SOCIAL
MEDIA ENTREPRENEURSHIP AS A TOOL FOR NATIONAL DEVELOPMENT (A CASE STUDY OF
SELECTED BLOGGERS AND WEBMASTERS IN IKEJA, LAGOS)
CHAPTER
ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Nigeria is the most populous country in Africa and
has the potential to be one of the prime drivers of development on the
continent. Nevertheless, the country’s development is constrained by the weak
environment for broad-based economic growth. Achieving sustainable long-term
change requires a significant strengthening of policy formulation and
implementation processes. At its core, this involves the supply of, and demand
for, improvements in the business environment.
Social media entrepreneurship is a new phenomenon
that has changed how the business environment operates. Businesses are able to
gain access to resources and online exposure that were otherwise not available
to them. It has also helped businesses to increase their worthiness, cultivate
strategic partnerships and increase their contact with customers and suppliers.
It has become important for business owners and marketers to register their
presence on the social media which also work as a communication and marketing
tool which significantly grow their businesses.
The entrepreneurs on social media have
the ability of sharing their business ideas and encounters. This assists in
creativity, open communication and sharing of knowledge among users. Facebook,
Skype and discussion forums are examples of social media tools where large
numbers of entrepreneurs participate (Tapscott and Williams, 2008). The sky is
the limit with social media. Owing to of the flexibility of social networking
tools, businesses can realize different benefits. These according to Simon
(2012) are greater access to different audiences, increased patronage, improved
customer service, improved products and services, job creation and adoption of
favorable pricing practices. The 21st century has seen a shift in the way
businesses operates. Smith and Taylor (2004) reveal that companies are
presently experiencing several new unanticipated events and the development of
the Internet as a communication channel is almost certainly one of the most
influential factors. The internet has brought about several new elements – it
has made consumers more accessible, it has emerged with a completely new set of
communication tools that make the process of exchanging information much easier
and faster, and it has compelled companies to rethink how they are
communicating with their customers (Jaokar, Jacobs, Moore and Ahvenainen,
2009).Entrepreneurs, marketers and consumers are witness the appearance of
virtual social media. As of January 2012, there were more than 800 million
active Facebook users, with over 250 million of them logging in everyday. In
addition, the average Facebook user has 130 friends and likes 80 pages but this
figure is expected to expand with time. Additionally, over 3.5 billion pieces
of contents such as blog posts, web links and news stories are shared on this
social network (Digital Buzz, 2012). The Internet and the online social
networks allow individuals to connect with one another. It is important for
entrepreneurs and marketer to grasp how the Internet functions and the
expectations of its users.
Mangold and Faulds (2009) recognize
that social media allows an enterprise to connect with both existing and potential
customers as the number of businesses that fully operates online only continues
to increase all over the world. This has greatly reduced unemployment thereby
contributing to economic growth all over the world. Social networking has led
to the introduction of social media entrepreneurship and presented new ways of
communicating to expanse audiences on various Internet platforms. Different
kinds of organizations render various services through the social media all
over the world e.g. health, news, sports, education etc. (Kotler and Armstrong,
2011).
1.2 STATEMENT OF THE PROBLEM
There are many reasons
why individuals become entrepreneurs; it could be to earn money, to make a
difference to community / environment or simply passionate about it or to
fulfill a lifelong dream. Whatever the reason maybe, it is not a joke or a
simple task in just becoming an entrepreneur or to start a business, the
individual needs lots of resources such as capital, labor, technology/
technical know-how, and many other things. Location of this business and
visibility and increased patronage is another factor to consider. Entrepreneurs
extensively use the social networks to obtain access to a large population of
people all over the world through the internet and also use contacts in
decision making and sharing ideas. Social media Entrepreneurs operates their
business online, this has greatly reduced unemployment all over the world
(Greve and Salaff 2003). However, the researcher is examining social media
entrepreneurship as a tool for national development.
1.3 OBJECTIVES
OF THE STUDY
The
following are the objectives of this study:
1. To
examine social media entrepreneurship as a tool for national development.
2. To
examine the advantage so social media entrepreneurship.
3. To
identify the factors militating against social media entrepreneurship.
1.4 RESEARCH QUESTIONS
1. Can
social media entrepreneurship be used as a tool for national development?
2. What
is the advantage so social media entrepreneurship?
3. What
are the factors militating against social media entrepreneurship?
1.5 HYPOTHESIS
HO:
Social media entrepreneurship cannot be used as a tool for national development
HA:
Social media entrepreneurship can be used as a tool for national development
1.6 SIGNIFICANCE OF THE STUDY
The
following are the significance of this study:
1. The
results of this study will throw light on approaches to social media
entrepreneurship and how it can be used as a tool for national development.
2. This
research will also serve as a resource base to other scholars and researchers
interested in carrying out further research in this field subsequently, if
applied will go to an extent to provide new explanation to the topic.
1.7 SCOPE/LIMITATIONS OF THE STUDY
This
study on the social media entrepreneurship as a tool for national development
will cover the activities of the entrepreneurs on the social media and the
profitability with a view of determining its effect on national development.
LIMITATION OF STUDY
1. Financial constraint– Insufficient fund tends to impede the
efficiency of the researcher in sourcing for the relevant materials, literature
or information and in the process of data collection (internet, questionnaire
and interview).
2. Time constraint– The researcher will simultaneously engage in this study
with other academic work. This consequently will cut down on the time devoted
for the research work.
REFERENCES
Kotler, P. and Armstrong, G. (14th ed.)
(2011). Principles of Marketing. Pearson Prentice Hall.
Greve, A.
& Salaff, J.W. (2003). Social Networks and Entrepreneurship.
Entrepreneurship: Theory & Practice28(1), 1-22.
Mangold, W.
G and Faulds, D. J. (2009). Social Media: The New Hybrid Element of the
Promotion Mix. Business Horizons 52: 357-365.
Simon, A.
(2012). Management of the Innovation Process in Small Companies in Finland.
IEEE Transactions on Engineering Management 36(10), 120-126.
Jaokar,
M., Lewis, P. & Thornhill, A. (2009). Research Methods for Business
Students. Fourth. ed: Pearson Education.