Social Media Has a Positive and Significant Influence on Business Development

Oct 13, 2025 by magicalceylontours.com 133 views

The Effect of Social Media and Entrepreneurial Competencies on the Development of MSME Business Clothing at the Medan Market Center

Introduction

In today's digital era, the existence of social media has become a crucial factor in business development, especially for micro, small and medium enterprises (MSMEs). The rapid growth of social media platforms has provided businesses with a wide range of opportunities to promote their products and services, interact with customers, and build brand awareness. However, the success of MSMEs in leveraging social media depends on various factors, including their entrepreneurial competencies. This study aims to analyze the influence of social media and entrepreneurial competencies on business development, with a focus on MSMEs of clothing that operate at the Medan Market Center.

The Importance of Social Media in Business Development

Social media has become an essential tool for businesses to reach their target audience, increase brand awareness, and drive sales. With the rise of social media platforms such as Facebook, Instagram, and Twitter, businesses can now interact with customers, share their products and services, and build relationships with their target audience. Social media has also enabled businesses to collect data and insights about their customers, which can be used to improve their marketing strategies and product offerings.

Entrepreneurial Competencies: A Key Factor in Business Development

Entrepreneurial competencies refer to the skills, knowledge, and attitudes that entrepreneurs need to possess in order to succeed in business. These competencies include leadership skills, marketing skills, financial management skills, and problem-solving skills. Entrepreneurs who possess these competencies are better equipped to manage their businesses, adapt to market changes, and make informed decisions.

Research Methodology

This study used a quantitative research approach, specifically multiple linear regression analysis, to measure the influence of social media and entrepreneurial competencies on business development. The population taken in this study was 1,184 respondents, and the sampling technique used was purposive sampling, so as to obtain a sample of 100 respondents. The data obtained was tested through the validity and reliability test to ensure the accuracy of the information obtained.

Research Results

The results of the data analysis show that:

Social Media Has a Positive and Significant Influence on Business Development: The study found that social media has a positive and significant influence on business development. This shows that the use of effective social media can increase the visibility and attractiveness of MSME products in the market, so that it can attract more customers.
Entrepreneurial Competence Also Shows Positive and Significant Influence on Business Development: Entrepreneurs who have adequate skills and knowledge tend to be able to manage their business better, adapt marketing strategies, and understand market needs.

Analysis and Discussion

From the results of the study, it can be concluded that social media has a stronger influence compared to entrepreneurial competencies on the development of the MSME business. This may be caused by the characteristics of today's consumers who are more active in finding products through social media platforms. The use of social media allows entrepreneurs to promote products widely and interactively, as well as building relationships that are closer to customers.

On the other hand, although entrepreneurial competence is also important, without the support of social media, the existing market potential may not be fully utilized. Therefore, MSME entrepreneurs at the Medan Market center need to prioritize the development of their social media skills as a strategy to increase the competitiveness of their business.

Conclusion

This research confirms the importance of social media and entrepreneurial competence in supporting the development of MSME businesses. For business people, understanding and utilizing social media optimally can be the key to achieving success. In addition, increasing entrepreneurial competence must also be a focus so that MSMEs can adapt quickly to market changes and consumer demands. By combining these two factors, MSMEs at the Medan Market center can be better prepared to face challenges and achieve sustainable success.

Recommendations

Based on the findings of this study, the following recommendations are made:

MSMEs at the Medan Market Center Should Prioritize the Development of Their Social Media Skills: MSMEs at the Medan Market center should prioritize the development of their social media skills as a strategy to increase the competitiveness of their business.
Entrepreneurs Should Focus on Increasing Their Entrepreneurial Competence: Entrepreneurs should focus on increasing their entrepreneurial competence, including leadership skills, marketing skills, financial management skills, and problem-solving skills.
Businesses Should Use Social Media Effectively: Businesses should use social media effectively to promote their products and services, interact with customers, and build brand awareness.

Limitations of the Study

This study has several limitations, including:

The Study Was Conducted in a Specific Context: The study was conducted in a specific context, namely the Medan Market center, which may limit the generalizability of the findings.
The Study Used a Quantitative Research Approach: The study used a quantitative research approach, which may not capture the nuances and complexities of the phenomenon being studied.
The Study Did Not Examine the Impact of Other Factors: The study did not examine the impact of other factors, such as market conditions, competition, and government policies, on the development of MSME businesses.

Future Research Directions

Future research should aim to:

Examine the Impact of Other Factors: Examine the impact of other factors, such as market conditions, competition, and government policies, on the development of MSME businesses.
Use a Mixed-Methods Research Approach: Use a mixed-methods research approach to capture the nuances and complexities of the phenomenon being studied.
Conduct a Longitudinal Study: Conduct a longitudinal study to examine the impact of social media and entrepreneurial competencies on business development over time.
Frequently Asked Questions (FAQs) About the Effect of Social Media and Entrepreneurial Competencies on Business Development

Q: What is the main focus of this study? A: The main focus of this study is to analyze the influence of social media and entrepreneurial competencies on business development, with a focus on MSMEs of clothing that operate at the Medan Market Center.

Q: What is the significance of social media in business development? A: Social media has become an essential tool for businesses to reach their target audience, increase brand awareness, and drive sales. It allows businesses to interact with customers, share their products and services, and build relationships with their target audience.

Q: What are entrepreneurial competencies? A: Entrepreneurial competencies refer to the skills, knowledge, and attitudes that entrepreneurs need to possess in order to succeed in business. These competencies include leadership skills, marketing skills, financial management skills, and problem-solving skills.

Q: What are the findings of this study? A: The study found that social media has a positive and significant influence on business development, and entrepreneurial competence also shows positive and significant influence on business development.

Q: Why is social media more influential than entrepreneurial competencies? A: The study suggests that social media is more influential than entrepreneurial competencies because today's consumers are more active in finding products through social media platforms. The use of social media allows entrepreneurs to promote products widely and interactively, as well as building relationships that are closer to customers.

Q: What are the implications of this study for MSMEs at the Medan Market Center? A: The study suggests that MSMEs at the Medan Market Center should prioritize the development of their social media skills as a strategy to increase the competitiveness of their business. They should also focus on increasing their entrepreneurial competence, including leadership skills, marketing skills, financial management skills, and problem-solving skills.

Q: What are the limitations of this study? A: The study has several limitations, including the fact that it was conducted in a specific context, namely the Medan Market center, which may limit the generalizability of the findings. The study also used a quantitative research approach, which may not capture the nuances and complexities of the phenomenon being studied.

Q: What are the future research directions? A: Future research should aim to examine the impact of other factors, such as market conditions, competition, and government policies, on the development of MSME businesses. It should also use a mixed-methods research approach to capture the nuances and complexities of the phenomenon being studied. Additionally, a longitudinal study should be conducted to examine the impact of social media and entrepreneurial competencies on business development over time.

Q: What are the practical implications of this study for businesses? A: The study suggests that businesses should use social media effectively to promote their products and services, interact with customers, and build brand awareness. They should also focus on increasing their entrepreneurial competence, including leadership skills, marketing skills, financial management skills, and problem-solving skills.

Q: What are the policy implications of this study? A: The study suggests that policymakers should provide support for MSMEs, including training and development programs, to help them develop their social media skills and entrepreneurial competence. They should also create a favorable business environment, including policies that support entrepreneurship and small business development.

Q: What are the future directions for MSMEs at the Medan Market Center? A: The study suggests that MSMEs at the Medan Market Center should prioritize the development of their social media skills and entrepreneurial competence. They should also focus on building relationships with their customers, adapting to market changes, and innovating their products and services to stay competitive.