Journal Week 5: Social Media's impact on small businesses in India

There's no doubt in 2025 that the internet is now a utility that is used around the world for a number of purposes. Social and political revolutions have taken place thanks to internet communities created through Facebook and Twitter. Natural disasters have been reported faster and aid has been delivered quicker thanks to first-hand reports of destruction. International business has spread because of the marketing and influencing through social media apps.

In India, specifically within the small business community, social media has had a great impact on the brand relations, sales, and marketing of various micro and small enterprises (MSE) (Madhumithaa et al., 2023). It has also allowed entrepreneurs greater access to financial services and resources that can help grow their businesses within their communities. "...social media (including Facebook, Instagram, and Twitter) has played a crucial role in empowering MSEs by providing them with a platform to voice their concerns and advocate for policies and regulations that support their growth and development (Madhumithaa et al., 2023)." 

Their study was small—25 participants with an almost even split between male and female were surveyed with a 5-point Likert Scale to determine the impact of social media on consumers in India. Some of the qualitative data collection found:

• 44% of participants agreed/strongly agreed that social media impacted customer purchasing behavior, with 16 % remaining neutral
• 52% agreed/strongly agreed that social media marketing contributed to increased sales
• 56% agreed/strongly agreed that social media helped companies build strong relationships with their consumers

Although the survey itself was short, the questions and their results combined with a literature review reveal a few key things about MSEs in India.

First, 71% of people will buy products referred by social media (Madhumithaa et al., 2023). Having a social media marketing plan as an MSE is a significant advantage in this way. This implies that entrepreneurs, companies, and small business owners should have a general idea of how to market their product or services accurately to hit the right audience.

Second, 84% of MSEs have used social media to reach out to potential/new consumers (Madhumithaa et al., 2023). Thus, social media has provided a platform for MSEs to gain financial stability in a competitive market.

Finally, social media helps focus resources in finding consumers; instead of putting time or money into a more traditional form of advertising that doesn't draw as much business or traffic, social media cuts out the middle steps and brings the supply directly to the demander (consumer).

The challenges I could see with this strategy would revolve around accessibility for consumers. India is the most populated country in the world now, and as with all countries there is a varying of socio-economic classes. Social media relies on mobile technology as well as internet. If these resources do not exist in more rural-adjacent communities, the MSEs and the consumers in those areas may not be able to capitalize on a plan like this. Digital literacy is another major component of this; without the knowledge of both the business owner on how to implement a social media strategy and the consumer for how to access it, this may not be a solution for all.

Social media has had a huge impact in America: the majority if not all of the most popular social media apps have been created here or are owned by American tech companies. For other countries to be able to use these models in their own business communities offers them the same advantages that small American businesses have when employing the correct social media marketing strategies. It also allows for India to generate its own internal small business revenue instead of solely relying on outsourced consumer goods for everything. This leads to entrepreneurial opportunities within small communities across the country, and also opens up job opportunities within bigger companies who can hire and bring on professionals to drive these marketing campaigns for them.

It's clear that the advent and evolution of social media has changed the business landscape internationally. Social media jobs barely existed 15 years ago. At best, someone may have monitored a business's Facebook page and posted about sales and upcoming deals. Now, some companies have marketing divisions that focus entirely on social media campaigns and strategies, and there are a number of platforms to rely on. One can only imagine what small business marketing will look like in another 5 years.

References

Madhumithaa, N., Mishra, A., Sruthi, S., Sivaperumal, K., & Adhav, S. (2023). Implications of social media and socio-economic activities on micro and small enterprises in India. International Journal of Professional Business Review: Int. J. Prof. Bus. Rev., 8(4), 5.