Banking and Finance Project Topics

Impact of Social Media on Small Medium Enterprises in Northern Part of Nigeria

Impact of Social Media on Small Medium Enterprises in Northern Part of Nigeria

Impact of Social Media on Small Medium Enterprises in Northern Part of Nigeria

Chapter One

Objective of the study

The objectives of the study are to;

  1. Investigate the extent of social media usage among SMEs in the northern region.
  2. Identify the challenges faced by SMEs in utilizing social media for business purposes.
  3. Assess the perceived benefits and drawbacks of social media adoption for SMEs in northern Nigeria.



Concept of Small Scale Business

The issue of what constitutes a small scale business is a major concern in the literature. Different authors have usually given different definitions to this category of business. SSBs have indeed not been spared with the definition problem that is usually associated with concepts which have many components. The definition of businesses by size varies among researchers. Some attempt to use the capital assets while others use skill of labour and turnover level. Others define SSBs in terms of their legal status and method of production. Storey (2012), tries to sum up the danger of using size to define the status of a business by stating that in some sectors all businesses may be regarded as small, whilst in other sectors there are possibly no businesses which are small. The Bolton Committee (1971) first formulated an “economic” and “statistical” definition of a small business. Under the “economic” definition, a business is said to be small if it meets the following three criteria: It has a relatively small share of their market place, it is managed by owners or part owners in a personalized way, and not through the medium of a formalized management structure and it is independent, in the sense of not forming part of a large business. Under the “statistical” definition, the Committee proposed the following criteria: The size of the small business sector and its contribution to GDP, employment and exportation. The extent to which the small business sector’s economic contribution has changed over time and applying the statistical definition in a cross-country comparison of the small businesses’ economic contribution. The European Commission (EC) in International Research Journal of Finance and Economics – Issue 39 (2010), defined SSBs largely in terms of the number of employees as follows: businesses with 0 to 9 employees – micro business, 10 to 99 employees – small business and100 to 499 employees – medium business. The UNIDO also defines SSBs in terms of number of employees by giving different classifications for industrialized and developing countries (Elaian, 2006). The definition for industrialized countries is given as follows: Large businesses with 500 or more workers, Medium businesses with 100-499 workers, Small businesses with 99 or less workers.

While the classification for developing countries is as follows: Large businesses with 100 or more workers, Medium businesses with 20-99 workers, Small businesses with 5-19 workers; Micro businesses with less than 5 workers. The Nigeria Statistical Service (NSS) considers businesses with fewer than 10 employees as small scale businesses and their counterparts with more than 10 employees as medium and large-sized business. However, the National Board for Small Scale Industries (NBSSI) in Nigeria applies both the “fixed asset and number of employees” criteria. It defines a small scale business as a business with not more than 9 workers, and has plant and machinery (excluding land, buildings and vehicles) not exceeding 10 million naira. Osei and Ogoni (2013) classified small scale businesses into three categories: micro businesses employing less than 6 people, small employing between 6 and 29 employees. Teal (2002), classified micro business less than 5 employees, small business 5- 29 employees, medium business 30–99 employees and large business 100 and more employees. It is clear from the various definitions that there is not a general consensus over what constitutes an SSB. Definitions vary across industries and also across countries.





In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.


Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.


According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.

This study was carried to examine Impact of social media on small medium enterprises in northern part of Nigeria. Selected SMEs in Southern Kaduna form the population of the study.




This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.




It is important to ascertain that the objective of this study was to ascertain Impact of social media on small medium enterprises in northern part of Nigeria. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing Impact of social media on small medium enterprises in northern part of Nigeria


This study was on ascertain Impact of social media on small medium enterprises in northern part of Nigeria. Three objectives were raised which included: Investigate the extent of social media usage among SMEs in the northern region, Identify the challenges faced by SMEs in utilizing social media for business purposes and assess the perceived benefits and drawbacks of social media adoption for SMEs in northern Nigeria. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from selected SMEs in Southern Kaduna. Hypothesis was tested using Chi-Square statistical tool (SPSS).


In conclusion, this study has provided valuable insights into the impact of social media on Small and Medium Enterprises (SMEs) operating in the northern part of Nigeria. Through a comprehensive analysis of social media usage, challenges, benefits, and recommendations, several key findings have emerged:

Firstly, the study revealed that while social media usage among SMEs in the northern region is increasing, significant challenges persist. Limited access to internet infrastructure, digital skills gaps, cultural barriers, security concerns, and infrastructural deficiencies were identified as major obstacles hindering SMEs’ effective utilization of social media platforms.

Despite these challenges, SMEs recognize the potential benefits of social media adoption, including enhanced marketing opportunities, improved customer engagement, expanded market reach, and increased brand visibility. However, realizing these benefits requires targeted interventions to address the underlying barriers and facilitate the adoption of social media best practices among SMEs in the region.


Based on the study findings, several recommendations are proposed to support SMEs in leveraging social media for business growth and competitiveness in northern Nigeria. These recommendations include:

  1. Invest in improving internet connectivity and infrastructure in the northern region to ensure reliable and affordable access to social media platforms for SMEs.
  2. Provide capacity-building programs and training initiatives to equip SME owners and employees with the necessary digital skills to effectively utilize social media for business purposes.
  3. Tailor social media marketing strategies to align with the cultural norms, preferences, and languages prevalent in the northern region, thereby enhancing engagement and resonance with target audiences.
  4. Implement measures to address security concerns related to social media usage, including data protection, privacy policies, and cybersecurity protocols to safeguard SMEs’ online presence and digital assets.
  5. Formulate policies and regulations that promote a conducive environment for social media adoption among SMEs, including incentives, subsidies, and regulatory frameworks to support digital entrepreneurship and innovation.


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