted into microblogging which involves short updates pushed and received by the subscribers of the channel in question. On new product entry into the market, the platforms are getting transformed into social news channels where new items and links are posted and even allow the customers to vote for the products (Kietzmann, 2011). Through the customer voting exercise, the business can evaluate the items that are more prominent for they should get the most votes. In an attempt to be efficient at all levels of the firm, which is the interest of every business in attracting the best lot of customers translating to incomes and profits to the business, there is a great need to get the critics and views from business analysts and customers which are used as the basis for future planning. Since every business correlates with the public surrounding environment, it means at one point there is a need for customer interaction to gain their confidence and trust while at the same time developing the business and personal brands.

 On a daily basis, the total number of people on social media is growing. A new group of individuals is joining social networks and even turning out to be active in reading blogs and even giving reviews on shopping sites (Laudon, 2016). The online presence of these individuals has called for businesses to board the social media plane and reach the multitude which has the great potential of becoming their daily customers. The business has resulted in operating in the online space thus economizing and reducing costs related to physical floor space which even requires a lot of resources to establish as compared to an internet connection for the online one (Kaplan, 2010). Cyberspace allows businesses and customers to communicate freely with less control over information that they can share over social media. Many businesses are thriving as a result of the reviews given by the consumers about their products making other buyers get convinced about the product and end up purchasing without much work being done. 

            The development of more complex social media in-services makes it convenient to use social media as an e-commerce service, advertising media, and incubation point. Social media allows for the collection of different types of information as well as the community of users who have differing experiences. In essence, social media acts as a library of information with different opinions that are generally important in assessing the markets (Bertot, 2010). The information available on social media in the forms of posts, comments, and blogs is very important to the development of effective means of identifying opportunities and business ideas. Also, business people can learn about trends in the market including the shifting of customers' needs and products from competing firms. The input of social media to business can also be defined in terms of the value of education available to entrepreneurs. Social media platforms have specific pages run by credible organizations that provide information and advice on matters regarding social media branding and the positioning of one's products in the face of many competing firms (Hitt, 2011). Entrepreneurs make use of social media as learning and training platforms to access technical details and appropriate applications of other technologies. The synchronization of many social media services with other systems of businesses facilitates the collection of data that is essential for understanding the best ways to push the products in the market. The PU and PEOU discussion and analysis link into the hypothesis of the study based on perceived opportunity, perceived capabilities, Female early-stage activity, High job creation, Entrepreneurial employee activity, and Motivation which are well illustrated in different aspects of use and application of social media technology (Shroff, 2011).

H4: there is a significant relationship between High job creation expectations and internet users:

Over time the insurgence of social network sites is alleged to have had an impact on job creation across the world. The survey conducted in South Africa, for instance, serves as an informant on the relationship between the Internet and job creation (Castles, 2013). When internet access was made available the job creation was increased from 1.9-2.3 percent. If only a small introduction of such a small scale is responsible for such a magnitude of job creation it means that this is the option that should be considered the most in choosing the policy options for job creation. That is the creation of faster Internet infrastructure.  In South Africa, the increase in job creation is not only in the general sector but also a registered insurgence of employment in "skilled" occupations (Seto, 2011). There have been reduced employment opportunities all through the educational attainment range since the arrival of fast internet in Africa. That is there are increased opportunities for skilled while a registered decrease in unskilled jobs in all the education attainment levels.

H5: there is a significant relationship between Entrepreneurial employee activity and social network users.

The recent explosion of the internet and other social media sites has seen a positive impact it has had on businesses, it is becoming an indispensable part of entrepreneurial practices. This is so because it offers a good platform for entrepreneurs for brand development and business growth (Ritzer, 2010). Recent research much of it in the entrepreneurial sector has been revolving around entrepreneurs acquiring business opportunities. The presence of these strong social platforms encourages the entrepreneurial culture among individuals. These happen as the communication between peers happens, such interactions spark some new ideas which when capitalized on become a generated business. The platforms create a perfect place where ideas are borne through continued interactions and communications with peers. At the same time, the platforms offer an opening to marketing whatever your products are increasing the wider reach of the market (Hutter, 2011).  Business success depends on establishing a strong relationship with customers, entrepreneur thus capitalizes on this through social media platforms.

H6: there is a significant relationship between Motivation and social network users.

Through the constant interactions that entrepreneurs share on social media sites, some share their journey in the field of business which serves as motivation to those new in the field. When one is struggling with a new idea and maybe has reached a point of seeing no breakthrough then all of a sudden someone shares a success story of their journey it strengthens them (Fischer, 2011). As time advances social media connections are becoming so addictive that, one cannot do away with it. Even for a day makes one look like something is missing. This kind of buildup relations acts as a motivating factor for social media users to go about with their day's activities.

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