SOCIAL MEDIA MARKETING AND THE PERFORMANCE OF MICRO AND SMALL ENTERPRISES IN OKADA, EDO STATE

Abstract

This study investigated the effect of social media marketing on the performance of micro and small enterprises (MSEs) in Okada, Ovia North-East Local Government Area, Edo State, Nigeria. Specifically, the study examined the influence of social media platform usage, frequency of social media use, and paid social media advertising on enterprise performance. A quantitative cross-sectional survey research design was adopted. The study population comprised approximately 7,000 registered and unregistered MSEs operating within the study area. Using the Yamane (1967) formula for finite populations, a sample size of 378 respondents was determined and selected through simple random sampling. Data were collected using a structured questionnaire designed on a five-point Likert scale. A pilot study established the reliability of the instrument, with Cronbach's alpha coefficients ranging from 0.76 to 0.84, indicating satisfactory internal consistency. Of the 378 questionnaires administered, 370 were correctly completed and returned, representing a response rate of 97.9%. Data were analyzed using the Statistical Package for the Social Sciences (SPSS) Version 26. Descriptive statistics were employed to summarize respondents' characteristics, while Pearson Product-Moment Correlation and multiple regression analyses were used to test the hypotheses at the 0.05 level of significance. The findings revealed that all three dimensions of social media marketing had significant positive relationships with the performance of MSEs. Social media platform usage exerted the greatest influence on enterprise performance (β = 0.385, p < 0.001), followed by frequency of social media use (β = 0.294, p = 0.001) and paid social media advertising (β = 0.182, p = 0.003). Collectively, the three predictors explained 52.4% of the variation in MSE performance (R² = 0.524), leading to the rejection of all three null hypotheses. The study concludes that effective utilization of social media marketing significantly enhances the performance and competitiveness of micro and small enterprises in semi-urban communities. It recommends that MSE operators strategically utilize appropriate social media platforms, maintain consistent online engagement with customers, and invest in targeted paid advertising campaigns. Furthermore, government agencies and enterprise development organizations, particularly the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and the Bank of Industry (BOI), should intensify digital marketing training and capacity-building programmes to improve the digital competitiveness and sustainability of MSEs.