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Analysis / Business

SMEs Question Value Of Social Media

More than half of Britain’s small to medium-sized enterprises (SMEs) now use social media, a new survey has found. According to the research, 52% of those questioned use websites like LinkedIn, Facebook and Twitter.

However, of that 52%, over half (27%) expressed serious doubts about the value of the popular networking sites. A surprising 21% described them as ‘not useful’ and 6% went even further, labelling them ‘useless’. Only 7% of respondents who use social media described it as ‘very useful’ for their businesses, with 18% opting for a more muted ‘useful’ description.

It’s clear that, while a lot of users are certainly trying out social media for their businesses, many remain unconvinced of its benefits. I believe that social media does hold a great deal of potential for many SMEs. Its conversational, real-time nature makes it ideal for entrepreneurs and small, dynamic firms which often have much more relaxed attitudes towards public relations than big corporations. Also, sites like Twitter can provide valuable and cost-free feedback on customer and client satisfaction.

However, small businesses are a diverse bunch and what works for one company may well not be suitable for another, so it’s likely that the figures reflect the business owners whose firms aren’t suited to social media because of the sector or market they’re in.

Other key findings from the survey of 5,800 business owners include:

  • Nationally, 19% of SMEs still do not have a website.

When asked: “What information/capabilities does your website give you?”, 19% of those surveyed stated that they did not have a website.

76% said they used them to list contact details, 74% said they used their sites to provide product information and 35% found their websites useful for generating sales leads. Additionally, 27% said they used their websites to publish testimonials and case studies and 19% used them to directly sell products and services using systems such as PayPal or secure card processing software.

  • Almost a fifth of small firms still only communicate with customers and suppliers through traditional means.

When asked “In what situations do you use electronic media?”, 18% of respondents said they only marketed to new customers via traditional means such as over the telephone, face-to-face or through the post. The figure was 16% for contacting existing customers and 17% for communication with suppliers.

  • The time spent dealing with spam emails is the biggest concern for business owners in relation to their increased reliance on technology.

When asked: “What are the drawbacks to increased use of technology?”, 71% listed time spent in dealing with unwanted emails, making it the biggest concern among those surveyed. Electronic fraud emerged as the second most popular choice, finding favour with 61% of business owners, followed by the costs involved in keeping up to date with software and hardware, on 51%.

  • Internet connection speeds are the biggest concern among SMEs in relation to workplace systems.

When asked: “Are the following systems adequate for your current and future needs?”, 24% of those surveyed described their internet speeds as ‘inadequate’. By comparison, only 6% of respondents described their telecommunications provision as inadequate and just 12% applied the description to their software provisions.

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Phil Orford joined the FPB in February 2008 as Chief Executive. Following a brief spell as a sales executive, Phil set up his first company in 1983 at the age of 21. In the years that followed, he was involved in a number of start-up companies, which eventually formed a small group employing more than 100 staff and which had a turnover in excess of £10m. In 2005, Phil left the group and set up a new business to assist small companies comply with environmental legislation through the use of Web-enabled apps and tools.