78% of small businesses plan to spend time on social media

78% of small businesses plan to spend more time on social media

Sydney, April 2, 2013 – A whopping 78% of small businesses in Australia are planning to spend more time on social media in the coming 12 months according to a small business survey conducted in February. Of those businesses surveyed, as many as 65% report that social media has helped their business grow over the past 12 months.

Almost half are using social media to raise brand awareness and source new customers, whilst 40% are using it to generate new sales and 44% to provide networking opportunities, effectively contributing to business growth.

Gary Green, National Sales Director, Bibby Financial Services Australia said: “Social media is increasingly being used as an extra communication channel to raise small business’ profiles and reach new and existing clients. A third of the businesses surveyed said that social media has helped them improve customer service and stay ahead of competition and as many as 22% have used social media to recruit new staff.”

According to the Yellow Pages Social Media Report, June 2012, 83% of Australian small business are using Facebook, 27% Twitter, 20% are on LinkedIn and approximately 12% are using Google Plus or YouTube. Overall, on average businesses are spending over $3,000 a year on their social media presence.

The Bibby Barometer found that the current business climate has encouraged 38% of business decision makers to want to take more risks in the coming 12 months. In contrast, only 24% are taking fewer risks.

“With optimism on the rise and confidence in sales growth at levels not seen since July 2011, it is not surprising that businesses are using social media to generate new business and raise their profile. We believe small businesses are more willing to think outside the box in terms of promoting themselves and embark on new marketing strategies,” Mr Green said

Of the businesses survey, those most likely to use social media are young entrepreneurs aged between 18-39 years (66%) compared to older entrepreneurs aged 40-64 years (39%).

The survey found that Generation X are highly regarded as efficient workers and the most innovative contributors, and that Baby Boomers are considered to be the most customer service orientated but the most likely to be sceptical of digital media.

Generation Y are viewed less positively. Only 10% consider them to be the most efficient workers, 12% as good managers and 15% as the most customer service oriented. While 18% rate Gen Y the most innovative contributors, even on this measure they still trail Baby Boomers (24%) and Gen X (36%).

From those surveyed, business decision makers favoured employees of the same age, rating staff of their own generation higher than those of a different generation.
The Bibby Barometer is conducted bi-annually, surveying over 200 small business (non-retail) having between five and nineteen employees.

ENDS

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