Edited by: Tecnológico Superior
Corporativo Edwards Deming
July - December Vol. 6 - 2 - 2022
https://revista-edwardsdeming.com/index.php/es
e-ISSN: 2576-0971
Received: November 18, 2021
Approved: January 11, 2022
Page 64-74
Social networks as a means of communication and
their impact on microenterprises
Las redes sociales como medio de comunicación y su
incidencia en las microempresas
Sofia Georgina Lovato Torres
*
Veronica Coronel Perez
*
Majorie Acosta Velez
*
SUMMARY
The objective of this research is to analyze the incidence
of social networks as a means of communication in
microenterprises in the commercial sector of Guayaquil.
Through a descriptive, bibliographic and analytical-
synthetic qualitative methodology, it was determined that
the use of social networks in microenterprises in the
commercial sector of Guayaquil favors business
development and internal and external communication.
Key words: Qualitative, descriptive, business
RESUMEN
La presente investigación tiene como objetivo analizar la
incidencia de las redes sociales como medio de
comunicación en las microempresas del sector comercial
de Guayaquil. A través de una metodología cualitativa del
tipo descriptivo, bibliográfico y analítico-sintético se
determinó que el uso de las redes sociales en las
microempresas del sector comercial de Guayaquil favorece
el desarrollo empresarial y la comunicación interna y
externa.
Palabras clave: Cualitativa, descriptiva, empresa
* Ph.D. Universidad de Guayaquil, sofia.lovatot@ug.edu.ed, Guayaquil, Ecuador,
ORCID: 0000-0001-5831-8554
* Master, Universidad de Guayaquil, veronicacorenelp@ug.edu.ed, Guayaquil,
Ecuador, ORCID: 0000-0001-9771-367X
* Master, Universidad de Guayaquil, acostamarjorie@gmail.com, Guayaquil,
Ecuado, https://orcid.org/0000-0003-1479-2080
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INTRODUCTION
Social networks are dynamic sites belonging to the Internet that allow users to generate,
share, comment, edit content, as well as create networks of contacts with known and
unknown users. According to Landeta, Salamea and Montecé (2019) the origin of social
networks dates back to 1995 when Randdy Conrads created a website called
www.classmates.com, which sought to connect alumni of schools, colleges and
universities, giving value to the number of connections and friends in common that users
had, it became attractive to connect in this type of websites.
There are currently around 482 million social network users worldwide. According to
Tello and Pineda (2017) the countries that have achieved the highest growth in the area
of e-commerce are China, Japan, Singapore, Taiwan, Hong Kong, South Korea, Vietnam,
India, among others. In Latin America, the Internet penetration rate is 60% in the
countries of the region. Brazil and Mexico are among the countries with the highest
internet penetration in the region with 70.2% and 66.5% respectively (Garzón, 2019).
In Ecuador, Internet penetration is 57.3%, there are 10.17 million Internet users who
connect from any device, the average annual growth of users is 1.5%, that is, 147
thousand, and 98.0% of users access their social networks through mobile devices.
Ecuador is governed according to the Community Statistical Program of the Andean
Community of Nations (CAN) for the classification of companies according to their size,
for the case of microenterprises according to the CAN (2017) in Resolution 1260 are
considered as such those companies that meet three requirements: a) have employed
personnel from 1 to 9 collaborators; b) the gross annual sales value must not exceed
USD 100,000; and, c) the amount of its assets must be up to USD 100,000.
This research aims to conduct a descriptive research and literature review on the impact
of social networks as a means of communication in microenterprises in the commercial
sector of the city of Guayaquil, since technological progress is inescapable and connects
everyone, microenterprises are not exempt from adapting to the use of ICT and social
networks as channels of internet and external communication.
MATERIALS AND METHODS
A qualitative, descriptive, analytical-synthetic and bibliographic methodology was applied,
where the sources of information were books, scientific journals, databases and other
research works.
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According to Villón (2021) who cites the Superintendencia de Compañías, Guayaquil or
the Greater Guayaquil area as it refers to the cantons of Guayaquil, Durán, Daule and
Samborondón, concentrates 37% of the companies at the national level of which 91.9%
are microenterprises, and of these 51.88% are engaged in commercial activity.
(Quisnancela & Jácome, 2021)
By May 2021 according to data from the Chamber of Commerce of Guayaquil (2021)
the port city recorded total local sales of US$ 22,188 million compared to US$ 14,173
million in 2020. The commerce sector was one of the hardest hit by the pandemic,
registering losses of US$ 10,687 million between March 2020 and May 2021.
The commerce sector in Guayaquil is one of the sectors that generates the most suitable
jobs, since 18% of suitable jobs are in this sector.
In Ecuador, due to the penetration of the Internet and the use of technology in society,
the number of users in the country has increased. Despite this, due to digital illiteracy
or lack of knowledge about the available resources, not all businesses know how to take
advantage of these tools.
Information and Communication Technologies (ICT) allow society to communicate and
innovate in social, labor, personal and commercial matters, to such an extent that it is
now difficult to conceive the idea of commerce without the use of these tools.
Traditional commerce has now been relegated mostly to the background due to social
needs and the use of digital media for advertising and marketing has become a priority
for business survival.
On the other hand, according to Castaño and Jurado (2016) from the growth of e-
commerce and new technologies in the world, the means by which traditional marketing
techniques and methodologies are applied have migrated to the digital field.
According to Selman (2017) digital marketing consists of marketing strategies applied to
a virtual environment in which users can interact with the company and consult
recommendations with other users. This generates user traffic that ends up becoming a
communication network between customers and companies where information is very
valuable.
For Salazar, Paucar and Borja (2017) is the application of advertising and commercial
strategies through digital media, on the one hand it is nothing more than the translation
of traditional techniques applied in the virtual environment. However, in digital
marketing, the presence of tools becomes extensive due to the wide volatility and
innovation of techniques, tools, media, channels and methodologies.
Zamora (2019) quotes Boyd and Ellison (2007) who mention that social networks are
technological resources of great importance, both for consumers and individuals in
general and for organizations, because they establish a communication bridge between
them and generate new networks between companies and between users. On the other
hand, they are tools of persuasion for users so that companies can market their products
or services.
Therefore, social networks allow structuring communication networks, however, they
are also used to market and also to create and develop a brand image and trust within
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a network, which requires strategic and systematic planning in order to obtain expected
results.
According to Harris and Rae (2009) the application of social networks in companies is
growing due to the informative and commercial potential they have because of their
great impact and reach; users are increasingly exposed to large amounts of information
on a daily basis, making them a great marketing channel. For SMEs, this type of channel
becomes a very important tool due to its low budget with a good impact for the
development of the brand and products.
In marketing and communication, it is beneficial for SMEs because it allows them to
generate market positioning strategies. In addition to having a direct and indirect channel
of communication with customers, which facilitates the process of research,
development and innovation, it is also a key factor in marketing strategies because they
are feedback channels for companies when generating new strategies, campaigns,
promotions and other decisions inherent to marketing, because you can get an overview
of the opinions, tastes, criticisms of customers and the perception they have about the
brand and products.
It is also applied for market research and feedback or level of satifaction of users or
customers to products offered, as well as perception and analysis of product
improvements, it is not only a communication channel, it is a comprehensive tool that
facilitates the processes of improvement and positioning, as it allows interaction between
users, potential and target consumers, the company and suppliers. (Zamora, 2019)
Therefore, nowadays the presence of a digital spokesperson has become one of the
most needed careers in the field of marketing due to the need of companies to have
personnel specially assigned to the interaction and generation of content for social
networks, who are able to guide users and filter complaints, opinions and suggestions.
(Romero, 2016)
According to the Adevinta Spain study (2021) currently the use of social networks is not
only based on entertainment content, it is also an informative medium that spreads
massively and virally compared to other existing media. Its application in digital marketing
and commerce at present is not only related to publish infographics, advertising images,
it is more than that, now there are snacks contents that are short content with great
visual impact such as instagram reels, tik toks or YouTube Shorts that can be from image
collage to videos.
Affiliate Shops on Instagram is also in the pipeline, which will allow users to find products
to recommend from various brands and earn commissions for this activity. The use of
live videos for the launch of new products, brands or even for last-minute promotions
or sweepstakes has become a trend in digital marketing through social networks.
In the future, the development of the Facebook Metaverse will be a new experience for
commerce and digital interaction between users and companies, due to augmented
virtual reality.
For Jones, Borgman and Ulusoy (2015) the use of social networks and websites in the
development of microenterprises is favorable, because it allows them to be better
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known locally, in addition to facilitating and increasing the network of contact with
suppliers and users, as well as improving sales, and forces microentrepreneurs to
improve the content they promote, which also intervenes in the improvement of the
products and services offered.
In the study conducted by McCann and Barlow (2015) determined that microenterprises
that do not apply social networks or other technological tools lost value and sales over
time, on the contrary, those SMEs that use social networks had better return on
investment.
According to Hassan, Ahmad and Shiratuddin (2015) SMEs are constantly undergoing
innovation and improving competitiveness due to the Internet and globalization, which
is why the use of social networks is an effective and accurate tool for this business sector
that does not have large budgets to afford a group of marketing professionals or
technology for the development of large advertising campaigns. However, social
networks are tools of easy access and application.
Balan and Rege (2017) indicate that more and more microenterprises are implementing
social networks for communication between employees, suppliers and customers, being
a global communication network it is easy for SMEs to analyze and know the preferences,
tastes, suggestions of consumers which facilitates constant feedback to maintain
innovation and continuous improvement.
Poon and Swatman (1997) indicate that in Australia they identified an increase in
revenues, an improvement in information management and facilitated a communication
network between internal company applications and inter-organizational functions,
improving company performance.
According to López, Beltrán, Morales and Cavero (2018) for 2012 the International
Center for Higher Communication Studies of Latin America conducted the Digital Media
Map of Ecuador, which mentions that the most used social networks are Facebook,
followed by RSS, JustinTV, Ustream, Google, YouTube, Twitter. According to data from
the National Institute of Statistics and Census (INEC) in 2015 Facebook is the most used
application by citizens, followed by WhatsApp and Twitter.
According to the Branch website (2021) Ecuador has a population of 17.7 million
inhabitants, of which 64.3% reside in urban areas of the country. 77.8% of the population
has connected mobile devices, which represents 13.82 million active devices. In the
country, there are 10.17 million internet users and 14 million profiles in social networks,
representing 78.8% of the population. Compared to 2020, which was a year of digital
immersion caused by the Covid-19 pandemic, the digital population increased by 1.5%,
that is, about 147,000 inhabitants joined the Internet as users, so profiles in social
networks increased by 2 million or 16.7%. The most used pages or social networks are
Facebook, Instagram, Tik Tok and Twitter, the average use of networks such as
Facebook is 18.50 minutes a day, being the network that most captures the time of
Ecuadorians.
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Figure 1. Audience in social networks of Ecuador 2021
Taken from (Branch, 2021)
According to Del Alcázar's research (2022) 35% of Internet users are in the province of
Guayas, followed by 20% in Quito, 8% in Azuay and 37% in the rest of the country. The
average use of applications and websites most used is Facebook with 18.17 minutes per
day, YouTube with 19.43 minutes per day, Google with 17.26 minutes per day and
Mercado Libre with 5.51 minutes per day. Within the most used social networks are
Facebook with 13.7 million users, Instagram with 5.8 million, Tik Tok with 3.76 million,
WhatsApp with 3.3 million, followed by LinkedIn with 3.2 million, Twitter with 1.5
million, Pinterest with 1.3 million and Snapchat with 0.26 million users. Of these, 20.41%
of Facebook and Instagram users are located in the city of Guayaquil and 16.95% in the
city of Quito, being the cities with the highest concentration of users nationwide.
By the end of 2021, USD 104 million were invested in social networks, which
represented a 17.1% growth compared to the previous year, while the investment in
first searches in web browsers was USD 62 million, i.e. 22.1% more than in 2020.
In Ecuador, the average cost per minimum click in June 2021 was USD 0.019, 74% lower
than the average in the United States and 121% higher than in Venezuela.
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Figure 2. Variation in the average cost per click value January-June 2021 on Facebook.
Taken from (Del Alcázar, 2022)
At the commercial level 49% of users prefer to buy through social networks such as
WhatsApp, 49% through shopping or delivery applications such as Shein, Amazon, Uber
Eats, Pedidos Ya, among others; and on websites such as Mercado Libre. Digital sales in
Ecuador in 2019 were USD 1.6 billion, by 2020 they were USD 2.2 billion, so there was
an increase of 54% of online purchases, of which 13% of these were first online purchases
by the user. With respect to 2021, there was a 23.9% increase in e-commerce sales
compared to 2020. The average expenditure per user in e-commerce is USD 340.01 per
year. (Del Alcázar, 2022)
According to Michelena, Muñoz, Puente and Ribadeneira (2021) in the study entitled
Digital Agenda Ecuador 2021-2022 mention that according to INEC data 91.55% of
companies in Ecuador are classified as microenterprises, so the adoption of ICTs for
production processes is essential as it promotes the increase of the company and
improves organizational methodology, however, despite the fact that they use basic
ICTs, investment in this area does not exceed 50% of the total number of companies
surveyed. They also mention the main benefits of ICTs in microenterprises such as
customer management, order control and follow-up, sales support service, research and
development, ICT investment for these purposes varies between 22% and 36%, which
shows the lack of use of these tools in microenterprises, Despite the high penetration
of ICTs in MSMEs, ICTs are not used in the most optimal way, because only 17% of the
companies surveyed in Ecuador carried out transactions over the Internet, of which 15%
made purchases and 8% sold products or services.
At the level of microenterprises in Guayaquil, the lack of technological tools interferes
with the economic and financial development of companies in this sector, digital
communication channels and research and development technology, this due not only
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to the lack of budgetary planning, also to the lack of knowledge and absence of strategic
and organizational models. (Silva, Flores, Montalván, & Alejo, 2018).
RESULTS
The main results of the research are based on the fact that in Ecuador the internet
penetration is 79% according to INEC. (2022)
In the city of Guayaquil according to data from INEC (2021) there are 25.8 thousand
companies of which 78.46% are microenterprises. According to Michelena, Muñoz,
Puente and Ribadeneira's research, microenterprises make use of microenterprises in
Guayaquil. (2021) microenterprises make use of basic ICTs, however only 22% or 36%
invest in the digitalization or automation of commercial activities, marketing or internal
communication. On the other hand, 15% of microenterprises purchased through the
Internet and only 8% made sales. As mentioned by Silva et al. (2018) the main problem
of MSMEs in the city is related to the lack of ICT implementation, digital illiteracy and
the lack of optimal use of these digital tools.
On the other hand, although the growth of digital platforms for marketing increased in
SMEs, it was due to the confinement by the SARS-Covid-19 pandemic that
microenterprises were forced to adopt new technological strategies to survive the
pandemic, since, due to the confinement, traditional or face-to-face sales remained in
the background. Thus, microenterprises resorted to delivery platforms such as Glovo,
Pedidos Ya, Uber eats, which increased their downloads by 200%; and social media
profiles, such as social networks. (Ekos, 2020)and profiles on social networks such as
WhatsApp increased by 1.5% compared to 2019. (Branch, 2021)
DISCUSSION
Therefore, the use of social networks in the performance and development of
microenterprises in the city of Guayaquil is as important as other factors for the
development of these, because they not only provide benefits such as improving
communication, serve as a source of continuous feedback, market positioning and
marketing tool, but also as a more complete tool that will allow MSMEs to survive in the
market, position themselves, grow and innovate, because it is necessary to always be
aware of trends, changes in payment preferences, communication, consumption, among
others.
But despite this, it should be noted the little use as mentioned by Silva et al. (2018), since
not knowing the use of social networks, or the benefits it brings does not allow the full
development of MSMEs, because the use of ICTs is limited to their most basic functions
as communication tools and not as comprehensive technological tools with which you
can not only perform deep analysis for decision making, also plan budgets, marketing
strategies, and digital marketing, create customized reports suitable for the needs of
business owners, among others.
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