Small Businesses Expanding Use of Social Media, Report Says

According to the Small Business Success Index, use of social media by small businesses has doubled over the past year. Experts talk about how small businesses can leverage social media right now.

By Avery Fellow | February 25, 2010

Adoption of social media by small businesses has doubled over the past year, according to the Small Business Success Index, a study sponsored by Network Solutions and the University of Maryland School of Business. In 2009, approximately 25 percent of small businesses reported using social media, a jump from 12 percent the year before, the study says.

"It will likely increase much more because the amount of press social media is getting," said Shashi Bellamkonda, social media swami at Network Solutions.

When adopting a social media strategy, Bellamkonda recommended that companies first set up Google alerts for their company and product name or search terms that customers may use to find them.

"Start with your own customers first," Bellamkonda said. "You are already engaging with them, so carry that same thing to the virtual feed."

Daniel Odio, cofounder of mobile app developer PointAbout Inc., agreed that social media is about reaching out to existing contacts. On his blog post, "Finally: How to leverage social media, right now," Odio defined social media as "a tool to distribute a message to a large audience all at once, who have chosen to be in touch with you."

Daniel Odio

Bellamkonda said companies should get on LinkedIn, Facebook and Twitter, and create a profile on Yelp.com. Odio added blogs, videos and mobile technologies to the must-have list.

"All these tools are free, but if not used properly, they can be time consuming," Bellamkonda said.

"You have to learn new skills, and you have to dedicate time to utilizing those skills," Odio said. "You can’t just buy an ad and be done with it."

Most of the companies surveyed for the Small Business Success Index reporter that social media use is not profitable yet, but 45 percent say they expect it to be this year.  

Bellamkonda is moderating a panel on social media strategies on Friday, February 26, 2010 at the Tower Club in Vienna, Virginia. The event is hosted by the Northern Virginia Technology Council.


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