Evaluating The Effectiveness of Social Media Marketing Strategieson The Performance of Small Businesses in Nigeria
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Date
2026
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School of Business, University of the Thai Chamber of Commerce
Abstract
Today, small businesses small businesses are faced with plethora of issues that stall theirperformance and marketing processes because there is absence of adequate resources toinvest in mainstream marketing programs which birth the inability to fully achieve theidentified objectives The study examined the effectiveness of social media marketingstrategies on the performance of small businesses in Nigeria. Also, four researchobjectives and hypotheses were developed. The study utilized a cross-sectional surveydesign. The population of the study was 3,005 selected registered small business owners,and a sample of 353 was arrived at using Taro Yamane’s formula. The questionnaire wasdeveloped in a structured and closed-ended form, administered by Google Forms. Out ofthe 353 questionnaires, 350 were filled, giving a response rate of 99.1%. A simplerandom sampling technique was adopted to ensure that each small business within thepopulation had an equal chance of being selected, thereby minimizing bias and improvingthe representativeness and generalizability of the findings. A Likert scale was adoptedranging from 1 (Strongly Disagree) to 5 (Strongly Agree). To guarantee the quality of thestudy’s instrument, face validity was checked, experts reviewed content accuracy andinter-observer reliability was measured with a Cronbach’s Alpha coefficient value of 0.82for performance, 0.78 for influencer marketing, 0.80 for user generated content and 0.84for paid advertising which revealed the acceptable level of 0.70. The collected data wasanalyzed using descriptive and inferential statistics. Hierarchical regression analysis wasused to test the hypotheses using SPSS version 27. The findings of the study revealedthat all four strategies had a positive and significant effect on the performance of smallbusinesses in Nigeria. Among all the social media marketing strategies, user-generatedcontent (B = 0.4789, p = 0.003) and community engagement (B = 0.4023, p = 0.013) showed the most significant impact on the performance of small businesses in Nigeria,proving that being open and interacting leads to more achievements. Although influencermarketing (B = 0.5125, p = 0.002) and paid advertising (B = 0.3265, p = 0.039) had apositive effect, but to a smaller extent. The result revealed that all the four variablesexhibited positive and statistically significant relationships with business performance:Influencer Marketing (B = 0.5125, p = 0.002), Paid Advertising (B = 0.3265, p = 0.039),Community Engagement (B = 0.4023, p = 0.013), and User-Generated Content (B =0.4789, p = 0.003). regression model was statistically significant indicating that the fourpredictors jointly explained 20% of the variance in small business performance.Regression model was statistically significant indicating that the four predictors jointlyexplained 20% of the variance in small business performance Diagnostic tests confirmedthat the model satisfied assumptions of normality, homoscedasticity, multicollinearity(VIF = 1.83–2.41), and residual independence (Durbin–Watson = 1.89), validating therobustness of the results. Based on the result of the study, it was recommended that smallbusinesses should focus on having customers post content and interact regularly to earntheir trust and succeed in the digital world for a longer time.
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21. Salau, A. A., Ismaila, Y., Adebayo, A. A., & Akinwumi, D. S. (2026). Evaluating The Effectiveness of Social Media Marketing Strategies on The Performance of Small Businesses in Nigeria. Journal of Family Business & Management Studies, 18(1). 87 – 110. School of Business, University of the Thai Chamber of Commerce