Impact of Social Media on SMEs

This article discusses the impact of social media on small and medium-sized enterprises (SMEs). It covers the managerial, organizational, and financial factors affecting the adoption of social media in SMEs. It also explores strategies for managing, organizational structure, human resources, information technology, research and development, operation and production, and sales and marketing.

Managerial factor- The adoption of social media in the SMEs mainly needs more
resources as well as demands some comprehensive strategy of management that are not easily
provided by the small and medium sized organizations. The factors that are included in the
managerial performance includes high maintenance of the resources and the resource is to be
kept running by someone. The managerial factors also has to keep all the information include in
the system up to date. SMEs always wants to keep a low risk in the organization.
Organizational System: The organizational systems gets impact with the use of social
media in organizational performance. The usage of system is mainly based on different tasks that
are based on the system. The performance of the organization mainly depends on actual benefit
of the organization from financial as well as performances of non-financial.
Strategies for Managing: The quality of the posts that are included in the organizations
is the most important part to the participants. The client free knowledge is important in strategies
management of SMEs along with having an expertise through the social media. The strategies of
managing the organization are mostly taken by the marketing manager of the company.
Corporate size: The size of the company make difference to the overall strategy of the
business, the timeliness of the business and the present of the social network on the organization.
Small and medium sized organizations becomes more successful by implementing innovative
ideas and establishing norms for doing the job in a better way. The SMEs needs to work more
hard as they have to invest more time as well as affect their success or fail dramatically.
Organizational structure: SMEs includes a strong global economy that is emerging in
almost all the countries to make the economic growth as well as continue the generation of

employment. Adopting the use of social media in the organizations, the SMEs can survive in the
circumstance of tough competition that includes global economic crisis as well as expand the
level of business goals.
Human Resources: The human resources are the late adopters of the technology that are
mainly related to social media. The social media is an important channel of scouting,
recruitments, making the company announcement and many other things. So, human resource is
needed for an organization to become activate in social media.
Information technology: The advancement of social media mainly enables the cultural
changes in social media that helps to congregate the regional markets as higher sales, advancing
the ideology of the business that is included in the organization. The modern information
technology in SMEs helps to transform the approach of traditional business making up some
advanced markets used for marketing as well as initiating a marketing that is focused on
consumer.
Financial factor: The financial as well as the non-financial performance includes the
cost reduction, the enhancement in the customer relations, as well as information that are related
to accessibility. The SMEs includes limited resources and with those resources they can reach
their target number of resources by advertisement mediums, holding campaigns and
implementing promotion strategies.
Research and development: The concept of networking is mainly used along with the
activity of social media marketing for all the SMEs. The social media networking concept is
important for increasing their business activities through establishment, growth as well as

development. There are many marketing techniques that helps the SME to develop their
business.
Operation and production: The use of social media platforms in the organizations helps
in building up of strategies that mainly includes t reduce the operational prices, reduce the price
of the product or the service, increase the awareness in public as well as support, finds some new
way to do the businesses. This also helps to optimize some innovative concepts that includes
sharing, co-creation as well as collaboration in the SMEs.
Sales and Marketing: The implementation of Social media helps to increase the
marketing process that also defines the sales of the organization. For defining the marketing
framework of an organization, the social media concept is generally used. It has be proved by
some of the researchers that sales is one of the most notable strategies that helps to increase the
sales in and SME.