MoneySuperMarket: 2 in 5 SMEs Use Social Media for Advice

MoneySuperMarket has conducted research ahead of Social Media Day to shine a spotlight on how social media is used by SMEs. 

Some SME owners use data to influence decisions, a statement that anyone who has sat in the chair of the controller is familiar with. 

While data can be the most influential, research from insurance expert MoneySupermarket actually highlights how businesses are turning to social media for advice on how to run their business. 

The research shows that, out of the surveyed 390 decision makers, 41% used social media to get advice on how to run the business. 

The survey asked UK business decision-makers what they used social media for, and how that affected business. 

What can social media be used for? 

The survey collated data on if decision makers use it for a variety of business and financial advice. 

Out of six categories covering financial administration, the lowest number reported was 14% of the respondents, who reported using social media for business banking or cashflow. 

The use of social media for advice about self-assessment or tax returns was the highest, with 31% of decision makers admitting to turning to social platforms for advice. 

Alicia Hempsted, Business Insurance Expert at MoneySuperMarket, says: “Social media can be a powerful tool for useful information for business owners, however, it’s essential that decision-makers fact-check the advice with verified sources and professional government guidelines to ensure that it is correct.”

Is age an important factor?

The research also highlights how business age has an impact on the use of social media.

Out of those surveyed with a company less than five years old, one in 20 decision owners state they use social media “very often”. 

This is a stark difference to companies that have been running for 35 years or more, which the report notes is only 2%. 

While age plays a significant role in trust toward social media, this is potentially a factor for consideration as 169,200 business owners follow advice or information from social media without first verifying it with other sources.

Conversely, MoneySuperMarket’s survey revealed that 44% of decision-makers do check either an official source or an accountant after originally asking social media. 

The survey further highlights that 24% of respondents use social media to research business or tax topics specifically relating to which expenses they can claim, making it the second highest category of respondents to use social media for advice. 

Company makeup also makes a difference

Size of the business is also a factor for consideration, with 6% of microbusinesses owners – who have less than 10 employees – utilising social media for advice or support. 

The statistics contrast sharply with medium sized businesses, made up of 50 to 249 employees, suggesting size of the business is a large contributing factor. 

Medium-sized businesses demonstrate the largest demographic that turns to social media for business advice. The report notes that 25% say they use it quite often to aid the running of the business.