Making Micro Business Visible: Unlocking the Potential Through Social Media

Abstract

In recent years social media has seen to making its mark to be one of a platform for all businesses to reach their customers. Its influence shaping the business, culture, education, politics, career establishments, communication and many more has impact on many types of businesses regardless of its size. Micro business plays a significant role in further supporting the country’s development of economy and sustainability. In order to keep up with the growth of consumer preferences, it is vital that micro business to tap in social media marketing and delve deeper using the various type of social media. It would help put forward the brand, create awareness, maintain customer relationship and accumulate new customer. In turn, it will increase income, improve brand and expand market share. For the reason highlighted, this paper aims to review the various potential of social media have for micro business. This research is based on the study of various publication regarding social media potential or effect towards business. The study is limited to only articles published for the past five years on the selected topic. The findings revealed that they are various potential that social media has to offer for micro business that would enhance business performance.

Keywords: Advertisement, business performance, micro business, marketing, social media

Introduction

The goal of social media for micro businesses is to bring their products and services in front of new and existing customers via various platforms. Student entrepreneurs are more likely to use social media as a business platform provided they see it as a tool to improve their performance while also increasing their own satisfaction, according to Nawi et al. (2019). Customers are always ready to buy from entrepreneurs and business owners since they spend so much time on social media. Malaysians in general engage in mobile internet browsing, some use mobile email, and the majority engage in mobile gaming, demonstrating that consumers spend a significant amount of time online in social media (Shi & Ismail, 2021).

In making the business visible to the market, micro business owners can use any type of social media platform accessible on the internet to promote their brands or products. Twitter is the most popular type of social media site from which sentiment analysis data is extracted (Drus & Khalid, 2019). Social media for business can also be cost-effective since it will not require significant initial investment. As revealed by Syaifullah et al. (2021) study on social media and micro business performance, when players engage unpaid media to promote their products, their target and target consumers are also highly limited. Finding information on social media validates the business and allows users to learn more about the company.

This study highlights the type of social media and its potential towards micro business.

Literature Review

Micro Business

Micro business, also known as micro entrepreneur or micro enterprise, has no universally accepted operational definition. As described by Roffia et al. (2021), they found that ownership and governance/management were the most commonly used elements in the operational definition and that there is still no universally adopted operational definition of SMEs in use today. As a result, each country defines it by measuring the sales turnover and the number of employees employed by the company. Osano (2019) revealed that micro business respond quickly to government initiatives promoting private sector expansion and greater export-oriented economic growth, and play an important role in developing countries. Furthermore, when non-Muslim micro and small business owners receive comprehensive and suitable literacy training on the concept, their desire to employ Islamic financing solutions increases dramatically (Suci & Hardi, 2019). In addition, many micro businesses are unregistered, have no past work experience, do not keep financial records, and rely on problem-solving on a daily basis to run their operations. According to Oxenswärdh (2020), micro businesses provide a variety of services, are open to new ideas, innovative and inventive, flexible and lasting, and in pursuit of new knowledge.

The micro business has fewer than five employees and has limited assets, liabilities, income, and expenses. A study on micro business distinguished that low administrative, selling and financial expenses ratio are indicated that the management was making good efforts in reducing their expenses (Podile et al., 2019). As stated by Balaria et al. (2020), micro, small, and medium businesses (MSMEs) in the Philippines are defined as any economic activity/enterprise involved in industry, whether a sole proprietorship, cooperative, partnership, or corporation, with total assets of less than 3 million Pesos. Similarly, the US Small Business Administration (SBA) defines a micro business as a company with five or fewer employees and a startup capital of $35,000 or less (Smith, 2021). Furthermore, the Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) classified a micro business in 2012 as any business employing one to nine individuals with a capital basis ranging from one naira to five million naira (Emeh, 2021). More than 900,000 micro, small and medium enterprise in Malaysia according to Small Medium Enterprise Corporation (SMECorp, 2020) which about 78% of the number comprised of micro business and are the backbone of the country economy. The micro business as defined by SMECorp, comprises of either manufacturing or service sector, operating with less than 5 employees including the owner and have sales turnover of less than RM300,000.00 per annum (SMECorp, 2019).

Social Media

Social media is an internet-based platform that allows people to share content such as personal information, documents, films, and images quickly and electronically. There are several definitions for social media, including one developed by Aichner et al. (2021) noted that Social Media is a tool that connects people and added prior to 2010 it was a tool for connecting people with common interests, however after 2010, it transitioned to creating and sharing user-generated. Users interact with social media via web-based software or applications on a computer, tablet, or smartphone. According to Sharmin et al. (2021), smartphones and social media technologies, when used properly, are acceptable platforms for co-designing, co-managing, and co-marketing sustainable marketing experiences, and would have a good impact on local economies. Furthermore, social media is being used for knowledge translation and education aimed at healthcare professionals and general practitioner trainees, with researchers and educators using social media platforms to engage with them in order to increase adoption of digital knowledge and effect change in the clinical environment (Chan et al., 2020).

There are several types of social media, including social networking sites, which are an online vehicle for forming relationships with others who share an interest, a common background, or a real relationship. A study of college students on social media use, perceptions of social media communications, and awareness of the effects of social media on academic performance and personal development revealed that female college students spent more time on social media than male college students, and respondents' perceptions of the impact of social media on academic performance differed significantly by age group (Ahmed, 2020). The next category is social review sites, which are websites where people, businesses, products, and services can leave reviews. Soon (2020) reported in a study on the food industry in Malaysia that participants were less likely to purchase the affected foods if they were featured on social media as problematic. In addition, image-based social media platforms such as Instagram, Pinterest, Tumblr, and Flickr have become sources of health-related information and tools for public health in areas such as mental health and addiction, chronic illnesses, contagious diseases, surgery, prevention of injury, family planning services, and adolescent behavioral science (Fung et al., 2020).

Another type of social media is video hosting sites, which are websites that allow users to publish and share video clips with the general public or invited guests. Online broadcasting services in Malaysia are governed by the same regulations that control traditional broadcasting services, because online contents are freely distributed via the Internet, easily available to anyone, and aired without censorship (Islam et al., 2021). At the same time social media types also act as community blogs, discussion sites and sharing economy networks. Diabetes online communities enabled peer groups to search and receive assistance for living with diabetes, providing a vital supplement to what is available in healthcare institutions and the ability to improve psychosocial treatment (Oser et al., 2020).

Furthermore, a discussion site is beneficial to customers since it gives a visual that aids students in organizing evidence obtained mostly from readings. As noted by Virkki and Venäläinen (2020), online discussions were filled with fear-inducing pictures and meaning-making that stressed a projected risk to national security of European nations and their citizens posed by migrants' violence in the midst of increasing immigration. Social media also functions as a sharing economy network, which is an economic model in which private citizens share assets or services for free or for a fee, usually over the internet. According to Lang et al. (2020), the sharing economy has modified various business rules, one of which is the role of the firm and consumers, who can play two roles and become both providers and consumers, referred to as "prosumers." Interesting, according to Kent and Li (2020), there are currently no "theories of social media" for public relations, and that the characteristics of social media (networks, culture, relationships, dialogue) refer to a variety of unresolved possibilities that need to be explored in order for a more comprehensive understanding of social media to take shape.

Research Methodology

This research was conducted using a qualitative approach which describes a suite of techniques that deal with unstructured data that cannot be summarized numerically (Shelton & Goodwin, 2022). Data collection in this study was conducted through the collection of extensive literature studies and surveys. Literature studies are carried out by gathering several previous similar studies which include: research reports, journal articles and textbooks, both on-line and off-line.

Discussion

Social media posed a lot of potential for micro businesses in terms of brand awareness, marketing, customer relationship that would help the business performance in financial and non-financial.

Brand Management

The capacity to showcase a micro business's products or services is one of the benefits that social media can provide. Mason et al. (2021) discovered that social media gives businesses with virtual outlets to increase product/brand recognition among consumers. One of the primary advantages of social media for business is the capacity to establish genuine personal connections, which can be accomplished by utilizing existing supporters to demonstrate the benefits of using the products. Customers who like the product and leave comments on the website assist in understanding the customer's post-purchase behavior, therefore creating a voice through social media platforms is vital for humanizing the company (Jadhav & Nawale, 2021). Thus, social media also provides the potential to establish a corporate brand as a notable expert in a specific company, industry or society also known as thought leader. As stated by Akyol and Alatas (2020), people's decision-making processes are influenced by ideas formed by thought leaders and regular people. SMIs (social media influencers) have increased in importance as a source of influence over consumer behavior and decision-making. Trustworthiness and expertise revealed to be primary role of followers' purchase intention as SMIs translate their meanings to endorsed businesses and promote customers' positive behavioral intentions (Koay et al., 2022). This is critical for micro business brand building since customers are more likely to be aware of a product or service when they conduct research and exchange data. Due to various logo-related variables such as brand recognition, pride, and trust in the brand, donors are more likely to join in the project (Miraz et al., 2022).

Business Performance

Business performance is critical to the long-term viability of any company, particularly a micro business. The opportunity to engage customers through social media is enormous, thus micro businesses should offer new content on a regular basis to assist their customers in making purchasing decisions. Erlangga (2021) concluded that detailed explanations about the products being offered on social media had an impact on the purchasing decision variable for SMEs products because of its product characteristics that sets it apart from the others. Next, consumers are satisfied to see new content and will seek micro business when making a purchase if the business social posts is entertaining and useful. The existing reputation of the institution, the quality of the infographic graphics and content, and the speedy spread of information by social media platforms with professional participation all contributed to the success of information dissemination (Chan et al., 2020). Potential clients can express interest in a micro business and its products through social media in a simple and low-commitment method. Marzuki (2021), concluded that Micro Small Medium Enterprises in Parepare, Makassar Indonesia, use WhatsApp and Instagram to boost their product marketing and sales, as well as their preferred choice for advertising and marketing due to its low prices and opportunity to produce leads. Another strategy to boost micro business success is to use social media to drive electronic word of mouth that will attract potential customers. The findings of Nisar et al. (2020) revealed, that through embedded information and emotive effect, electronic WOM delivered through social media communities improves a firm's reputation and hence its performance. Therefore, it is vital for micro businesses to exploit social media by offering products or services that meets the expectations of consumers and customers in order to achieve desired financial performance.

Promotion

Micro businesses can benefit from using social media to promote their company, brand, product, or services, since social media is a perfect method to get smart, well-researched information across from new people, demonstrating business experience, and generating clients. When compared to electronic and printed media, online promotion is more effective in marketing through social media, such as WhatsApp, Instagram, Facebook, Twitter, websites, and online shops (Affandi et al., 2020). Going viral on social media is another method of business promotion; as people share the information with their networks, it spreads around the internet, potentially increasing the number of shares. To gather customer insights Sufian et al. (2020) argued that the materials supplied to customers must be creative in order to meet market standards with consumer expectations such as words, videos, photos, graphics, and messages. Micro businesses can also use social media to boost excitement about their products or services, which will attract more customers by leveraging social relationships as a platform. It also gives the company a collection of social media content to distribute over time. Pokémon Go improved user social relationships and increased player conversation, causing them to act more socially, motivate them to explore their surroundings, and make their daily routines more meaningful (Khajeheian & Kolli, 2020). Simultaneously, as revealed by Al-Rawi (2019) news stories that contain elements associated with positive emotions drive virality more than that which news or stories contain negative emotions.

Using social advertisements to promote micro business and share information is a low-cost option. Social media platforms such as Facebook, Instagram, and WhatsApp provide extensive targeting tools, allowing micro businesses to reach the correct audience while maximizing their money. According to Cheing et al. (2020), the cost of advertising on Facebook was viewed as inexpensive, which fit the financial status of Food & Beverage micro businesses, supported by reasonable data packages from major Internet service providers in Malaysia. Furthermore, social media aids in the retargeting of potential customers who have abandoned micro business items in their online shopping basket. According to a survey of Indonesian Generation Y, the most effective internet advertising is remarketing/retargeting and email marketing in terms of brand loyalty (Budiman, 2021).

Finally, proving return on investment is always a difficulty for micro business. With social media tracking and analytics tools, however, the whole impact of social media actions can be observed, from following to engagements to sales. SMEs in Malaysia are using Facebook Insights and Instagram Insights to assess consumer interaction and allow marketers, executives, and management levels to examine data before making active decisions to achieve particular goals (Jani et al., 2020). Hui et al. (2021) discovered that big data analytic elements such as information search, recommendation system, dynamic pricing, and personalization had a positive substantial influence on customer’s repurchase intent. Finally, via strategic operations and marketing-related business activities, big data and social media analytics may help B2B companies become profitable and sustainable (Sivarajah et al., 2020).

Reputation Management

Micro business reputation is crucial since it highlights the positive aspects of the business while also addressing the bad aspects. Better reputation leads to improved business performance and image. Isahak (2020) study found out that students enthusiastically agreed to suggest OUM to their friends, indicating that a positive reputation will attract more students. Micro business's reputation is made up of everything customers say about how they feel about the business and how that affects the organization. Since business reputation is important to social capital both offline and online, AKR owners can use social media to monitor and manage their reputation while also increasing their visibility and social media can help them determine how their business will move forward (Harun et al., 2021).

Business Communication

In contrast to traditional media, which only allows for one-way communication, social media allows for two-way conversation. According to a survey of Malaysian aborigine women, they use the internet to read online news and communicate, with WhatsApp being their preferred social media platform (Zanuddin & Shaid, 2021). Micro businesses could use social media to communicate directly with customers and supporters, as well as interact directly with product brands. In Malaysian small hospitality businesses, social media is used to better understand, establish, and manage relationships with present and potential consumers, as well as to safeguard a company's reputation (Siti-Nabiha et al., 2021). Consumers expect that the brands should become visible on social media and search out the business social accounts for customer service because they want business to respond quickly. Two-way communication is feasible with the use of social media technologies since customers may comment and express their thoughts, resulting in faster communication, cost savings, more staff awareness, improved customer service, and increased brand visibility throughout the region (Kumar & Ayedee, 2021). To date, many brands have embraced social media channels to provide customer service, respond to particular concerns, and resolve issues. Customer service via social media is expected to become increasingly more personalized, individualized, and pervasive in the future. Consumers already utilize social media messaging platforms to engage with others, and it gives fast replies, is economically scalable with the use of AI-driven chatbots, and can provide a more customized level of customer support despite the usage of chatbots (Appel et al., 2020).

Although social media is viewed as a means of spreading positive communication between retailers and consumers, emphasized that bad communication has an influence on micro businesses. False information on social media has become a "nesting ground" for spreading lies and rumors, causing widespread confusion and misunderstanding (Daud & Zulhuda, 2020). Micro businesses are changing crisis communication to deal with this circumstance and as established by Malecki et al. (2021), while social media allows specialists to swiftly communicate accurate information about threats, it also allows others to counteract this by spreading false information and exacerbating indignation. Having fully and maintained social media accounts, as well as a strategy in place, enable micro businesses being present and ready to engage in the event of a crisis. The sooner companies enter the field, the more control they will have over their organizational comments/posts, which are critical in today's increasingly digital and divided business contexts for developing, preserving, and safeguarding corporate reputations (Yeo et al., 2020).

Customer Management

Micro businesses may utilize the data generated by social media to make better business decisions since it produces a large quantity of data on their customers in real time. Marolt et al. (2020) observed that SMEs have well-organized existing customer data, indicating that they successfully communicate with their consumers, and that personal interactions with their primary clients assist them in gaining extensive information about their customers' preferences. Through audience participation on social media, micro businesses may evaluate sentiment about their brand. As Lim et al. (2020) discovered, companies are increasingly adopting social media platforms to communicate with individuals, and social media activity outcomes such as the amount of user comments, follows, or likes have an influence on brand equity. Furthermore, it is also important to understand how often customers are talking about the company online and how they feel about the product brand. According to a study on Brand Love, the impact of emotion on post-purchase behavior is higher for active social media users than for passive users (lurkers), as it increases their revisit intentions and mediates the link between pleasure and emotion for active social media users (Bigne et al., 2020).

Competitor Monitoring

Micro business also be informed when the competitors debut new items, conduct discounts, or release fresh reports or statistics if business keep an eye over them on social media. Competitive intelligence aids in improved decision-making, a better understanding of information collection and evaluation, increased efficiency and information flow, and the detection of potential threats and opportunities for organisations that could affect decision-making, performance, and competitiveness (Asri & Mohsin, 2020). Furthermore, government policies should be continuously implemented and assessed on a regular basis to have an influence on MSMEs' ability to compete in the global market. Things develop rapidly in the online world, and micro businesses cannot afford to be left behind (Affandi et al., 2020). In addition, women entrepreneurs must constantly learn new skills of knowledge and use of social media in order to minimise the challenges of limited resources, constant need for new digital skills, digital stress or even burnout due to internal and external demands on online presence, scanning, and maintenance of social media platforms in order to remain competitive and generate business growth (Olsson & Bernhard, 2021). Finally, maintaining a virtual ear on social media as social listening is important to remain aware about forthcoming developments in business sector that may have an impact on how micro business do business. The use of social listening in Twitter can create a map that itemises the feelings, opinions, and characteristics of the messages issued by users of the social network in relation to a specific topic, according to a sustainability study and the approach to the dialogue is fundamentally similar in more formal settings, confirming that social listening is a useful tool (Ballestar et al., 2020)

Social media is becoming a key aspect of a micro business's inbound strategy, as it allows them to share material with the proper audience and pique their interest in the brand, product, or service, leading to purchases. Inbound marketing is a method for attracting prospects to a company's website, converting them to leads, and then converting them into loyal customers and brand promoters (Dakouan, 2019). Participating in a social network allows micro businesses to establish their own brand presence by creating a profile, engaging with customers, and posting content and campaigns in the hopes that it will be widely shared among potential customers, increasing brand awareness quickly and significantly. According to Dabbous and Barakat (2020), millennials enhance their hedonic motive through social media, boost their online involvement, and increase their brand awareness, which leads to an increase in brand offline buy intention. Furthermore, it can boost purchase intentions through firm generated content (FGC) based on positive regressions between buy intention and both brand awareness and loyalty and purchase intentions (Poulis et al., 2019). Social media is a powerful platform for connecting with audiences to generate brand awareness, brand loyalty, and an effective platform for lead generation for micro businesses focused on community. Sohail et al. (2020) found that brand community, entertainment, interaction, and customization functionality were effective in generating total brand trust and loyalty in Saudi Arabia. Despite countless types of social media available online, micro businesses must be able to select the appropriate channels for their customers in order to have a positive effect.

Conclusion

It is obvious that social media provides a number of benefits, thus micro businesses should establish an online presence on social media. Entrepreneurial success can be boosted through the use of social media marketing in the homestay industry by determining the most effective social media platform to boost the homestay firm's success (Yong et al., 2021). Furthermore, cost is one of the primary factors discovered to be significant in the adoption of technology, such as the use of social networking sites, for micro businesses. The cost effectiveness of each initiative must be compared to its cost and related advantages, hence cost reduction is determined to be one of the key objectives of various organisations (Jermsittiparsert et al., 2019). Micro business should not lose the opportunity in the use of social media platform as their competitor is most likely doing so on social media. In business competition, SMEs with entrepreneurial skills in marketing, finance, connection development, and technical skills will have an advantage (Munir et al., 2019). Social media increases a company's exposure among potential consumers by allowing them to reach a broad audience with little time and effort. Needless to say, there are still a variety of offline techniques for micro businesses to advertise themselves that are still highly effective. In fact, some firms may do far better with these techniques than with social networking. Both outbound and inbound marketing tactics have advantages, and they may be utilised together to better effect, producing a synergy that allows them to function more successfully and reach the greatest number of people (Dakouan, 2019). Since micro business has unlocked the potential of social media, it is high time for them to get started in adopting them.

The limitation of this study is that it focuses mostly on the literature relating to business continuity and recovery strategies among the micro business. It is recommended that further research using survey with larger group of respondents and from different region for future studies to enhance the understanding of survival method adopted by micro business response to crisis.

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Ramzah, N., Ag Damit, D. H. D., Samat, M. F., & Ambad, S. N. A. (2024). Making Micro Business Visible: Unlocking the Potential Through Social Media. In A. K. Othman, M. K. B. A. Rahman, S. Noranee, N. A. R. Demong, & A. Mat (Eds.), Industry-Academia Linkages for Business Sustainability, vol 133. European Proceedings of Social and Behavioural Sciences (pp. 682-694). European Publisher. https://doi.org/10.15405/epsbs.2024.05.56