Abstract:
This study examines the impact of social media on the growth of small and
medium-sized enterprises (SMEs) in Rathnapura District that operate in the manufacturing,
retail, service, and other sectors. Accordingly, this research focuses
on three key dimensions: mindful adoption, community building, and absorptive
capacity. Adopting a deductive, quantitative research approach with a crosssectional
survey design, this study employed snowball sampling to identify 110
SMEs actively using social media for business activities in Rathnapura District.
Primary data were collected using a structured questionnaire to ensure consistent
responses. Social media measurement used five-point Likert-scale questions, and
the target population comprised small and medium-sized enterprises operating
in the Rathnapura District. Multiple regression analysis was conducted using
SPSS to test four hypotheses examining the relationships between social media
and SMEs’ growth. The regression model accounted for 85.26% of the variance in
SMEs’ growth (R² = 0.8526, F = 204.482, p < 0.000), indicating a significant relationship
between social media and SME growth. Three dimensions significantly
predicted growth: Mindful Adoption (β = 0.368, p = 0.000), Community Building
(β = 0.262, p = 0.003), and Absorption Capacity (β = 0.326, p = 0.000). Notably,
this research emphasizes that the data and dimensions provide valuable empirical
evidence of the critical role of social media in influencing the development and success
of SMEs in this region. Moreover, this research confirms that effective use of
social media can significantly improve the growth prospects of small and mediumsized
businesses in Rathnapura. It is also essential for SMEs to increase their
competitiveness in the digital economy by strategically engaging with customers,
investing in targeted advertising, and maintaining high-quality content. The findings
of this study are expected to provide valuable insights into how SMEs can
effectively use social media to accelerate growth, enhance customer engagement,
and improve business performance. The study also offers practical implications
for policymakers and business owners in developing strategies to maximize the
benefits of social media use.
