Financial Benefits and Impact of Facebook
Introduction:
Facebook is one of the most popular social media platforms that have been connecting people across the globe. Its benefits revolve around its ability to coordinate with people because people make it easier to socialize and interact with each other. It also wastes time and resources of students because they may distract from studies through it. However, overall, the use of social media platforms, including Facebook, is beneficial in terms of financial perspective. Numerous studies have made this happen. These benefits and positive impacts are not limited to an individual only, but Facebook helps organizations and businesses of all sizes.
The Argument:
The financial impact and benefits of Facebook for small and medium enterprises are numerous, and various research studies have confirmed a positive effect. Many economic and non-financial performance indicators and factors are related to Facebook and social media platforms (Ainin, Parveen, Moghavvemi, Jaafar, & Shuib, 2015).
Facebook also increases the tendency to take more risks. High risk relates to more profit and more enormous financial benefits. The ability of users to interact more people leads them to take more risks (Chan & Saqib, 2015). Individuals and organizations can both be beneficiaries of this attribute of Facebook.
For evidence, the Deloitte report is there to establish the economic impact of Facebook. The report has covered the global implications of Facebook. Economic activity directly links with good financial results (Deloitte, 2015). The commercial or financial impact of Facebook may be in different forms and ways. Activities over the Facebook platform are also helpful in strengthening financial benefits. Commenting is one such activity, and companies can increase their sales through it (Yoon, Li, Ji, North, Hong, & Liu, 2018). In another work, the positive relationship of Facebook with financial benefits has been established (Heimer & Simon, 2012). However, in the cost and benefit analysis of Facebook, it leads to a waste of time for students (Gafni & Deri, 2012). It shows that Facebook might have limitations, as well.
However, the majority of studies support the positive impact of Facebook, but young students may tend to waste their time. It is better to consider every effect of Facebook on users.
Conclusion:
The argument concludes that Facebook has a positive impact and numerous benefits for the financial performance of companies of all sizes. Individuals may also benefit from it. Therefore, companies and businesses should harness the power of Facebook because plenty of opportunities have been opened for them. However, it may waste the time of young users, and companies should consider this important aspect. The argument recommends using the social media platform to explore opportunities for business.
References
Ainin, S., Parveen, F., Moghavvemi, S., Jaafar, N. I., & Shuib, N. L. (2015). Factors influencing the use of social media by SMEs and its performance outcomes. Industrial Management & Data Systems, 115 (3), 570-588.
Chan, E. Y., & Saqib, N. U. (2015). Online social networking increases financial risk-taking. Computers in Human Behavior, 51, 224–231.
Deloitte. (2015). Facebook’s Global Economic Impact. Retrieved March 5, 2020, from https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/technology-media-telecommunications/deloitte-uk-global-economic-impact-of-facebook.pdf
Gafni, R., & Deri, M. (2012). Costs and benefits of Facebook for undergraduate students. Interdisciplinary Journal of Information, Knowledge, and Management, 7 (1), 45-61.
Heimer, R. Z., & Simon, D. (2012). Facebook Finance: How Social Interaction Propagates Active Investing. AFA 2013 San Diego Meetings Paper, 1-70.
Yoon, G., Li, C., Ji, Y., North, M., Hong, C., & Liu, J. (2018). Attracting comments: digital engagement metrics on Facebook and financial performance. Journal of Advertising, 47 (1), 24-37.
