Abstract:
The research on the role of social media on the performance of business particularly micro SMEs was
motivated by the contributions SMEs area making to national economies but as well as the lack of information
on how micro SMEs are utilizing the social media platforms to market their products and services and make
such headlines. Specifically, this study sought to profile usage of social media platforms for marketing,
contribution of social media marketing to performance of micro SMEs, and challenges faced by micro SMEs
in the utilization of social media platforms for marketing purpose. The motivations were drawn from various
literature particularly those focusing on the adoption and use of technology as well as those focusing on
digital marketing trends. Digital marketing being a new phenomenon particularly to micro SMEs made it
relevant to review the said theories. Various attributes were found to have influence on the usage of social
media platforms for marketing as well as measuring their performance data were collected from 90 micro
SMEs in Arusha municipal offering different products and services both within and outside the region. Sample
was drawn randomly and data were collected through questionnaires and analyzed descriptively. Key
findings of the study showed that social media marketing largely is used to counter ever-increasing
competition, helping business build online presence as well as answering customer’s questions. On the other
hand, research data indicate a slight better performance of micro SMEs after commencing using social media
for marketing purposes. Consistency execution of marketing activities was the biggest hurdle as marketing
was done as an operational activity instead of a strategic undertaking. Conclusively, the research concluded
that marketing should be used as a strategic endeavor as it’s about the life of business whether traditional or
contemporary approaches are used
