Impact of social media on small businesses

Social media has become a powerful tool for small and medium-sized enterprises (SMEs) in Nigeria, with the potential to transform the way businesses connect with their customers and grow their operations. Susan Okoh, the co-strategic planning officer of corporate banking at Diamond Bank, recently discussed the impact of social media on SMEs in an interview with CNBC Africa. With Nigeria being one of the largest consumers of production in Africa, Diamond Bank has strategically leveraged social media to support SMEs and entrepreneurs in the country. Through initiatives like BET (Building Entrepreneurs Today), Diamond Bank has been able to engage with business owners and aspiring entrepreneurs, helping them reach new markets and expand their businesses. The bank's digital-driven approach has enabled it to harness the power of social media in connecting people and markets. With Nigeria's large population and increasing internet and social media penetration rates, SMEs have been able to improve their productivity and profitability through social media platforms. By utilizing social media, businesses can increase their turnover, reach more customers, save on costs, and connect with markets both locally and globally. The ease of connectivity provided by social media has significantly reduced barriers to entry for new startups and allowed them to compete on a level playing field with more established businesses. While specific cost reduction percentages were not provided, Susan highlighted that being digitally-driven and automated can lead to lower costs to serve for SMEs. Additionally, collaboration and shared services opportunities on social media can further help businesses streamline their operations and reduce expenses. Looking towards the future, Susan emphasized the importance of digitalization, noting that the world of finance is rapidly evolving to meet the needs of tech-savvy customers. With the ever-changing landscape of social media platforms like Facebook and Instagram, businesses will need to stay ahead of the curve to effectively engage with customers and provide seamless services. As the digital era continues to unfold, SMEs in Nigeria have the opportunity to thrive and grow with the support of social media tools and digital technologies. Overall, the role of social media in empowering SMEs in Nigeria cannot be understated, and organizations like Diamond Bank are leading the way in embracing these digital innovations to drive business success.