SOCIAL MEDIA USAGE AND THE SALES PERFORMANCE OF SMALL AND MEDIUM SIZED ENTERPRISES: A CASE STUDY OF THE RETAIL SECTOR OF RUBAGA AND NAKAWA DIVISIONS IN KAMPALA, UGANDA

Abstract

This study looks into how social media use affects small and medium-sized businesses' (SMEs) retail sales performance in Kampala, Uganda's Nakawa and Rubaga districts. Four main goals of the research are as follows: (1) assessing the effect of the frequency of social media usage on sales performance, (2) determining the influence of the type of content shared on social media, (3) identifying the most effective social media platforms for enhancing sales performance, and (4) evaluating the effects of social media advertising on sales performance. The study employed a mixed-methods technique to gather quantitative data from 100 retail SMEs using surveys. Correlation and regression analyses were performed on the data to investigate the relationship between sales performance and social media usage. Platform diversity had a significant positive effect on sales performance (B = 0.991, β = 0.604, p = 0.001), suggesting that using a wider range of social media platforms strongly enhanced sales outcomes. The other predictors—frequency (B = 0.214, p = 0.155), social media advertising (B = -0.210, p = 0.493), and content (B = 0.217, p = 0.438)—did not show statistically significant effects individually, indicating that changes in these variables alone were not sufficient to significantly influence sales performance. According to the study's findings, retail SMEs can greatly improve their sales performance by using social media in a consistent, planned manner in conjunction with interesting content and focused advertising. It advises companies to invest in premium visual content and advertising, evaluate performance indicators on a regular basis, and diversify their social media presence. Future studies should compare other industries, investigate the influence of newly emerging social media platforms and analytics tools, and use longitudinal methodologies to look at the long-term effects of social media usage. It's also advised for future investigations to comprehend how cultural and demographic aspects affect social media marketing tactics.