THE IMPACT OF ONLINE MARKETING ON SMEs

Abstract

In recent times, unlike in the past, small and medium enterprises (SMEs) have come to recognize the significance of Internet marketing and the competitive edge it affords them. This is probably why so many SMEs are making use of internet marketing to make more calculated choices that will result in sustained financial prosperity. Unfortunately, despite their importance, SMEs still find it almost impossible to compete favourably with bigger firms and speed up their performance in a rapidly changing business environment. The study, therefore, examined the main influence of online marketing on the business performance of SMEs. Specifically, the study determined the impact of social media marketing on the business performance of SMEs in Kwara State. The study was a survey consisting of 343 participants drawn from a population of 3,124 SME owners who were selected through simple random, purposive and convenient sampling techniques. The participants were purposively selected based on their registration with the Kwara State Board of Internal Revenue, with a sample size of 343. Multiple linear regression was used to analyse the hypothesis. The study results reflected in the model summary with an R square value of 0.666, implying that social media marketing significantly influences the business performance of SMEs in Kwara State. The model indicated a strong relationship between the dependent variable (business performance) and the independent variable (social media marketing). It is therefore recommended that more SMEs in Kwara State embrace online marketing to increase awareness of their products/ activities, improve their business visibility and expand their customer base through the utilization of Facebook, email, WhatsApp, Google, and Ad Words. In addition to the above, organisations and employees should be trained on digital marketing tools in order to be able to reach out to more prospective customers, meet up the pace of other bigger business owners and achieve greater financial stability.