Does Social Media Work for Small Biz?

This chart from a recent study shows that social media are not helping small businesses very much at this point. Only 3% of respondents said that they found social media to be very helpful. The article makes the observation that limited manpower seems to be a root cause of small businesses not making b better use of these new tools. To me, that also implies a certain lack of familiarity as well. The question this raises in my mind is, "Could social media be more helpful to small businesses, and how could the problems with using it effectively be overcome?"
My other reading on this subject suggests that certain kinds of businesses have more opportunity to benefit from social media than others. It seems that businesses targeting a younger demographic can do more with the medium because that is where the largest user audience comes from. The trick seems to be to offer something on the social medium that attracts the attention of the audience and encourages them to forward the information about the offer to their network of friends. What you are attempting to do is to generate the "viral effect" that the medium makes available to you.
I would certainly be interested in hearing from anyone who has used social media to good purpose in their business. After all, some 3% of respondents have said they are getting good results. What is it that they are doing that works for them, and how can the rest of us learn something from that?
Labels: community building, Evolving Practices, social media