Nothing could be further from the truth. As the efficacy of old staples like the Yellow Pages plummet, now is the time to invest in social media. You may even find that being small is a huge competitive advantage.
Why? You are more nimble. You can respond much more quickly to prospect inquiries. If you are set up properly, you can literally respond to all the touch points on your Social Web. Every time someone talks to you or mentions you, you can be there. You have a serious competitive advantage over a big business who simply would not be able to do that.
Jenifer Van Grove, in a recent Mashable article, had a great Twitter idea for small businesses. She suggests that you build a separate Twitter Lists to cater to each type of consumer you have. Separating out your customers into different categories and groups enables you to conduct personalized and targeted conversations, not to mention excellent customer service.
The way you group your customers is at your discretion. So, imagine you are a florist shop or a local café. You could create a list for your most loyal clients and even give out special coupons or offerings to this group. It is like a VIP service and will make those clients feel they are a special, pampered elite. (Seeing this, your less regular customers very well want to have this type of treatment as well!)
Small is the new big. There is nothing like social media to level out the playing field.