A report by the Robert H. Smith School of Business at the University of Maryland shows that American small businesses’ use of social media has doubled in the past year, from 12% to 24%.

According to the report, titled the Small Business Success Index, one in five small businesses are adopting social media into their business plans. The most popular tools are Facebook and LinkedIn profiles and blogs.

Download the full SBSI as a PDF at Network Solutions.

The report also includes a testimonial from an eye doctor who sees the benefits of social media more clearly than most (wa-waaa), and who we kind of want to hug.

“In order to meet the growing challenges of a tough market last year, I was forced to consider alternative options to keep my business visible,” says small business owner Dr. Alan Glazier, CEO and Founder, Shady Grove Eye and Vision Care. “With a very small investment in social media marketing, I was able to generate new business opportunities. Our Google ranking is consistently number one for many of the phrases people use to search for eye doctors in and around my city and we have received a “bump” in terms of new visitors to the site. My blog has been picked up by different news sources and led to media interviews. I am now recognized as a thought leader in social networking within my profession and lastly but most importantly, my marketing budget has been reduced by more than 80%.”

According to the index, 61% of businesses actively use social networking sites tools like Facebook and LinkedIn as a means of attracting new customers. 39% have created blogs about their areas of expertise, like the good doctor above. Only 16% use Twitter.

It’s interesting to note that 50% of the small businesses surveyed said that adopting social media took more time than expected. Hey — I sympathize. Generating content takes work! (And if you need help …)

In light of the economic downturn, many businesses praised social media as a cheaper means of marketing than traditional advertising. And while 17% found that engagement in social networking with customers created a forum for criticism, only 6% felt that it had hurt them.

I guess I shouldn’t be surprised that the overall number — 24% — is kind of low low. Though it seems like many mom-n-pops have taken the time to set up at least a Facebook fan page, there are still tons of small businesses that have yet to begin beefing up their profiles and cranking out content.

And though 45% said that social media engagement would become profitable “in the next 12 months,” many small businesses are still pouring cash down the drain of print advertising. Sigh. They can’t all be like Dr. Alan.

Were you surprised by the report’s findings?

Further Reading: John Jantsch’s small-business-focused Duct Tape Marketing blog.

(Via Mashable)