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
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
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
1.3 OBJECTIVES OF THE STUDY
The following are the objectives of this study:
- To examine social media entrepreneurship as a tool for national development.
- To examine the advantage so social media entrepreneurship.
- To identify the factors militating against social media entrepreneurship.
1.4 RESEARCH QUESTIONS
- Can social media entrepreneurship be used as a tool for national development?
- What is the advantage so social media entrepreneurship?
- What are the factors militating against social media entrepreneurship?
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:
- The results of this study will throw light on approaches to
social media entrepreneurship and how it can be used as a tool for
- 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
- 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).
- 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.
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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.