A new study by Markel Direct, the small business insurance specialists, has revealed the importance of social media for small businesses and tradespeople in the UK.
The study, which asked 501 UK small businesses and tradespeople how they use social media to market their business, found that 84% generated at least some of their business through social media. For many, these platforms are becoming a significant source of revenue, with almost 3 in 10 (29%) estimating that between 10% – 19% of their business now comes directly from social media activity.
The impact on business growth is clear too, with almost 6 in 10 (59%) reporting that their social media presence has helped increase sales or generate new leads, which is now the primary objective for a third (33%) of small business owners using social media, ahead of showcasing their work (28%) or raising their business profile (22%).
Social media is bringing in extra revenue for nearly half of small businesses
The study also found that many entrepreneurs are also generating extra income directly from their social media activity, away from the boost in leads and sales. 3 in 10 say they have made money through creator funds, views or followers, demonstrating how social platforms are creating new revenue opportunities for small businesses beyond their core business activities.
This is especially true among younger business owners, where almost half (47%) of those aged 18-24, and 49% aged 25-34 say they have earned money directly through creator funds, views or followers, separate from business sales or bookings, potentially due to being savvier with the marketing channel.
Some businesses are also actively investing in growing their online presence, with 38% paying for advertising or sponsored posts to increase visibility
Whilst social media is proving valuable, many business owners are having to invest a significant amount of time to achieve results. More than three-quarters (76%) spend time creating or editing content every week, with over half (54%) dedicating between one and three hours weekly to content creation. A further 11% spend between four and seven hours each week producing content for their channels, on top of their usual business activities, showing that social media is adding to the already heavy workload small business owners face.
Social media drives growth, but raises legal concerns
Social media is a clear growth driver for small businesses, and many owners are aware of the responsibilities that come with posting content online – however, the study revealed that significant gaps remain when it comes to protection and preparedness.
The research found that only 39% have insurance in place to cover legal action relating to issues such as copyright infringement or breaches of confidentiality linked to their social media activity. In contrast, nearly half (47%) say they do not have this type of protection, while a further 8% are unsure whether they are covered.
Despite the potential consequences, some businesses continue to share client work online without following clear processes. Nearly one in five (19%) admit they do not always obtain client permission before posting images or videos of completed work on social media.
Worryingly, more than a quarter (28%) say they would not know what steps to take if a client raised a legal concern about content they had shared online.
Rob Rees, divisional director at Markel Direct, says:
“Social media has become one of the most powerful ways for small businesses to showcase their expertise and attract new customers, but many business owners don’t realise that the same rules around consent, copyright and confidentiality apply online as they do offline.”
“Many entrepreneurs have effectively become marketers overnight, often without formal training or dedicated support. Taking a few simple steps, such as obtaining written permission before sharing client projects and understanding what insurance protections are available, can help reduce the risk of disputes further down the line.”
To read the full study, visit the Markel Direct website.
Please note: This article provides guidance for information purposes only. It should not be relied upon wholly when making or taking important business decisions – always seek the services of an appropriately qualified professional.
