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Startups Leverage Social Media for Expansion

"Startups make more use of social media tools than established businesses, according to a survey conducted by VerticalResponse Inc., which provides e mail marketing and direct mail. The survey, which queried several hundred California businesses, categorized startups as businesses operating "
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Startups make more use of social media tools than established businesses, according to a survey conducted by VerticalResponse Inc.,  which provides e-mail marketing and direct mail.

The survey, which queried several hundred California businesses, categorized startups as businesses operating from one to three years, and established businesses as businesses with more than 10 years of operation.

The results, gathered by the company's survey tool, were revealed by VerticalResponse CEO Janine Popick on Nov. 19 at the inaugural Governor's Conference on Small Business in Los Angeles.

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Among key findings:

  • Eighty-five percent of startups use social media tools (e.g., blogs, social networks, Facebook, Twitter, YouTube) compared with 75 percent of established businesses. However, the majority of both startups (55.5 percent) and established businesses (57.3 percent) say that social media isn't working for them.
     
  • Established businesses have expanded globally in greater numbers than startups (56 percent vs. 31 percent). However, among startups with overseas customers, 82 percent said "it just happened." By contrast, 55 percent of established businesses put a concerted effort toward global expansion.
     
  • More than 50 percent of startups ranked lack of time or budget as the key roadblocks to online marketing, while less than 5 percent ranked either lack of technical skills or knowledge of the tools.
     
  • For established businesses, lack of time also led with a full half of respondents. But 28 percent cited lack of technical skills or knowledge of what's available as their leading roadblocks.

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