CorpComms Magazine

While 52 per cent of small to medium-sized enterprises (SMEs) are using social networks such as LinkedIn, Facebook and Twitter, less than half of these are convinced of their value, a new report finds.

Just seven per cent of those using social networks for business purposes described them as 'very useful,' while one in five found them 'not useful,' and six per cent labelled them 'useless', according to a survey of 5,800 business organisations by the not-for-profit consultancy the Forum of Private Business.

A further 18 per cent was more subdued in its praise, finding them 'useful'. 

Other technological staples are also being overlooked by SMEs; one in five has no website and only communicates with customers via traditional means such as face-to-face, telephone and post. 

For those sporting an Internet site, the most common purpose was to make the company's contact details available, Three quarters use it as an outlet for product details and one in five use them directly to sell products and services via systems such as PayPal.

Dealing with spam was identified as the biggest drawback to embracing new technology. Seven out of ten business owners resented the time spent sifting through unwanted emails, 60 per cent were concerned about the possibility of electronic fraud, whilst noted the extra expense of keeping up to date with the latest trends.   

Phil McCabe, a spokesman for Forum, said: 'It's clear that, while a lot of our members are certainly trying out social media for their businesses, many remain unconvinced of its benefits.

'We believe that social media does hold a great deal of potential for many SMEs. Its conversational, real-time nature makes it ideal for entrepreneurs and small, dynamic firms which often have much more relaxed attitudes towards public relations than big corporations. Also, sites like Twitter can provide valuable and cost-free feedback on customer and client satisfaction.

'However, small businesses are a diverse bunch and what works for one company may well not be suitable for another, so it's likely that our figures reflect the business owners whose firms aren't suited to social media because of the sector or market they're in.'

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