The Effects of Social Media Usage on Small Enterprise Performance

Social media has reached a higher level of popularity in the online world. Today, most enterprises are using social media platforms to conduct business. Nevertheless, there is still a need to explore how the use of social media affects enterprise performance. This study aims to look at the impact of social media usage on the performance of small enterprises. There are two independent variables discussed in this study, namely communication with customers and video advertising. In general, small business owners are still seen to be less knowledgeable in the use of technology. This study is a quantitative study using a questionnaire as a research instrument. A total of 351 small enterprise entrepreneurs were involved in this study and the data were analyzed using the Statistical Package for the Social Sciences (SPSS) version 22 software. The data obtained in this study were analyzed using descriptive statistics involving mean values and standard deviations. The effects of the use of social media and video advertising on the performance of small enterprises were tested using regression analysis. The findings of this study indicated that the use of social media is moderately high. Furthermore, the use of social media also has a positive and significant impact on the performance of small enterprises. Thus, several suggestions are discussed in this paper to raise awareness of the importance of using social media as a marketing tool in improving the performance of small enterprises.


Introduction
Social media refers to activities, practices, and behaviors in a community that gathers online to share information, knowledge, and opinions (Safko & Brake, 2009).Social media involves several important elements consisting of websites, services, and activities that run several processes, including the process of collaboration, sharing, and democratization of internet users (Junco, 2010).Since the 1990s, social media has gained worldwide popularity (Anitsal & Anitsal, 2013).The high rate of social media usage by internet users and registered social media is one of the motives for marketers to recognize the involvement of social media platforms (Carim & Warwick, 2013).According to the Digital Global Overview Report (2020), the world's internet users of more than 4.5 billion people and half of the world's population have used social media.The growth of social media has created huge opportunities for entrepreneurs to enter the world of technology entrepreneurship at a low cost.In Malaysia, internet users are also increasing, especially those aged 18 to 34 years, who are active users of social media (Statista, 2020).According to Faradillah et al (2020), social media such as Twitter, Instagram, and Facebook are used by most internet users to boost online businesses.These social media tools allow users to obtain more information.In addition, this includes finding, evaluating, and reviewing products and services that are important for people to shop online.Social media creates entrepreneurial trust in business dealings (Moscato & Moscato, 2009).Similarly, the advancement of social media can generate more profits by attracting and enticing potential buyers who are aware of the value of marketing performance through social channels (Shadkam & O 'Hara, 2013).Social media can also be used as a communication tool between merchants and customers (Kwok & Yu, 2013).This includes the development of internet users, high-speed connections, ease of use, and the spread of social media as appropriate marketing strategies for small enterprises (Goi, 2014;Zhou & Wang, 2014).Social media is also the fastest growing marketing channel (Corometrics, 2010) that is increasingly used by small enterprise entrepreneurs due to its relatively low cost, convenience, and flexibility (Pentina et al., 2012;Rugova & Prenaj, 2016).Based on a study by Ainin et al (2015), small enterprise entrepreneurs with limited financial capabilities can derive significant profits from targeted marketing strategies at no cost and require only modest IT skills (Derham et al., 2011).Thus, social media can narrow and close the gap between the strategy that has been planned and the implementation of the strategy that will be implemented by entrepreneurs (Kim & Ko, 2012).The use of social media has a very positive impact on the performance of small enterprises.Morgan et al (2006) stated that the technology and facilities provided by information technology to empower a business are useless if the ability to manage information and communication technology is at a weak level.Thus, Rodriguez et al (2015) revealed that the use of technology such as social media can help improve the performance of an organization.Performance, according to DeLone and McLean's information systems success model, is expressed as a positive effect derived from the use of social media in terms of an organization's financial and non-financial performance (Ainin et al., 2015).

Objective
• test the relationship between communication with customers in social media with performance small and simple companies.• testing the relationship between the use of video advertising in social media and performance small and simple companies.

Literature Research Communication with Customers Through Social Media
An entrepreneur needs to be trained to communicate well with the customers because wrong communication can frustrate all marketing efforts (Kushwaha et al., 2015).Compared to traditional communication, social media communication is more efficient, reduces costs, and results in the performance of viable small enterprises (Patil et al., 2014).Communication using social media also provides immediate feedback from customers (Ahmed et al., 2014) and leads to positive results in terms of improved performance and marketing effectiveness of an organization (Eid et al., 2013).Communication using social media will be successful if supported by appropriate product strategies, pricing strategies, and distribution strategies (Siska Mardiana, 2016).If the message conveyed is about a high-quality product, then the product should be of high quality and not sold anywhere so that the consumers do not feel cheated.In addition, the role of social media communication is also related to the efforts in convincing potential users to make a purchase because the message delivered is usually convincing.Therefore, communication using social media is a very important strategy for entrepreneurs to improve their business performance (Mardiana, 2016).
In general, communication serves as a tool for exchanging ideas and information with the aim of obtaining specific needs in daily life between the two parties (Asri, 2015).Samuel et al (2016) stated that communication through social media in business will have a significant impact on the market.Accordingly, social media helps maintain extensive communication between small enterprises and customers.Through social media, customers can provide feedback and share their opinions.This communication is very easy and can improve the relationship between the two parties.Thus, positive feedback from the customers can help improve the brand image and performance of the enterprise.

Use of Video Advertising on Social Media
Digital video ads were found to result in a significant increase in consumer awareness through online channels and an insignificant increase in overall ad awareness.Video ads at the center of the news, as opposed to placing them under the headline and above the news story or at the end of the news story, produced the highest level of appeal and product brand recognition.These findings also explained that video ads placed in the center of news stories are more likely to interfere with the readers' cognitive processing of news, which makes the video ads more effective (Rodgers et al., 2005).
Meanwhile, online advertising influences brand attitudes and buying intentions (Kok We Khong et al., 2010).Based on the analysis, the video element in advertisements has the strongest influence in shaping a good attitude towards the brand and buying intentions.These findings can encourage merchants to increase their efforts towards video features in online advertising.Sergio Balegno (2015) also found that video ads are very influential in measuring the performance of small and medium enterprises.Video ads do not only help increase the sales of enterprise products or services but they can also make customers brand ambassadors for their products or services.Thus, it can be concluded that video as an advertising medium plays an important role in the performance of small enterprises.
Additionally, Kevin (2016) stated that video advertising through social media improves business performance.The use of video advertising is more efficient and cost-effective than television marketing.The video advertising medium also attracts customers and encourages them to buy the product, besides improving business performance.Furthermore, informative video advertising has a positive influence on the value of advertisements.This shows that many customers think that video advertising has the ability to impart knowledge about a product or service to provide satisfaction to the customers.In addition, advertisements also need to have relevant information settings and adjustments to user interests to obtain customers' positive evaluations (Dhiyaa et al., 2018).

Small Enterprise Achievement
Based on a study by Nur Yuhanis Ab Wahab and Shuhymee Ahmad (2017), business execution is very important in a firm.Sound implementation can produce advantages such as board assets, abundant creation, and business opening.Thus, the business person should have the techniques or ways to deal with the assurance to further grow the business that he or she is running and executing.
In addition, Fruhling and Digman (2000) found that the use of the Internet can help businesses increase the number of customers and markets towards business growth strategies.Internet usage facilitates a business to expand its scope and core operations through market penetration or product development.This is further supported by Porter ( 2001) who found that the relationships formed through the internet have increased sales and generated opportunities to produce new products and services.
The use of effective marketing strategies will also assist managers of small enterprises in gaining a competitive advantage and achieving superior performance.Marketing strategy is an important prerequisite for an organization's ability to strengthen its market share and minimize the impact of competition.Briefly, marketing mix strategies consist of product, pricing, promotion, and placement strategies that influence organizational performance (Foroughi, 2012;Emmanuel, 2014).
Small enterprise performance can be seen from the satisfaction of owners or managers (dependent variables) towards profitability, turnover, and business development (Alasadi & Abdelrahim, 2007).This shows that the performance of small enterprises is not only profitdriven but is also influenced by many other factors.According to Indiarti and Langenberg (2004) on the factors that affect the development of small enterprises in Indonesia, most of the small enterprises in Indonesia operated through traditional ways in terms of production and marketing.However, in the current study, we are focusing more on internal organizational factors such as entrepreneurship, human resource efficiency, innovation, and sustainability.The explanation for each variable will be provided further in this paper.

Figure 1: Conceptual Model
Figure 1 shows the conceptual model of the study.Social media usage is an important research aspect as it provides an overview of the strategies that can be applied digitally by small enterprises to improve their performance.To construct this model, different theories from the literature were used.The figure shows the different linked variables to obtain

PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES SOCIAL MEDIA USAGE
• Communication with customers (Lauternbern's 4C's model) • Video as an advertising medium enterprise performance.This shows that social media usage is one of the factors that contribute to the improved performance of enterprises.

Research Methodology
This study aims to examine the impacts of social media usage on the performance of small enterprises.The current study was conducted in a district of the state of Selangor, namely Sepang, and the study used a quantitative approach by analyzing the primary data collected from questionnaires.A total of 351 small entrepreneurs answered the questionnaires through Google Forms.Each questionnaire comprises two parts, namely Part A and Part B. Part A is related to the demographic profiles of the small enterprise entrepreneurs and contains seven items, while Part B contains 10 items and constitutes two constructs, namely communication with customers and the use of video as an advertising medium.
In this study, each answer in Part B was designed using a Likert scale that categorizes scores according to the level of communication measurement scores based on Maria's (2020) study, and video advertising adapted from Sergio Balgeno's (2015).The scores are divided into five levels ranging from "strongly disagree" to "strongly agree."In this study, descriptive analysis was conducted to identify the demographic data of the respondents using frequency and percentage distribution values.
Based on Table 2, reliability tests were performed on the questions outlined in the questionnaire.According to Hasan et al. ( 2017), the reliability index in a test is most satisfactory if its value is 0.60; therefore, the test results can be identified based on Cronbach's Alpha values exceeding 0.60.Accordingly, Cronbach's Alpha value above 0.60 indicates that the reliability value is acceptable and at a good level.Next, statistical inference analysis was also conducted to test the effects of the independent variable on the dependent variable.Additionally, regression analysis was conducted to examine the effects of social media and video advertising on small enterprise performance.In terms of age, the majority of the respondents were around 31 to 40 years old (140 people (39.9%), followed by the age group of 41 years old and above with a total of 136 people (38.7%),21 to 30 years old with a total of 67 people (19.1%), and finally 18 to 20 years old with a total of 8 people (2.3%).

Findings
In terms of the respondents' education level, the number of respondents with SPM certificates is the highest with 197 people (56.1%), followed by diploma holders with 43 people (12.3%), and Bachelor's Degree holders with 42 people (12.0%).Finally, the respondents with SRP/PMR/PT3 constituted a total of 25 people (7.1%), followed by the respondents with STPM with a total of 29 people (8.3%), and undergraduates with 15 people (4.3%).In terms of business ownership, the majority of the respondents own a single business, constituting a total of 158 people (45%), followed by those working in private limited companies with 92 people (26.2%) and those with sharing ownership with 75 people (21.4%).
Finally, the respondents with other types of business ownership constituted a total of 5 people (3%), whereas only one person (1.4%) was working with a public limited company.
As for the division of business sectors, 184 people (53.4%) were from the manufacturing sector, followed by 101 people (28.8%) from the services sector, 31 people (8.8%) from the agriculture sector, 29 people (8.3%) from the construction sector, and 6 people ( 1.7%) from the mining sector.The results for the business period also show that most of the respondents have been in business for a period of 5 to 7 years, constituting 116 people (33.0%), followed by 2 to 4 years with a total of 100 people (28.5%), 8 to 10 years with 95 people (27.1%), and over 10 years with 40 people (11.4%).

Table 3: Linear Regression Analysis of Social Media Communication with Small Enterprise Performance
Based on Table 3, there is a positive relationship between social media communication with the performance of small enterprises.Specifically, communication with customers has a positive and significant effect on the performance of small enterprises with F = 155.944,p <0.001 and R2 = 0.309.This shows that 30.9% of the variance is contributed by the "communication with customers" variable in predicting its effect on the performance of small enterprises, where the regression path is also significant at the level of p < 0.001.Therefore, the hypothesis that communication with customers has a significant impact on the performance of small enterprises is supported in this study.As for the second variable, Table 4 shows a positive relationship between the use of video advertising on social media with the performance of small enterprises.Specifically, there is a significant relationship between video advertising with the performance of small enterprises with F = 306.788,p <0.001 and R2 = 0.468.This indicates that 46.8% of the variance is contributed by the "video advertising" variable in predicting its effect on the performance of small enterprises, where the regression path is also significant at the level of p < 0.001.Therefore, the hypothesis that video advertising has a significant impact on the performance of small enterprises is supported in this study.

Discussion and Recommendations
This study has proven a positive and significant relationship between the use of social media and the performance of small enterprises.Specifically, based on the linear regression analysis that has been conducted in this study, the use of social media can benefit the performance of small enterprises.These findings confirm the findings reported by Cervellon et al (2015); Garrido Moreno et al ( 2016), who conducted a study on social media towards enterprise performance, which showed a relationship between social media usage and enterprise performance.In addition, several other studies have also stated that the use of social media has a positive impact on the performance of small enterprises.Likewise, these findings confirm the findings reported by several researchers in Malaysia, such as (Nurfarahin, 2021;Khadijah et al., 2019;Suriate, 2017;Hafizie et al., 2013;Faradillah et al., 2019).Moreover, based on a study by Schniederjans, Cao, and Schniederjan (2013), the positive effects of social media usage on a firm's financial performance were evidently highlighted.In addition, these results are comparable to Harris et al.'s (2012) argument that small enterprises use a combination of offline and online networks for their business activities such as marketing and sales.They also revealed that the participants in their study were interested in both types of networking.Accordingly, meetings and face-to-face events are among the popular types of traditional media.
Another important finding supports the role of marketing capability in mediating the relationship between social media usage and hotel performance (H2).These findings are consistent with (Gamero et al., 2015;Merrilees et al., 2011;Michaelidou et al., 2011;Yu et al., 2014).While Merrilees et al (2011) highlighted the positive influence of branding and innovation as two high-level marketing capabilities on the strong marketing performance of small enterprises, Michaelidou et al (2011) revealed that social media practices are used as a marketing tool to achieve brand objectives.
Based on the results of the current study, the two methods of social media usage have a positive and significant relationship with the performance of small enterprises.Specifically, both social media communication and video advertising have a moderate relationship with small enterprise performance with R2 = 0.309, p <0.05 and R2 = 0.468, p <0.05, respectively.Thus, it can be concluded that the use of social media has a positive impact on the performance of small enterprises.
It is proposed that future research, among others, includes the method of in-depth interviews or focus groups with small enterprise entrepreneurs to obtain their views, perceptions, and experiences using social media.In addition, it is also important that other strategies related to social media are studied in the future; thus, we can identify the extent to which the use of social media among small enterprise entrepreneurs can help improve the performance of small enterprises.

Conclusion
Overall, social media apparently has the greatest potential for small enterprise entrepreneurs to conduct business.The main purpose of this study is to identify how the use of social media helps small enterprise entrepreneurs improve their business performance.The results showed moderate significant relationships of social media communication and the use of video advertising with the performance of small enterprises, respectively.This study has also shown that the entrepreneurs are involved in social media usage in their respective businesses.This situation shows that the world today has qualified for the widespread use of digital technology in society in order to be able to boost the business activities between entrepreneurs and customers.With the development of the world of technology across borders, small enterprise entrepreneurs must first have the knowledge and skills to use technology such as other social media applications for more opportunities.Thus, the study found that the small enterprise entrepreneurs are highly confident to improve their business performance.
In addition, the entrepreneurs also regularly communicate with their customers through social media about business-related matters such as company information, advertising of products and stone products, as well as customer feedback received through social media.Thus, in this study, the use of social media among small enterprise entrepreneurs significantly improves their business performance.In addition, they often communicate about their businesses such as marketing, product information, advertising, and feedback from customers through social media.Hence, it is evident that social media involvement in the field of entrepreneurship is increasingly existent in Malaysia.
Furthermore, the availability of various social media applications indirectly allows a business to grow more globally and efficiently (Azlizan et al., 2017).Apart from being able to save time, the latest social media applications introduced are also able to attract more users both from within and outside the country.Moreover, video advertising through social media applications also has a common power that further facilitates enterprises, particularly in building product branding through networking, communication, and community structuring (Erdogmus & Cicek, 2012).
It can be concluded that the small enterprise entrepreneurs in the current study indeed have an active involvement in social media.From the aspect of transformation, the majority of the respondents have a good level of satisfaction and profitability in their business performance as well as good relationships with their customers and business suppliers.Social media networks and online communication are indeed inevitable.Therefore, the increasingly encouraging development of technology has resulted in social media communication networks becoming a platform capable of enhancing the relationship between entrepreneurs and customers (Ahmad et al., 2012).
This study can help organizations that support small enterprise entrepreneurs to provide assistance in all aspects, for example, equipment and place of business.Thus, small enterprise entrepreneurs can fully master technological skills and improve the performance of their businesses.Past studies have also shown the various methods and ways for entrepreneurs to use technological skills in running and executing their businesses.Hence, in line with the government's aspiration to achieve developed country status by 2020, technology-based industries are seen as the largest contributor to the National Domestic Product (GDP) and its importance continues to serve the national economy.
In addition, the government also needs to identify the level of entrepreneur performance and provide assistance in terms of technology as stated in the Twelfth Malaysia Plan (2021-2025), which focuses on accelerating several potential growth drivers by leveraging advanced technology and digitization in line with the National Fourth Industrial Revolution (4IR) Policy and the Malaysian Digital Economy Blueprint.While the development of strategic and high-impact industries will be accelerated, the capabilities of entrepreneurs and enterprises, especially small enterprises, will also be enhanced.Therefore, the successful implementation of this measure will strengthen the competitiveness and resilience of the economy as well as make Malaysia an important player in the global supply chain for complex and high value-added products and services.