Abstract

This paper reports on a study exploring social media adoption and use by twelve small businesses. Results indicate that Facebook is the dominant platform used and it can provide small businesses with a virtually cost free and easy way to reach customers. Businesses reported immediate results from using Facebook; customers arrived in store after seeing Facebook posts. Participants felt there were minimal risks involved and none had experienced negative feedback or inappropriate posts. Most felt that using Facebook increased their competitive advantage due to their enhanced online profile. Despite some effort to engage customers, business to consumer transfer of information is the primary function of the Facebook pages studied. Page owners report limited training for and analysis of their Facebook activities. This indicates a need for further research in the small business context, focused on approaches to boosting customer interaction, to realize the full potential of Facebook engagement.

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