Citibank Survey: Few Small Businesses Use Online Social Networks

A recent surveyof small businesses with fewer than 100 employees by Citibank/CfK Roper found that small business owners are not active users of social networking sites like LinkedIn, Facebook or Twitter.

According to the survey, 76% have not found social networking sites helpful in generating leads or expanding their business.  86% said they have not used online social networking sites to get business advice or information. 

These numbers are not surprising - the results are consistent with other surveys of this group.  The Network Solutions Small Business Success Index survey, for example, found earlier this year that about 12% of small businesses with less than 100 employees use social media. 

The social media use numbers are low because a lot of small businesses are not active online.  Only about half of all small businesses have a website, and many small businesses with websites are not doing much online beyond the website and email. 

Having said that, the use of social media by small businesses is growing very rapidly. 

The use of social media also increases the larger the small business is.  Both the Citibank and the Network Solutions survey results show this. 

And research conducted by Society for New Communications Research Senior Fellow and University of Massachusetts professor Nora Barnes shows that in 2007 39% of Inc. 500 companies (mostly larger small businesses) used social media.  Professor Barnes is releasing her 2009 study on the Inc. 500 later this fall and it will no doubt show much higher social media and online social network use by this group.

So for those who think the numbers are too low, I suggest looking at the glass as half-full.  After all, according to the Citibank survey almost half of all small businesses that are active online have found social networking sites useful. 

Comments

[twitter.com/shashib]

Hi Steve, thanks for highlighting the Network Solutions Small Business Success Index (SBSI) study. We have actually seen a rise in social media usage by small business since the first study. The second wave of our SBSI study saw an increase from 12% to 17% of small business members using social media. Please refer to our second wave of the SBSI study conducted this June at http://growsmartbusiness.com/wp-content/files/SBSIwave2.pdf. Slowly but surely, the adoption rate is increasing as more and more small businesses start taking SEO seriously and consider a strong online presence as key to small business success.

Best regards,

Shashi

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