Barriers and Strategy Analysis for the Usage of Social Media by small and medium-scale enterprises: A Systematic Review

Small and medium-sized enterprises (SMEs) are vital contributors to economic growth, yet they often face challenges in utilizing social media effectively for customer engagement. This systematic review explores the barriers SMEs encounter in engaging customers through social media and examines the strategies they employ to enhance customer engagement and firm performance. Based on an analysis of 45 studies published between 2011 and 2024, the review identifies key barriers to customer engagement, including a lack of skilled personnel, limited resources, and inadequate IT infrastructure. Despite these challenges, SMEs utilize various strategies to optimize social media engagement, such as leveraging modern digital marketing tools, creating authentic and engaging content, and strategically using platforms like Facebook and Instagram. Furthermore, SMEs enhance customer relationships through consistent content delivery, interactive communication, and the use of social media analytics. These strategies align social media efforts with business goals, contributing to improved firm performance. While this review primarily focuses on SMEs in developing economies, it incorporates transferable insights from developed countries such as Germany, the UK, and Australia. These insights provide comparative perspectives and highlight scalable solutions that can be adapted to resource-constrained settings.