📈 economics

Social Media Marketing and Sustainable Business Performance of Small and Medium Enterprises in Bangladesh

This study of 292 Bangladeshi SMEs reveals that perceived usefulness and ease of use drive social media marketing adoption, which in turn positively influences sustainable business growth by enhancing market penetration, customer engagement, and competitiveness.

Original authors: Md. Sohel Rana, Md Shafiullah

Published 2026-07-02

📖 5 min read🧠 Deep dive

CC BY 4.0

Original authors: Md. Sohel Rana, Md Shafiullah

Original paper licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). ✨ This is an AI-generated explanation of the paper below. It is not written or endorsed by the authors. For technical accuracy, refer to the original paper. Read full disclaimer

Imagine the business world of Bangladesh as a bustling, crowded marketplace. In this market, the Small and Medium Enterprises (SMEs) are the local shopkeepers. They are the engine of the country's economy, creating jobs and keeping communities fed, but they often struggle. They have limited money, they can't afford expensive advertising billboards, and they sometimes feel overwhelmed by the big, fancy corporate chains nearby.

This research paper is like a guidebook for these shopkeepers, asking a simple question: "Can using social media (like Facebook or Instagram) help these small shops survive and grow in a healthy, long-term way?"

Here is the breakdown of what the study found, using everyday analogies:

1. The Two Keys to Opening the Door

The researchers found that for a shopkeeper to start using social media, two specific feelings are crucial. Think of these as the two keys needed to unlock the door to digital success:

Key #1: "Is this tool actually useful?" (Perceived Usefulness)
Imagine a shopkeeper looking at a new, high-tech cash register. If they think, "This will help me sell more cookies faster," they will want to use it. The study found that if Bangladeshi business owners believe social media will actually boost their performance, they are more likely to try it. However, just thinking it's useful isn't enough on its own; it's a small push, not a giant shove.
Key #2: "Is this tool easy to use?" (Perceived Ease of Use)
Now, imagine that same cash register is so complicated that the shopkeeper needs a PhD to figure out how to turn it on. They probably won't use it, even if it's useful. The study discovered that this is the most important factor. If the social media platform feels simple, friendly, and not scary to navigate, the shopkeepers are much more likely to jump in. In Bangladesh, where digital skills vary, if the tool feels "easy," adoption happens.

2. The Result: A Healthier, Stronger Business

Once the shopkeepers start using these social media tools (the "Use of SMM"), the study found a direct link to Sustainable Growth.

Think of sustainable growth not as a sprint to get rich quick, but as building a sturdy house that can withstand storms. The research shows that using social media helps these businesses:

Widen their net: They can catch customers far beyond their immediate neighborhood.
Talk to customers: Instead of shouting from a distance, they can have two-way conversations with buyers.
Stand out: They can compete with the big corporate chains without needing a massive budget.

The data suggests that the more these small businesses use social media, the stronger and more resilient they become over time.

3. The "Double Benefit"

Here is a fascinating twist the study found. It's not just that "using social media = growth." It's that the belief that the tools are useful and easy also helps the business grow, even before they fully master the tools.

Think of it like a coach telling a team, "This new training method is easy and will make you faster." Even if the team is just starting to practice, that positive mindset and the decision to try the method directly improve their performance. The study found that the attitude of the business owners (thinking it's useful and easy) directly contributes to their long-term success, alongside the actual act of posting and selling online.

4. What Needs to Happen Next? (The Recommendations)

The authors suggest a few practical steps to help these shopkeepers:

For the Business Owners: Don't just pick the fanciest tool; pick the one that feels easiest to learn. Invest in training so your staff feels confident, not intimidated.
For the Government: Think of the government as the road-builder. If the roads (internet infrastructure) are broken or the tolls (cost of data) are too high, the shopkeepers can't travel. The study suggests the government should build better digital roads, teach people how to drive (digital literacy), and make the "toll" cheaper so everyone can get on the highway.

Summary

In short, this paper argues that for small businesses in Bangladesh to thrive in the long run, they need to embrace social media. But to do that, they need to feel that the technology is easy to handle and worth the effort. When they do, it acts like a powerful engine, helping them grow steadily, compete fairly, and build a business that lasts.

What the study did NOT say:

It did not claim that social media guarantees immediate wealth.
It did not test specific types of products (like selling clothes vs. selling food).
It did not look at how artificial intelligence or advanced automation will change things in the future (it only looked at current social media use).
It did not claim that only these two factors (usefulness and ease) matter; it just focused on them for this specific study.

Technical Summary: Social Media Marketing and Sustainable Business Performance of SMEs in Bangladesh

Problem Statement
Small and Medium Enterprises (SMEs) are critical drivers of economic growth, employment, and poverty alleviation in emerging economies like Bangladesh. However, these enterprises frequently face constraints including limited financial resources, a lack of technological capabilities, intense competition, and restricted access to traditional marketing channels. While social media marketing (SMM) offers a cost-effective avenue for market expansion and customer engagement, its adoption in Bangladesh is hindered by digital literacy gaps, insufficient infrastructure, and a lack of strategic planning. Despite the recognized potential of SMM, empirical evidence regarding its specific impact on the sustainable growth of Bangladeshi SMEs remains scarce. This study addresses this gap by examining how the adoption of SMM influences the sustainable business performance of SMEs in Bangladesh.

Methodology
The research employed a quantitative, cross-sectional design to investigate the relationships between technology acceptance factors, SMM usage, and sustainable growth.

Data Collection: A survey was conducted between February and April 2026 across three major Bangladeshi cities: Dhaka, Chittagong, and Rajshahi. The target population consisted of employees from SMEs registered under the Micro, Small & Medium Enterprise Development Act 2006.
Sampling: From an initial pool of 600 employees across 24 selected SMEs, 318 responses were received. After filtering for completeness, 292 valid responses were analyzed.
Instrument: The study utilized a 17-item questionnaire based on the Technology Acceptance Model (TAM), adapted from existing literature. Variables included Perceived Usefulness (PU), Perceived Ease of Use (PEU), Use of SMM (US), and SME Sustainable Growth (SSG). Responses were measured on a 5-point Likert scale.
Analysis: Data were processed using IBM SPSS. The analysis included reliability testing (Cronbach's alpha), descriptive statistics, Pearson correlation analysis, and multiple regression analysis to test the proposed hypotheses and model fit.

Key Contributions and Framework
The study extends the Technology Acceptance Model (TAM) by integrating "Sustainable Business Growth" as a critical outcome variable within the context of developing economies. It proposes a conceptual framework where:

Perceived Usefulness (PU) and Perceived Ease of Use (PEU) act as antecedents influencing the Use of SMM (US).
Use of SMM (US) acts as a mediator and a direct driver of SME Sustainable Growth (SSG).
The study also investigates the direct effects of PU and PEU on SSG, independent of SMM usage.

Results
The statistical analysis yielded the following key findings:

Reliability: All constructs demonstrated acceptable internal consistency, with Cronbach's alpha values ranging from 0.608 (PU) to 0.792 (SSG).
Descriptive Statistics: Respondents indicated a "Relatively high" level of sustainable growth (Mean = 3.543) and "Moderately high" usage of SMM (Mean = 3.229). Perceptions of usefulness and ease of use were moderate.
Correlation: Strong positive correlations were observed between all variables. Notably, PEU and US showed the highest correlation ( $r = 0.657$ ), followed by US and SSG ( $r = 0.614$ ).
Regression Analysis:
- PEU $\rightarrow$ US: Perceived Ease of Use had the strongest positive influence on the adoption of SMM ( $\beta = 0.517, p < 0.001$ ).
- PU $\rightarrow$ US: Perceived Usefulness also positively influenced SMM adoption, though with a smaller effect size ( $\beta = 0.123, p = 0.005$ ).
- US $\rightarrow$ SSG: The use of SMM significantly and positively influenced sustainable growth ( $\beta = 0.466, p < 0.001$ ).
- Direct Effects: Both PU ( $\beta = 0.251$ ) and PEU ( $\beta = 0.215$ ) had significant direct effects on SSG, even when mediated by SMM usage.
Model Fit: The regression model explained 46.2% of the variance in Sustainable Growth ( $R^2 = 0.462$ ). The F-statistic (82.53) confirmed the model's overall significance.

Significance and Implications
The paper posits that the study holds theoretical, practical, and policy-level significance:

Theoretical: It enriches the literature on digital marketing and technology adoption by validating the TAM framework in the context of Bangladeshi SMEs and linking it explicitly to sustainable business outcomes.
Practical: The findings suggest that for SME owners, prioritizing the "ease of use" of digital tools is paramount for adoption. The study recommends that SMEs invest in training to build digital skills and select user-friendly platforms to enhance competitiveness, market penetration, and customer engagement.
Policy: The authors argue that government intervention is necessary to foster an enabling environment. This includes improving digital literacy initiatives, developing technological infrastructure, and providing low-cost internet access. Such measures are viewed as essential for rapidly fostering SMM adoption and contributing to the long-term socio-economic development of Bangladesh.

Limitations
The authors acknowledge several limitations: the cross-sectional nature of the study prevents the assessment of causal relationships over time; the sample was limited to three major cities, potentially reducing generalizability to rural areas; and the reliance on self-reported data may introduce common method bias. Additionally, the model focused solely on PU and PEU, excluding other potential factors like leadership support or competitive pressure.