Ehizojie David Ighodalo
Department of Administration and Management
Crawford University
Ogun State
&
Oluwaseyi Omowunmi Popogbe
Department of Economics
Crawford University
Ogun State
Abstract
Businesses are fast realizing the importance of digital technology to enhance their productivity. This study, therefore, examines the impact of social media use on the financial and non-financial performance of MSMEs. Primary data were adopted for the analysis with focus on some selected Micro, Small, and Medium Scale Enterprises (MSMEs) in Ogun State, Nigeria. 280 valid responses were collated for the analysis and descriptive and logistic regression analyses were carried out. 152 females and 128 males participated in the survey. The findings showed that about two-thirds of the businesses sampled currently have their businesses on a social media handle and a large percent of them use Facebook as a platform to promote their businesses. More referrals, investment, and digitally skilled staff all significantly improved the financial performance of the businesses. On the other hand, social media visibility, investment in business, and digitally skilled staff positively impacted nonfinancial performance. Only two (business investment and digitally skilled staff) of the variables analysed significantly impact both financial and non-financial performance. The study does not find a significant relationship between other variables measured (such as online delivery of services and staff training) and the non-financial performance of the
MSMEs. The study recommended that MSMEs should employ staff members that are social media savvy and proactively attend to onlinew customers’ queries.
Keywords: Social Media, financial performance, non-financial performance, MSMEs, Ogun State
