Social networking benefits SMEs, says study

Date: 30th October 2008

Social networking tools such as Facebook can be beneficial to the operation of small firms, according to a new study.

Research by the think tank Demos has revealed that establishing relationships through Web 2.0 platforms can lead to high productivity and innovation in employees.

Other advice from the group includes encouraging staff to network with people outside the company and keeping in touch with employees who have left the business.

Robert Ainger, a spokesman for Orange, which commissioned the study, said: "The use of [social networking] technology has added more richness and enabled more networks to become truly global and fundamentally change business models.

"Networks contribute to organisational resilience, a vital attribute in economic downturn."

In 2007, it was revealed by internet information provider cornScore that Facebook had more than 52 million members around the world.

Business start-ups have until tomorrow (October 31st) to file a paper self-assessment tax return with HM Revenue and Customs.