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Digital Entrepreneurship and Social Media Platforms: Examining the Growth of Micro-Businesses in Tamil Nadu

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Issue Abstract

Abstract

Social media platforms are widely recognized as enablers of entrepreneurial activity; however, their impact on micro-business growth remains under-theorized in emerging economy contexts. This study examines how and under what conditions social media usage translates into business growth among micro-entrepreneurs in Tamil Nadu, India. Drawing on a capability-based perspective, the study proposes that social media marketing influences business growth indirectly through customer engagement, while digital literacy and digital payment adoption act as enabling conditions. Using survey data from 350 micro-entrepreneurs and Structural Equation Modeling (SEM), the findings reveal that social media usage alone does not guarantee growth. Instead, customer engagement serves as a key mediating mechanism, and digital capabilities significantly enhance effectiveness. The study contributes to digital entrepreneurship literature by moving beyond deterministic assumptions and offering a contextualized explanation of platform-based business growth. Practical implications are provided for entrepreneurs and policymakers to strengthen digital capability development in emerging markets.

Keywords: Digital entrepreneurship, Social media platforms, Micro-businesses, Online marketing, Tamil Nadu.

Author Information
Dr. S. Arokia Punitha Head and Assistant Professor, Department of Business Administration, Holy Cross College (Autonomous), Tiruchirappalli – 02
Issue No
7
Volume No
6
Issue Publish Date
05 Jul 2026
Issue Pages
13-30

Issue References

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