Impact of social media on the growth of SMES in Tanzania: the case of selected SMES in Dar es salaam

Social media is one of the effective means of expanding Small and Medium Enterprises (SMEs’) businesses and of acquiring more markets, if their full potential is exploited. The study was conducted with an objective of determining the impacts of social media on the growth of SMEs in Tanzania. Specifically, the study analyzed the impacts on customers’ acquisition, the extent to which social media is used by SMEs in Tanzania, motives for using these social media, and constraints facing the SMEs in using them. The study used a cross-sectional survey of SMEs in Dar es Salaam city. Due to its ability in attracting a large group of customers into one and its cost effective nature, social media has been preferred by most SMEs in Tanzania. Social media has been found to contribute significantly to the growth of these SMEs. It has led to an increase in number of customers, sales, and eventually growth of these SMEs. The most preferred and used social media in Tanzania are Instagram and WhatsApp. The study found various constraints on the effective use of social media by SMEs in Tanzania. These constraints include; lack of dedicated staff to devote time for social media, limited IT staff and social media expertise, concerns of information security and privacy, dealing with fake company accounts, and negative comments from customers. The study recommends on the development of capacity of SMEs in using social media, as well as the enforcement of the Cyber Crime Act, 2015.