SMEs make up a large growth opportunity for the Danish national economy through the significant job impact of SME export. However, SMEs face several barriers to enter new markets and to reach customers further from the local market, as they lack the economies of scale that it takes to break into new markets, and lag behind in digital adoption.
In this study, we find that social media and other digital platforms can help SMEs overcome some of these barriers through new options for firms to advertise in a way that meets efficiently their business needs. This enables SMEs to reach a large share of domestic consumers – as well as an even bigger market opportunity via reach to international consumers.
The novel evidence presented in this study allows a first foray on the use of social media and online tools for exports by national SME. Over time and based on more data, further research can assess the SMEs’ evolving use of social media and its impact.
The study is commissioned by Facebook.
Click the download button below for the study. Moreover, the Danish language version (Danske SMV’ers eksportmuligheder: Sociale mediers rolle) is available for download here.Download