Social Media and MSMEs' Performance

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Although small firms have been facing existential challenges because of the COVID-19 pandemic. The effective use of social media platforms has proven to be a suitable and practical solution to support their performance. The adequate support from various key players in the ecosystem will also enhance their performance. Currently, having and maintaining an online operation is not a luxury but a necessity to sustain the continuity of the operations of micro, small, and medium enterprises (MSMEs) during the COVID-19 pandemic. Research suggests that it can even lead to a higher performance after the pandemic. Businesses in Egypt and other developing countries face some obstacles in using social media in the most effective way. Some of them are internal, as they are related to MSMEs and entrepreneurs (e.g., training and infrastructure); others are external, as they stem from the outside environment (e.g., poor internet infrastructure or lack of customers’ trust in conducting business online). This policy perspective will clarify what MSMEs and other players in the ecosystem can do with their current resources to ensure their survival and improve performance.


This is a Policy Brief, published by the Egyptian Cabinet's Information and Decision Support Center (IDSC) in their Public Policy Perspectives Series.