The Entrepreneurial Executive 

About: The Entrepreneurial Executive is an academic journal. The journal publishes majorly in the area(s): Small business & Entrepreneurship. It has an ISSN identifier of 1087-8955. Over the lifetime, 102 publications have been published receiving 922 citations.

Using Social Media to Increase Advertising and Improve Marketing

Abstract: This paper will focus on explaining why entrepreneurs, other practitioners, and faculty must understand the effects that the proper use of social media has on the success of businesses. There is a crisis in mass marketing which must be addressed. With the economy in its current condition, it is imperative that entrepreneurs also understand how to use social media to increase advertising and improve marketing. The traditional marketing model is being challenged, and how to generate leads, increase awareness, and ways of communicating are continually evolving. This paper will discuss the advantages and drawbacks of using social media and will answer questions relevant to the use of social media. INTRODUCTION With the introduction of the World Wide Web in 1 989, the internet became a global network. Since that time, also known as the Information Age, the amount of content available has changed drastically, and the use of Social Media has planed an important role. There are many definitions of Social Media, but one by Ward (2010), that appears to adequately describe the phenomenon states, " Social media is a type of online media that expedites conversation as opposed to traditional media, which delivers content but doesn't allow readers/viewers/listeners to participate in the creation or development of the content." There is a wide variety of social media, ranging from social sharing sites such as YouTube and Flickr through social networks such as Linkedln and Facebook. Social media also appears to be a driving force in the Attention Age (Attention Age, n.d.), which appears to have gained steam after the Information Age (also known as the Computer Age or Information Era). The Attention Age, which began in the first years of the 2 1 st century, is relevant because it has given individuals the ability to create and consume information immediately and distribute it on the Internet. In the Information Age, however, Google and Bing play a lesser role then they did in the Information Age. This is because the Attention Age appears to more userfriendly and focused than Google and Bing. In addition, Social media is important because it permits users to instantly obtain and share information. Social media avenues such as Facebook, MySpace, and YouTube, permits users to share content with friends, and Blogs, which are user created, permits individuals to also share information. Sites such as del. icio. us and Digg also permit users to organize and share content, and Twitter has become known for its ability to break news before the news even reaches traditional media outlets. Additional forms of social media include internet forums, wikis, podcasts, instant messaging, music-sharing, and voice over IP. REVIEW OF THE LITERATURE The potential usage of social media in the near future or even today is tremendous (Savage, 2010). As Savage (2010) indicated, the enormous volume of data provided by social media will provide both new challenges and new opportunities. Social media is already effective, but Savage predicted that once different types of social media recognize what is needed, the actual search engine time could be reduced from hours to minutes. Susan Dumais, a researcher for Microsoft, pointed out that the large amount of volume on the Web is very beneficial for some types of algorithms (Savage, 2010). Being knowledgeable of the value derived from social commerce networks is very important, especially since both social shopping communities and social commerce are increasing in size (Stephen and Toubia, 2010). Stephen and Toubia (2010) found that the sellers who benefit most from a network are those who gain the most accessibility by using the network. Understanding work-of-mouth marketing in online communities is also important (Kozinets et al, (20 1 0). Kozinets and others (2010) explained that word-of-mouth marketing, which is influenced by consumer-toconsumer spending, has encompassed social media and viral marketing techniques. …

The Study of Leadership in Small Business Organizations: Impact on Profitability and Organizational Success

Abstract: INTRODUCTION In the 21st century, both public and private business owners visualized economic growth, but growth slowed when unethical leaders became obsessed with satisfying their personal needs instead of the needs of their customers and their employees. Such unethical practices had an impact on economic growth, which affected unemployment, capital investment for small businesses, the loss of individual pensions, and small business bankruptcy. Economic uncertainty began to surface with the failure of the e-business sector, Enron, and WorldCom (Luthans, Luthans, Hodgetts, & Luthans, 2001). The U.S. economy was in decline before 9/11 because of reduced consumer spending, increasing unemployment, and declining economic growth (Shaw and Shapiro, 2002). The 9/11 attack accelerated the economic decline, brought additional uncertainty to the declining economy, and sounded the alarm for leadership at all levels to concentrate on their organization's success (Luthans et al., 2001, p. 4). A large component of the U.S. economy stems from successful small businesses. Small business leaders use a variety of resources to position an organization to achieve its goals and objectives (Howard, 2006, pp. 73-88). The U.S. economy enjoyed remarkable economic success from 1996 through 2006, as indicated by the important economic measurement called rate of productivity growth (Acs & Szerb, 2007). Because of improved economic conditions, the demand for small businesses increased in this market (Fuller, 2003). BACKGROUND OF PROBLEM A small business is independently owned and operated and not dominant in its field of operation (U.S. SBA, Office of Advocacy, 2004). A small business is a single entity that conducts business transactions, such as services or industrial operations (The U.S. Census Bureau, 2005). Over the past 30 years, the United States has witnessed a powerful emergence of small businesses (Kuratko, 2007). America's small businesses generated more than half of the nation's GDP, served as the principal source of new jobs in the U.S. economy, and employed more than 50% of the private workforce, which grew to 51% (Wong, 2002; Howard, 2006). In 2002, small businesses accounted for 75% of total employment growth in the U.S. ("Vital Role," 2002). Small businesses are essential to the growth of the U.S. economy, as demonstrated by the number of organizations increasing 452,640 from 2000 to 2004 (U.S. SBA, Office of Advocacy, 2004). Statistics from the U.S. Census Bureau (2005) on small businesses listed over 13.2 million organizations in 2004. Six hundred seventy two thousand new small businesses were created in 2005, the largest number in U.S. history (Kuratko, 2007). The increase of small businesses aided economic growth and created new employment. Small business growth was associated with target markets, increased sales, profitability, achieving organizational goals, and competition. Statement of Problem The failure of small businesses has been a problem creating unemployment, affecting the U.S. gross domestic product (GDP) and slowing economic growth. Nine out of10 small businesses fail in the first three years (Headd, 2003). Small businesses without organizational goals and objectives remain in existence only 2 or 3 years (Beaver, 2003, p. 17). Failure then becomes a concern of both internal and external stakeholders. In 2002, 21,078 small businesses closed because of failure (Knaup, 2005). In 2005, over 32,400 small businesses failed, which represented a 9% increase over 2004 ("The World Slow-Down," 2006). Beaver (2003) researched data from Dun and Bradstreet and found the primary cause of small business failures in the United States was management incompetence as leaders. Poor Leadership in Small Businesses According to Perry (2001) and Beaver (2003), poor leadership practices in small businesses are the cause of many small business failures. Gordon and Yukl (2004) advocated more research on leadership skills relevant to turbulent small business environments. …

Reasons Why Small Businesses Fail: And How to Avoid Failure

Abstract: INTRODUCTION The increase in entrepreneurial activity is a significant trend in the US economy. Unfortunately, small business owners often face the reality of failure. The important role of small business suggests that an understanding of why firms fail and succeed is crucial to the stability and health of economy (Gaskill, Van Auken & Manning, 1993). Of major concern to any would-be entrepreneur is the chance of success or failure of the proposed business. It appears critical for researchers and business owners and managers to better understand the factors contributing to the failure of small business. Success versus failure research benefits entrepreneurs, those who assist, train and advise them, those who provide capital for their ventures, suppliers, and public policy makers (Lussier, 1995a: 1995b). REASONS WHY BUSINESSES SUCCEED AND FAIL: LITERATURE REVIEW There are many studies to better understand business success versus failure. However, as Gaskill, Van Auken and Manning (1993) stated: there are many questions still to be resolved and warrant additional exploration ... previous studies do not provide a comprehensive or unified explanation for small firm failure. There is no generally accepted list of variables distinguishing business success from failure. Prior researchers have created discrepancies within the literature by reporting different variables as contributing factors to success or failure. The two most commonly stated distinguishing variables are capital and management experience. However, in 22 journal articles only 14 (64%) specifically state that these two variables contribute to success versus failure; while 5 (20%) other studies claim they do not, with 3 (14%) not identifying the variable as a contributing factor. The literature list of success versus failure variables in this study was developed by including the fifteen major variables, identified in 22 journal articles as contributing to success versus failure. See Table 1 for an explanation of the 15 variables, and Table 2 for a comparison of the 22 studies that support, do not support, or do not mention each variable. As shown in Table 2, there are discrepancies among several studies. Clearly, there is no generally accepted set of reasons why businesses fail or succeed. Based on a lack of agreement on why businesses fail, the reasons given by 100 entrepreneurs may have significant value in helping to understand, explain, predict, and control small business failure. SURVEY METHODOLOGY The population from which the sample was selected for this study was limited to the six New England states (Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont). According to Dun & Bradstreet (1995), the population of failed business includes both Chapter 7 (liquidated) and Chapter 11 (restructuring debts to stay in business) companies. Firms that go out of business without loss to creditors are not considered failures: they are discontinued businesses. The population of failed businesses includes both Chapter 7 and Chapter 11 companies. However, once a business has liquidated under Chapter 7, its owner is very difficult to locate to answer the questionnaire. Based on a cost-benefit analysis, the questionnaire was only sent to Chapter 11 companies. Chapter 11 firms are early representatives of closed businesses. Wood (1990) reported that less than 5 percent of Chapter 11 companies survive whereas Flynn (1989) reported a 10 to 12 percent survival rate. In previous business failure studies, Corman and Lussier (1991), Lussier and Corman (1995) and Lussier (1995a; 1995b) used a sample of Chapter 11 firms. Based on bankruptcy court records, the questionnaire was mailed to the owner/CEO of each company filing Chapter 11 during the most recent year. There were 100 usable questionnaires returned yielding a 38 percent response rate. Even though the questionnaire was mailed to Chapter 11 companies, most businesses eventually convert to Chapter 7. …

The Evolution of Social Media as a Marketing Tool for Entrepreneurs

Abstract: Traditional marketing methods can no longer sustain a business. Businesses have been aware for the past few years that social connectivity was becoming the key to marketing. However, the time, effort, usefulness and ability to measure outcomes made using social media for marketing impracticable. With the advent of analytics and other sophisticated measurement tools, entrepreneurs are finding that they can now not only take advantage of social media as a marketing tool but use data to optimize their social media marketing campaigns. This study was conducted to examine trends in social media marketing and the resources available to entrepreneurs to jump start their marketing strategy by incorporating social media. INTRODUCTION Entrepreneurs face many daunting tasks in the operation of their businesses, not the least of which is maximizing the marketing potential of social media while at the same time being able to measure cost benefits. According to the 2011 Q3 Nielsen State of the Media: The Social Media Report (NMincite, 201 1), "60 percent of people who use three or more digital means of research for product purchases learned about a specific brand or retailer from a social networking site" (para. 1). This statistic, and a host of others, serves to prove that tried and true social networking sites like Twitter, Facebook, Foursquare, Linkedln, and newcomers Google+ and Tumblr are here to stay. Furthermore, they are influencing the way consumers buy products and services. To encourage business owners, large and small alike, to use social media as a marketing platform, several social media companies have developed business-specific tools or made it possible to brand an online profile to a business. The number one deterrent of social media for small business has always been the time commitment required to keep profiles active and the almost impossible task of calculating the return on investment (ROI). Advances in the social media scene like Hootsuite, a social media dashboard and scheduler, allows scheduling and posting content to all online profiles simultaneously. Facebook Pages Insights, which allows tracking the number of visitors to a Facebook Business Page, helps close the gap between big brand experts (i.e., Coke and Apple) and average mom and pop businesses at leveraging social media. INTERNET GROWTH AND CURRENT SMALL BUSINESS SOCIAL MEDIA LANDSCAPE In 1995 statistics indicated 0.4% of the world population used the Internet. The latest figures show that number has grown to 32.7% or some 2.2 billion users (Internet World Stats, 2012). With this incredibly fast evolution of the Internet and social media, it is evident from everyday media that big businesses are making use of every social media outlet available today; but are small businesses doing the same? An industry study in 2011 published in the Social Media Examiner surveyed 3,342 marketers, and just under half of those were self-employed or small business owners (Stelzner, 201 1). The results ofthat survey are summarized below: * Overall, 90% of the marketers surveyed agreed with the statement "Is social media important to your business?" and 66% of small business owners strongly agreed with the statement. * 80% of marketers indicated social media use generated more exposure for their business. * An increase in search engine rankings was seen by almost two-thirds of marketers. * Spending as little as six hours weekly generated leads for 52%» of marketers, with small business owners more likely to strongly agree to the lead generation question. * 59%) of small business owners saw a reduction in marketing costs when social media were implemented. * Facebook, Twitter, Linkedln, and blogs dominated usage stats, with 92%, 84%, 71%, and 68%) respectively, with 78%> of small business owners indicating they were more likely to use Linkedln. APPROACHES USED TO DEFINE AND MEASURE SOCIAL MEDIA ROI While some social media strategies, such as offering Facebook- or Twitter-specific deals and coupons, can be directly traced to a traditional form of ROI like generating a sale, it is important to note that other facets of social media interaction also constitute ROI and can be important indicators of the health of a social media campaign. …

How Small Business Owners Can Use Social Networking to Promote Their Business

Abstract: INTRODUCTION Small business owners typically rely on traditional means to advertise their businesses and services These means typically include direct mail, local newspapers, fliers, radio, signage, and trade shows With the age of the Internet we have seen the addition of websites and email marketing added to the weapons the small business owner may use For example, Fishbowl Marketing is a promotion-based email firm in the restaurant industry It combines restaurant and email expertise to develop email promotion programs for independent restaurant owners Small business owners who are members of Chambers of Commerce or industry trade association such as the New Orleans Metropolitan Convention and Visitors Bureau (NOMCVB) may advertise their businesses on the organization website or send mass emailing to fellow members Currently if a small business owner wanted to develop business relationships he or she could go to a networking session or business card exchange conducted by a local business trade association such as a Chamber of Commerce A new way of networking has arrived Social media or network services such as Facebook, Twitter, and other websites have impacted how millions of Americans especially those under 35 interact or network with one another, shop and view brands (Swartz, August 28, 2009) Businesses are spending money in social media at a faster rate than any other form of online marketing Studies by Forrester Research show that spending on social networking will increase from $455 million in 2008 to $31 billion in 2014, a 335 percent increase In contrast, spending on email marketing will grow from $12 billion in 2009 to 21 billion in 2014 (Horovitz, July 24, 2009) In addition, some 25 percent of small businesses surveyed by Adology Research said they would spend more on social networking in 2009 (Horovitz, July 24, 2009) Interest in and the use of social networking by businesses large and small reflects the growing importance of the use of this medium This paper illustrates how small business owners can use social networking to market their businesses Advantages and disadvantages of two social networking tools, Facebook and LinkedIn are discussed Guidelines for using these tools are presented SOCIAL NETWORKING Social networking is the grouping of individuals into specific groups, like small rural communities or a neighborhood subdivision Although social networking is possible in person, especially in the workplace, universities and high schools, it is most popular online This is because like most high schools, colleges, or workplaces, the Internet is filled with millions of individuals who are looking to meet other people, to gather and share first-hand information and experiences about any number of topics from golfing and gardening to developing friendships and professional alliances (whatissocialnetworkingcom, 2009) Social networking online started as a way for friends within a school to stay connected with each other online as opposed to using a telephone or in person The individual can decorate his or her own personal page with virtual trinkets and photos, thus expressing one's own identity or personality Within this virtual world, they can share information, experiences, pictures, videos, and purchasing preferences including recommendations of a vendor's products or services These recommendations have led the business community to take notice of online social networking and the power that virtual word-of-mouth advertising has on the sale of their products and services Two sites in particular, Facebook and LinkedIn, have become particularly important in the exposure of small businesses and the wares they offer Facebook was founded in February 2004 and is a social utility that helps people communicate more efficiently with their friends, family and coworkers The company develops technologies that facilitate the sharing of information through the social graph, the digital mapping of people's real-world social connections (Facebook's company website, 2009) …