SMEs increasingly use social media for growth

dubai - Small businesses have a better chance to succeed through social media compared to their larger counterparts

Starting a business as a young entrepreneur is never an easy undertaking. However, for small and medium enterprises (SMEs) in the Arab world, many of the hurdles associated with the challenge can be overcome through the use of social media channels.

According to the Arab Knowledge Economy Report 2015-2016, the number of Internet users in the Arab world is poised to climb to about 226 million by 2018. To capitalise on a myriad of opportunities presented by such growth, many businesses, especially SMEs, are transitioning their strategy to cover the digital world in their efforts to cost-efficiently reach out to their intended market. Recent studies have also found that small businesses have a better chance to succeed through social media compared to their larger counterparts.

Social media channels such as Facebook, YouTube, WhatsApp and LinkedIn are increasingly being used by SMEs and have become major business enablers, a report by Orient Planet Research has found.

In addition, a survey conducted by LinkedIn on the social media habits of SMEs in the GCC showed that 92 per cent of more than 260 respondents are already on social media platforms. Five per cent of those surveyed are now in the process of establishing their presence. Social media enables them to effectively reach and engage customers, partners and other stakeholders.

"Social media presents itself as an invaluable tool for SMEs due to the range of benefits that it has to offer and at a reasonable cost. These online social channels offer connectivity and transparency for SMEs to gain a competitive advantage. They are crucial given that many SMEs do not have the same level of resources as larger corporations, and are not able to compete in terms of financial or human capital resources," said Nidal Abou Zaki, managing director of Orient Planet Group.

In Dubai, SMEs represent 95 per cent of all local establishments, accounting for 42 per cent of the workforce and contributing around 40 per cent to Dubai's economy, while in Saudi Arabia, the sector contributes around 33 per cent to GDP and comprises nearly 25 per cent of the total labour force. The SME sector in Bahrain is more vibrant, accounting for 99 per cent of the total registered companies in the country and employing over 421,000 people, of which over 52,000 are Bahrainis.

- rohma@khaleejtimes.com