Evaluating the Impact of Social Media Marketing on the Growth and Performance of Small and Medium-Sized Enterprises (SMEs)

Abstract

This study investigates how social media marketing influences the growth and performance of small and medium-sized enterprises (SMEs) in Somalia, with a focus on Facebook, Instagram, and TikTok. Using a cross-sectional survey design, data were collected from 127 SMEs across five major cities: Mogadishu, Hargeisa, Kismayo, Baidoa, and Borama. Business growth was assessed through indicators such as increased sales revenue, customer base expansion, and market reach, while improvements in brand awareness and customer engagement measured performance. The findings show that 67% of respondents reported enhanced customer engagement and brand awareness, and 54% indicated higher sales revenue linked to social media campaigns. Regression results revealed that Facebook had the strongest impact on both growth (β = 0.625, R² = 0.391, p < 0.001) and performance (β = 0.581, R² = 0.337, p < 0.001). Instagram contributed moderately to growth (β = 0.547, R² = 0.299, p < 0.001) and performance (β = 0.509, R² = 0.259, p < 0.001), while TikTok showed a weaker but significant effect on growth (β = 0.219, R² = 0.048, p = 0.012) and limited effect on performance (β = 0.215, R² = 0.046, p = 0.015). Combined regression models explained over 92% of the variance in SME growth and 85% in performance, highlighting the synergistic benefits of multi-platform strategies. These findings underscore the strategic importance of social media marketing for Somali SMEs and point to the need for targeted digital training and policy support to maximize its potential.