Impact of Social Media on the Success of Small Businesses Owned by ABM

student in Leyte National High School

A Research Paper

Leyte National High School

Division of Tacloban City

Tacloban City, Philippines

In Partial Fulfillment of Requirements

in Practical Research 2

by

Abris, Anthony

Caliwan, Gerwin, C.

Juaniza, Iza Grace

Lampaya, Pauleen

Noguiras, Ayesha Nicole

Nuñez, Raul

Oteros, Crislian Jane S.

Ripalda Jr., Edwin, C.

September 2024
 CHAPTER I

This chapter contains information about the topic that is being examined, its historical

background in regard to previous research, and its justification, including the research gap.

that must be completed, as well as the primary objectives of the study. This chapter offers the

Subchapters: problem statement, research importance, scope, and constraints.

of the study and the definitions of terminology.

Background and Rationale

Social media has become widely used and integrated into a variety of contexts, such as

academic discourse and business. These days, businesses use social media as a potent tool for

information sharing, product and solution marketing, real-time consumer feedback, and

knowledge dissemination (Chandragiri, 2020). Rapid improvements in information and

communication technologies (ICTs) have increased the popularity and demand for social media

technologies. Social media platforms like Twitter, Instagram, Facebook, YouTube, and LinkedIn

are increasingly interconnected around the world. Small and medium-sized firms (SMEs), who

face financial and human capital restrictions, want personalized and cost-effective advertising

platforms (Khan et al., 2021).

Social media has transformed the competitive landscape for small businesses, which

account for about 90% of all business activity. Social media has expedited the world's economic

shift from an industrial to a knowledge-based economy. The high-involvement, high-loyalty

goods and solutions market, in which the organization's merchandise is more expensive and the

consumer undertakes significant product study and testing, suggests that the market for small
businesses using these networks is optimal. In the age of responsible investing, companies must

respond to their investors in real time (Eryüce & Aliyev, 2020).

According to Glavas et al. (201) and Hurmelinna-laukkanen et al. (2020), social media

connects businesses' internationalisation process and international business in terms of timing,

tempo rhyme, location and entrance mode selections, foreign market learning, and knowledge

recombination. Globalisation is making the world smaller. The global economy and social media

marketing are becoming more and more well-known. Small businesses are more approachable

and customer-friendly when they use social media. Exports are not increased by social

networking. Export performance is instead influenced by customer feedback, brand awareness,

international business contacts, and competitiveness (Eid et al., 2019). As they use social media

more, multinational corporations are researching foreign markets more quickly (Rialp-Criado,

2020).

Kraus et al (2019) stated that, in todays marketplace it is essential for small business/es to use

barious types of online technologies in order for a business to gain success.

In accordance to Jorgensen, Zuiker, Manikowski, and LeHew (2022) ,that through having

a social media presence has several benefits to a small business. In addtion Social media is used

by small businesses in order to foster the trust and brand recognition and greatly impact upon the

consumers attittudes and decision making. To further measure the impact that online

communication technologies have on small business success, an infused model developed by

Niehm et al. (2010) was adapted for this study. The infused model stems from the contributions

of the Diffusion of Innovation Theory and the Technology Acceptance Model (TAM).
 With all of the information provided above, the student researchers will attempt to

determine the impact of social media on small enterprises among ABM students at Leyte

National High School. Furthermore, the growth of small enterprises, which is a significant

variable (dependent) in this study, will be studied primarily to see whether it is influenced by

social media.

To be more specific about the research gap in this study, is all about determining the impact of

social media on the growth of small businesses. Additionally, this study will identify the precise

social media platform that Accounting, Business, and Management students utilize to advertise

their small businesses.

This study is unique in that it is limited to LNHS, a secondary school, as opposed to

other studies conducted at universities.

Statement of the Problem

This study aims to determine the impact of social media on the success of small business among

the Accountancy Business and Management (ABM) strand in Leyte National High School.

1. What are the social media platform used by ABM students who owns small business/es?

2. To what extent do ABM students who owned small business use social media platforms?

3. How effective is the use of social media by small businesses run by ABM students?

4. Is there a significant relationship between social media usage and success of small

business owned by ABM students?

Scope and Limitation

 This research aims to investigate the impact of social media on the success of small

businesses owned by ABM students at Leyte National High School. The study will examine the

specific social media platforms utilized by these student entrepreneurs and their perceptions of

how social media influences their businesses. It is important to note that the scope of this

research is limited to ABM students at Leyte National High School, and the findings may not be

generalizable to other schools or student populations.

The study is restricted to a single school, which could not be representative of other

pupils or companies. In addition the study, will rely primarily on survey to gather information.

While the research focuses on the positive effects of social media on business success, it is

acknowledged that other factors likely contribute to business outcomes.

Significance of the Study

Senior High School students. The study will give them important insight in to how

social media contributes to small business success and give them the knowledge and skills to use

social media in their future entrepreneurial ventures.

Small Business Owners. The result of the research can help small business owners make

the most of social media and make their businesses run better. In terms of promoting and

advertising the products.

Researchers. The study can add to what is already known about business and social

media, laying the groundwork for more research to come.

The general public. The research findings can significantly improve one’s understanding

on the importance of social media specially in the business industries.

Definition of Terms

Social Media. The use of social media (SM) has experienced significant growth in many

countries (Chokpitakkul and Anantachart, 2020), and its diffusion is presenting new

opportunities for entrepreneurs in many sectors.

Small Business. Small business/es is an independently run company that satisfies size

requirements set by industry or government regulations and is not the largest player in its

industry. These requirements frequently include caps on the number of workers, yearly income,

or other financial indicators. ( Small Business Administration, 2021)Are often advised to develop

relationships with external organizations that have the potential to assist business development,

survival, and growth. (Christopher T street et al,2019).

Impact. Influence means to have a direct effect of a specific something to the other

(Merriam Webster, 2024)

 CHAPTER II

Review of Related Literature

According to Kaplan, A. M., & Haenlein, M. (2021) in their study about the ‘’ Overview

and Insights for Small Businesses’’, it is stated that for many corporate executives today, social

media is the most important concept on their agenda. Consultants and decision makers work to

find methods that businesses can profitably utilize apps like Second Life, Wikipedia, YouTube,

Facebook, and Twitter. Social media platforms provide affordable means of connecting with

target consumers and raising brand awareness. Small business that uses social media in terms of

marketing frequently has been proven that created a lot of improvements in the business overall

performance, brand loyalty, and consumer engagement.

In accordance with Laroche, M., Habibi, M. R., & Richard, M.-O. (2020), the increased

use of social media significantly impact how companies respond to the needs and desires of their

customers and giving them more opportunities to offer their goods and services in a unique and

individualized way. To determine how much companies use social media platforms for

marketing purposes and how they impact brand recognition in the mobile service provider sector,

however, a larger body of research studies is still required. By interacting directly with

customers through social media, small businesses can improve customer satisfaction and build

stronger client relationships. Positive customer feedback and increased customer loyalty are

experienced by businesses that engage with their audience on social media platforms.

Social and digital marketing offers great opportunities for companies to increase their

brand awareness and sales. The use of social media has changed customer behavior and

consequently the way companies do business (Badlo et. al. 2021). Additionally, Tonye et. al.
(2022) stated that social media has become an online platform for businesses to market

products/services and to manage customer relationships. While more and more small businesses

have jumped on the bandwagon of social media in recent years. According to Emini (2021) more

and more consumers are present in social media platforms, which urges business owners to make

efforts to reach their clients in social media platforms.

Small businesses continue to make investments in social media with the hope that it will

help their sales force in improving engagement with customers. Social media use in business

markets has supported the growth and utilization of such technology (Agnihotri, 2020). In recent

years, social media has become increasingly common, with the most well-known

Social networking, content sharing, and internet access are examples of applications.

Social media gives businesses a lot of opportunities because of its instantaneous, stable, and

dependable nature. One such opportunity is internet marketing (Domson, 2021).

According to Auxier and Anderson (2021) this report provides valuable insights into the

prevalence of social media usage among Americans, examining the popularity of various

platforms including YouTube, Facebook, Instagram, and TikTok. The report reveals that

YouTube and Facebook are widely used by the general American population, while platforms

like Instagram, Snapchat, and TikTok are more prevalent among younger demographics (under

30). This data highlights the varying preferences and engagement levels across different age

groups, indicating the diverse ways in which social media platforms are utilized.

As explained by Dixon (2024) it's a list of the top social media platforms based on how

many people use them. It says that Facebook is still the biggest with over 2.9 billion people

using it every month. But other platforms like YouTube, WhatsApp, and Instagram are getting

more and more popular too. It's pretty cool to see how many people use these platforms, and
how they're changing the way we communicate and share information. This article is really

helpful because it gives us a good idea of which platforms are the most popular right now.

Based on Simplilearn study (2024) provides a comprehensive overview of the

transformative impact of social media on communication and interpersonal interactions,

particularly within the context of the past two decades. The article highlights the various benefits

of social media, including its role in facilitating connections with friends and family,

disseminating information, and promoting social causes. However, it also sheds light on the

potential drawbacks associated with social media use, such as cyberbullying, privacy concerns,

and the risk of addiction.

According to McKinsey's (2023) explains that social media is basically all the websites

and apps that help people connect with each other, share things, and work together. It's like a big

online community where people can connect with friends, family, and even businesses.

Businesses use social media to market their products, talk to customers, and get feedback. The

article also talks about different types of social media, like social networks (Facebook, Twitter),

media-sharing networks (Instagram, TikTok), discussion forums (Reddit), and consumer reviews

(Yelp). It talks how social media has changed the way people communicate and do business.

According to Wharton (2019) it explores how social media has become a fundamental

part of our lives, impacting everything from politics and commerce to personal relationships. It

discusses the rapid evolution of social media, highlighting the rise and fall of platforms like

Friendster and MySpace, while Facebook continues to dominate the landscape. The article also

examines the concerns surrounding social media, including data privacy, the spread of

misinformation, and the potential for addiction.

Review of Related Studies

Based on Silvano and Mbogo's (2022) study, the influence of selection of platform and

the strategies for a firm looking to use social media to its advantage in terms of success. As

explained by Statista (2024) that social media is a crucial role especially for small business/es,

with over 5 billion active users worldwide.In addtion social media platforms can significantly

benefit small business/es through increasing the brand awareness of a small business,promoting

content. Furthermore the article also suggest that social media itself has a great influence when it

comes to the competitive advantage for small business.

In accordance to Khanal, Akhtaruzzaman, and Kularatne (2021), social media plays a

significant role in the success of small businesses by facilitating stakeholder engagement and

promoting corporate social responsibility (CSR). They found that small businesses utilize social

media to communicate their values, vision, and actions related to environmental sustainability

and employee well-being. This, in turn, positively influences customer perception and loyalty,

ultimately contributing to the business's success.

According to Shrilekha and Sharmin (2022),they emphasizes about how social media is a

game-changer for small businesses because it lets them connect directly with customers and

reach a wider audience. It explains how social media platforms like Facebook can create a really

strong connection between a product and a person, which is great for advertising and marketing.

And also blogs can be used to get people talking about a business and its products, which can

lead to more sales.

Based on the findings of Chodak and Chawla (2021), that businesses can use Facebook to

promote their websites and get more customers without paying for ads. It's an experiment they
did where they tested different ways to share links on a Facebook page. They found that putting

the link in the comments section of a post was more effective than putting it in the main caption.

They also found that the time of day you post can make a big difference in how many people see

it.

Theoritical and Conceptual Framework of the study

Figure 1: Diffusion of Innovation Theory

Diffusion of Innovation (DOI) Theory, developed by E.M. Rogers in 1962, is one of the oldest

social science theories. It originated in communication to explain how, over time, an idea or

product gains momentum and diffuses (or spreads) through a specific population or social

system. The end result of this diffusion is that people, as part of a social system, adopt a new

idea, behavior, or product. Adoption means that a person does something differently than what

they had previously (i.e., purchase or use a new product, acquire and perform a new behavior,

etc.). The key to adoption is that the person must perceive the idea, behavior, or product as new

or innovative. It is through this that diffusion is possible.

Adoption of a new idea, behavior, or product (i.e., "innovation") does not happen simultaneously

in a social system; rather it is a process whereby some people are more apt to adopt the

innovation than others. Researchers have found that people who adopt an innovation early have

different characteristics than people who adopt an innovation later. When promoting an

innovation to a target population, it is important to understand the characteristics of the target

population that will help or hinder adoption of the innovation. There are five established

adopter categories, and while the majority of the general population tends to fall in the middle

categories, it is still necessary to understand the characteristics of the target population. When

promoting an innovation, there are different strategies used to appeal to the different adopter

categories.

1. Innovators - These are people who want to be the first to try the innovation. They are

venturesome and interested in new ideas. These people are very willing to take risks, and

are often the first to develop new ideas. Very little, if anything, needs to be done to

appeal to this population.

2. Early Adopters - These are people who represent opinion leaders. They enjoy leadership

roles, and embrace change opportunities. They are already aware of the need to change

and so are very comfortable adopting new ideas. Strategies to appeal to this population

include how-to manuals and information sheets on implementation. They do not need

information to convince them to change.

3. Early Majority - These people are rarely leaders, but they do adopt new ideas before the

average person. That said, they typically need to see evidence that the innovation works

before they are willing to adopt it. Strategies to appeal to this population include success

stories and evidence of the innovation's effectiveness.

 4. Late Majority - These people are skeptical of change, and will only adopt an innovation

after it has been tried by the majority. Strategies to appeal to this population include

information on how many other people have tried the innovation and have adopted it

successfully.

5. Laggards - These people are bound by tradition and very conservative. They are very

skeptical of change and are the hardest group to bring on board. Strategies to appeal to

this population include statistics, fear appeals, and pressure from people in the other

adopter groups.

Figure 2: Social Capital Model of Small Business Success

Niehm et al. (2010) introduced an integrated model that highlighted components of TAM and the

Diffusion of Innovation. The integrated model outlined both the use and acceptance of

technology for small, family-owned businesses. Both models (TAM and Diffusion of Innovation)
work together to explain a more holistic view of technology adoption (Niehm et al., 2010). The

model has been further adapted for this study and is in figure 2.

This adapted model outlines how the use of technology can contribute to business success, and

how owner demographics and business characteristics impact the use of technology.

To further measure the impact that online communication technologies have on small

business success, an infused model developed by Niehm et al. (2010) was adapted for this study.

The infused model stems from the contributions of the Diffusion of Innovation Theory and the

Technology Acceptance Model (TAM). Since the development of Niehm et al.'s model in 2010,

technologies and the methods utilized by both consumers and small businesses have dramatically

changed

Ho : There is a significant r4elationship between social media usage and success of small

business owned by Accountancy,Business and Management (ABM) students.