Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between social media marketing and business sustainability of informal sector businesses has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of Lagos State where operating conditions differ markedly from more developed markets.

Lagos State presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

While social media marketing is widely discussed in policy and industry circles, empirical evidence on its actual effect on business sustainability of informal sector businesses within Lagos State remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to social media marketing are helping or hindering business sustainability of informal sector businesses — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Social Media Marketing on business sustainability of informal sector businesses in Lagos State.
2. To assess the extent to which social media marketing influences business sustainability of informal sector businesses within the study area.
3. To identify the challenges associated with social media marketing in relation to business sustainability of informal sector businesses.
4. To recommend strategies for optimizing social media marketing in order to improve business sustainability of informal sector businesses.

1.4 Research Questions

1. What is the effect of social media marketing on business sustainability of informal sector businesses in Lagos State?
2. To what extent does social media marketing influence business sustainability of informal sector businesses within the study area?
3. What challenges are associated with social media marketing in relation to business sustainability of informal sector businesses?
4. What strategies can be adopted to optimize social media marketing in order to improve business sustainability of informal sector businesses?

1.5 Significance of the Study

This study is significant to a range of stakeholders. For policymakers and regulators, the findings offer evidence to guide the design of frameworks that support healthier outcomes around business sustainability of informal sector businesses. For managers and practitioners within Lagos State, the study provides practical insight into how social media marketing can be better managed. Finally, it contributes to the academic literature on entrepreneurship by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

The study is limited to an examination of Social Media Marketing and its relationship with business sustainability of informal sector businesses within the context of Lagos State. It reflects a PhD-level scope of analysis and relies on data and perspectives available within that scope; generalizing the findings beyond this specific context should therefore be done with appropriate caution.