Small Businesses Use Social Media Instead of a Website, Despite Risks
January 31, 2018
New survey indicates 1 in 5 small businesses use social media in place of a website. Many assume a website is cost-prohibitive and may not consider the risks of not having one.
WASHINGTON, DC, January 31, 2018 – More than one-third (36%) of small businesses do not have a website, according to the fourth annual Small Business Survey conducted by Clutch, a B2B research firm. One in five small businesses selectively use social media instead of a website in an effort to engage customers
The survey indicates that small businesses consider cost a bigger concern than the potential repercussions of not having a website.
Social media platforms such as Facebook and Instagram attract small businesses by cultivating a highly engaged user base and offering features to audiences, and potential small business customers, such as in-app shopping and reviews. 
However, relying solely on social media may be a risky strategy for businesses, experts warn.
“Whenever you put all of your eggs into someone else’s basket, it’s risky,” says Judd Mercer, Creative Director of Elevated Third, a web development firm. “If Facebook changes their algorithm, there’s nothing you can do.”
Facebook recently announced changes that potentially increase that risk. The social media platform plans to start prioritizing posts from family and friends over those posted by small businesses and other brands.
This new policy will likely make it more difficult for brands to reach their audiences through social media. As a result, websites are expected to regain importance among businesses--as long as cost is not considered an obstacle.
Among small businesses that do not currently have a website, more than half (58%) plan to build one in 2018.
Some Small Businesses Say Website Cost is Prohibitive, But Others Cite Costs of $500 or Less
The Clutch survey found that small businesses differ in their perceptions regarding the cost of a website.
More than a quarter (26%) of small businesses surveyed say cost is a key factor that prevents them from having a website. However, nearly one-third of small businesses with websites (28%) report spending $500 or less.
This disconnect between perceived and actual website costs may be due to the growing popularity of DIY website builder software such as Wix or Squarespace. These companies offer low cost website options and require no coding experience.
Small businesses may not be aware that some web development agencies offer packages that defray costs by dividing website construction into multiple phases or sliding rates for small businesses.
While many small businesses may expect to spend tens of thousands of dollars on a website, the survey finds that nearly half (48%) spend between $500 and $10,000.
“You don’t necessarily need to launch with your first-generation website,” said Vanessa Petersen, Executive Director of Strategy at ArtVersion Interactive Agency, a web design and branding agency based in Chicago. “Maybe just start small.”
By reconsidering the options and true costs for developing a website, small businesses may find that having a website is within reach, adds Petersen.
Mobile-Friendly Websites Becoming Standard Feature
Businesses that do have websites are moving en mass to mobile-friendly ones, the survey found. Over 90% of respondents said their company websites will be optimized for viewing on mobile devices by the end of this year.
In addition to the 81% of company websites that are already optimized for mobile, an additional 13% that say they plan to optimize for mobile in 2018.
Clutch’s 2018 Small Business Survey included 351 small business owners. The small businesses surveyed have between 1 and 500 employees, with 55% indicating that they have 10 or fewer employees. More than half (57%) reported annual revenue of less than $1 million.
To read the full report and source the survey data, visit: https://clutch.co/website-builders/resources/small-business-websites-2018
For the raw data, a comment on the findings, or an introduction to the experts interviewed for this report, contact Michelle Delgado at mdelgado@clutch.co.
About Clutch
A B2B research, ratings, and reviews firm in the heart of Washington, DC, Clutch connects small and medium businesses with the best-fit agencies, software, or consultants to tackle business challenges together and with confidence. Clutch’s methodology compares business service providers and software in a specific market based on verified client reviews, services offered, work quality, and market presence.
Contact
Michelle Delgado
mdelgado@clutch.co
(202) 869-3866