Entrepreneurship and Economic Development through Social Media
Entrepreneurship plays a positive role in economic development, more so in assisting small businesses to achieve success in the market. Small businesses may not have the financial advantages possessed by bigger firms, and in this way, they are highly disadvantaged in terms of marketing. The social media is a preferable marketing strategy due to its cost-effectiveness and ability to reach a large number of people. The social media is also convenient as it allows immediate and prompt responses to the marketing strategies. The social media plays a prominent role in promoting a firm’s marketing objectives. While Facebook reaches the highest number of users and Twitter facilitates short and effective marketing content, Instagram facilitates picture content while You Tube accommodates video formats. The four social media platforms provide different advantages to entrepreneurs. This paper focuses on the effectiveness of Facebook, Twitter, Instagram, and You Tube as social media platforms and how they can be used to promote the firm’s products and services.
More than ever in history, entrepreneurship plays a major role in economic development. Entrepreneurship is looked upon to provide new products and services that spur economic development. Social media plays a positive role in the promotion of a firm’s marketing objectives. Different social media platforms provide varied advantages. The utilization of social media strategies such as Facebook, Twitter, Instagram, and You Tube leads to the growth and development of entrepreneurial firms.
Relationship between Entrepreneurship and Economic Development
A startup founder or business owner working hard to sustain their business plays a positive role in building the sustainability of the local community, region, state, and country. Entrepreneurship contributes to wealth creation and sharing as entrepreneurs contribute financial resources and mobilize public wealth by attracting capital from lenders, investors, and the public. Entrepreneurship also leads to the creation of jobs, which result in increased economic activities that boost the country’s GDP. Entrepreneurship produces surpluses, leading to increased exports. As the business gains access into bigger markets, the economy gains currency inflows that spur increased development.
Entrepreneurship results in community development by building a pool of talented individuals. The creation of educational institutions creates a pool of talented individuals who consequently use their skills to develop the community. Entrepreneurship results in balanced regional development when conducted in less developed areas. It leads to the development of infrastructure such as schools, roads, hospitals, and other services that would not have been available. In this way, the people’s standards of living are boosted.
Relationship between Social Media and Entrepreneurship and Economic Development
All over the world, there has been an exponential growth in social media usage.. Entrepreneurs have embarked on tapping into the opportunities created by the social media. The social media is an equalizer across different gender and age group as it promotes widespread information on available employment opportunities. In this way, potential job applicants from different demographics can gain information on employment opportunities matching their skills and competencies. Before the onset of the social media, individuals would rely on traditional media such as radio, TV, and newspapers for information on available job opportunities. There was information asymmetry that locked out certain individuals from getting access to the information. For instance, TV advertisements would only target particular individuals, which would result in unbalanced economic development in the rural areas. For a small firm, the benefit of attracting employees from different demographics is that it results in increased creativity and innovation within the firm, and consequently, the firm can gain increased sustainability.
Theoretical Background of Social Media and Entrepreneurship
Social media’s impact on entrepreneurship and economic development is supported by the social cognitive theory. According to the theory, continuous interaction between cognitive, behavioral, and environmental factors determines one’s behavior. Consequently, behavioral factors influence one’s actions. The social cognitive theory explains how entrepreneurs recognize opportunities by scanning their environment. They use cognitive skills to identify new opportunities. Entrepreneurs use environmental factors to communicate with customers so as to gain information about the market. As a result, they adopt behavior that maximizes opportunities that are presented by social media platforms. Understanding the theoretical basis of entrepreneurs’ behavior leads to enhanced understanding into the psychology of entrepreneurs in the use of social media. Different social media platforms involving Facebook, Twitter, Instagram, and You Tube provide different marketing benefits.
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