Keeping a small business afloat in a tough economy can often mean learning some new tricks — like social networking.

A new study from the University of Maryland’s Smith School of Business shows a steady increase in social media adoption by small business. The school’s Small Business Success Index™ (SBSI), sponsored by Network Solutions® and the Center for Excellence in Service, reports social media adoption by small businesses has doubled from 12% to 24% in the last year.

The SBSI shows that nearly one out of five small business owners are actively using social media in their business. Small businesses are increasingly investing in social media applications including blogs, Facebook and LinkedIn profiles.

Key social media usage highlights include:

• 75% surveyed have a company page on a social networking site
• 61% use social media for identifying and attracting new customers
• 57% have built a network through a site like LinkedIn, and
• 45% expect social media to be profitable in the next twelve months.

The school’s study was based on interviews with 500 small business owners. Technology priorities include:

• Company Web sites seem to be the top technology investment in the next two years, with small businesses either adding new features/functionality to their existing Web sites or building one from scratch
• The ability to showcase their products and services online to attract new customers is second in the hierarchy of technology investments, and
• Social media investments rank third in small business investments to be made in the next two years.

To download a copy of the Small Business Success Index, click here.