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Social networking is great for small business if your product or service is of interest to that specific audience.
It can take a lot of time and management, but it truly can level the playing field for small businesses and their larger competitors. I recently included something on my blog about this. I invite you to check it out...http://cascadeeffect.blogspot.com.
This is a great conversation for small businesses to have and if you`re patient and willing it can produce some great results.