Social Network and Business Growth in Small and Medium Manufacturing Enterprises

Abstract

With the vulnerability of the business environment today, the Social network is considered as a weapon to secure important resources for small and medium enterprise firms. The aim of this study was to investigate social network and business growth in manufacturing Small and Medium Enterprises (SMEs) in Nigeria. This was achieved by examining the influence of the Facebook social network on manufacturing SMEs growth in Nigeria. In this study, manufacturing industry include agro-based, designed and manufacturing related services sectors. The questionnaire was designed based on likert scale of 1-5 with 1 as strongly agreed and 5 as strongly disagree. A total of 240 questionnaires were sent out to fully registered entrepreneurs with Corporate Affairs Commission Abuja and firms wit the Manufacturing Association of Nigeria (MAN) in Kaduna, Yola, Minna, Enugu, Port-Harcourt and Lagos towns where manufacturing is visible. A total of 210 questionnaires representing 87.5% of the distributed copies of questionnaires were returned and deemed usable. The data were analysed using percentage the linear regression for descriptive and inferential statistics respectively. The study established that 50.48% of the respondents made use of Facebook social network on a daily basis and the same percentage of respondents visit the Facebook sites for business purposes. Facebook social network was statistically significant in explaining the growth of manufacturing SMEs in Nigeria. The study concluded that entrepreneurs/firms in Nigeria took advantage of Facebook social network for their business growth. The study recommended that entrepreneurs/firms should join Facebook social network so as to help them in getting current and relevant information from far and wide to run their businesses. Also, the Nigerian government should create enabling environment for businesses by providing adequate infrastructural facilities that would enhance the growth of manufacturing firms through the use of social networks in the country.