Nano, micro, small, and medium enterprises (NMSMEs) are still heavily reliant on the “brick-and-mortar” system or traditional street-side business methodology, which is no longer as efficient as it once was. In contrast to the foregoing, this study examined the effect of new media on nano and micro enterprises (MSSBs) in Nigeria. Hinged on the technology acceptance model (TAM) and theory of digital divide, the research employed a survey method to generate responses from micro business owners within 36 business categories in Bauchi Metropolis by deploying 100 questionnaires to a random sample size. Chi-Square test calculator and sample median test were used to examine the various hypotheses at a 5% level of significance. The analysis revealed that there was no significant positive relationship between new media products' usage and increased business performance in Bauchi. This is because the majority of NME owners were still unaware of what new media products could offer them. As such, NME owners need to be trained to adopt the new media tools in order to boost NMEs in this region.
TopIntroduction
The need for survival, expansion, customer satisfaction, generation of extraordinary value for customers and other stakeholders, the establishment of new product lines and service offerings, profitability, lower operating costs, and development into a great enterprise are all common business goals for Micro, Small and Medium Scale Enterprises (MSMEs). Although, whether big or small, enterprises continue to depend on government to create an enabling environment where risks are minimised and well managed. In addition, the proper management of customs, laws, regulations, policies, trade agreements and public infrastructure will facilitate ease of movement of a product or service along its value chain (Onyinyechukwu, 2020). With these expectations, the advancements in Information Communication and Technology (ICT), the use of new media tools such as the internet, social media, and digital devices such as mobile smart phones have changed the way and manner in which businesses are now conducted.
According to Appel, Grewal, Hadi et al. (2020), in recent years, the use of new media platforms such as social media by company owners has become an essential platform for promoting their products and services to customers. The media as a tool has long been a visually appealing marketing tactic utilised by huge corporations to engage with prospective consumers. Consequently, the combinations of the Internet and other digital media have caused disruptive innovation in the business space. This development, which is currently ongoing, has resulted in continuity in transactions happening within the online world as it is not limited by the time of the day where traditional businesses would operate between a time-frame daily. When compared to three to four decades ago, there has been a significant shift in how business is conducted nowadays thanks to globalisation. As Quade & Leimstoll (2015) point out, cell phones have ubiquitous uses in many regions of the world as they are utilised for both personal and professional purposes.
It should be noted that, while social media was designed primarily as a means of socialising, some business owners have recognised the commercial prospects that they provide and have opted to use them to promote their enterprises. According to Gielens & Steenkamp (2019) the rise of E-commerce retailers, has taken advantage of new media tools such as social networking sites (Facebook and Instagram), Microblogs (Twitter) and E-commerce sites (Konga and Jumia) as a marketing opportunity. This has helped to cut out the conventional intermediary cost of advertising which middlemen usually profited from as they had previously made connecting businesses directly to customers difficult. In 2019, Chivandi, Samuel, & Muchie posited that the use of these new media products has significantly changed how consumers and marketers communicate and even engage in business transactions.
The challenges surrounding the “brick-and-mortar” system or traditional street-side business that offers products and services to its customers face-to-face either in an office or store that the business owns, or rents include the high cost of maintenance, long travel and delivery times which requires their physical presence to buy and sell. This has made them unable to deliver their products and services except they are present. Also, this long process of activity ends as within the locality of the business owner as opposed to the new media environment that allows businesses to continue globally.