Social media is "make or break" for 3 in 4 lockdown startups

London, UK - 9 December 2021

Social media is becoming increasingly important for startups. QuickBooks sought views from recent and aspiring entrepreneurs and found that almost three quarters (71%) of those who set up during or post lockdown deem social media ‘make or break’ for their business’ success.

Overall, entrepreneurs agree that social media is becoming increasingly important for their business (76%) and necessary for them to be able to successfully grow (81%).

Such is the importance of social media for startups that one in five (21%) are spending more than 7 hours a day on this for their business (compared to an average of 4 hours per day). But despite this, the majority are worried they weren’t using it effectively enough for their business.

Kanita Ramaxhiku, co-founder of Brownie God, has amassed almost half a million followers on TikTok with a series of viral videos showing the processes involved in making its custom-made brownie boxes. Kanita said: “Social media has been absolutely pivotal in our journey as a business. We knew it would play a key role before we started but never dreamed of the amount of success we’ve had on platforms like TikTok and Instagram. Adopting digital technologies across all facets of our business has enabled us to thrive as a startup and form a vital part of our growth strategy.”

Social media used to shape new products and services

QuickBooks’ research¹ shows entrepreneurs are using a variety of social platforms for different purposes. The most common reasons entrepreneurs gave for starting their business’ social media pages were to make market research more accessible (43%) and to build a community invested in the long-term journey of their business (43%). 

A similar proportion (42%) also said that they can see the correlation between social media engagement levels and the growth of their business by utilising different platforms. 

The competitive nature of modern business is also a key factor, with 41% saying that every other business they were aware of had social media accounts, so this was the main reason for getting theirs. 

The ways in which entrepreneurs are using social media are also continuing to evolve, with nearly all (98%) saying they’d used social media trends to shape new products/services. More than four in five (84%) also said they consider social media traction when measuring overall business success, further highlighting its importance among today’s business owners.

Viktoria Ruubel at QuickBooks UK said: “Our findings show just how important social media has become for entrepreneurs hoping to grow and thrive. The nature of social media means it is perfect for today’s digitally driven, “always on” businesses that are constantly looking to break down barriers and reach new audiences. Our separate Intuit Small Business Insights study² shows that revenue from social media makes up almost a third of small business sales and over three quarters agree that small businesses who invest in digital technology are more likely to succeed. 

The importance of adopting digital technology and social media has only increased since the pandemic. As an organisation we are passionate about helping startups to embrace new digital opportunities and work with countless small businesses to do so.”

Enterprise Nation is another organisation helping small businesses via expert advice and support. Its founder, Emma Jones CBE, commented: “It has been incredible to witness the startup boom of the past twenty months and how through utilising digital, new business owners have been able to successfully start and grow their businesses with exceptional results. 

Entrepreneurs are able to connect with their customers by embracing low or no cost technology, with the understanding that if they do, their businesses are more likely to prosper. The research that Intuit QuickBooks has done, allows us to see what fuels and will fuel the entrepreneurs of tomorrow; providing further insight into how best we can support them.” 

Sources

¹Independent research was conducted by Censuswide on behalf of Intuit QuickBooks with a representative sample of 500 UK entrepreneurs and startup SMB owners who use social media for business and 500 UK adults who intend to start their own business in the next 5 years, who use social media.

Research was conducted between 1st - 11th November 2021.

²Small Business Insights: 2022 is the year the pivot becomes permanent.  

QuickBooks commissioned Qualtrics to survey 875 small business owners and decision makers throughout the UK in November 2021. Respondents’ businesses have up to 100 employees and more than £5,000 in annual revenue.

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