Impact of Social Media on Entrepreneurial Performance: Special Reference with Small and Medium Scale Enterprises in Batticaloa District

Abstract

Social media applications have become most efficient and effective tool for Small and medium enterprises (SMEs) also it plays a vital role not only in developing countries’ job creation, productivity, innovation and economic growth but also in developed countries [2]. Further at present, firms of all types are adopting Information and Communication Technologies (ICT) around the globe, not only for cutting costs and improving efficiency, but also for providing better customer service to the customer. In this line Online social media is a new world of networking, where people can exchange ideas, experiences, and contacts [3]. Therefore, this study examines the relationship between impact of social media on entrepreneurial performance in Batticaloa District in Sri Lanka and its four factors which are Increase in sale, Customer relationship, Market Access and Cost reduction. The study was conducted through a survey questionnaire covering a convenient sample of 100 respondents drawn from 120 SMEs which use the online social media in Batticaloa District in Sri Lanka. Both qualitative and quantitative methods were used to analyze data. The findings reveal social media allows businesses to communicate speedily and cheaply with customers. Further the result show social media support to manage and communicate with their customers more effectively. However, training of social media and provision of business solutions can encourage more SMEs to adopt the use of social media on their business which lead to their growth. In addition, government should be keen on the current trends of technological adoption by SMEs to come up with policies that encourage the growth of the SME sector.