Indian small businesses are making a definitive shift online. According to the latest 2025 Global Entrepreneurship Survey by GoDaddy, nearly half of them now operate primarily through digital channels—be it their own websites, online marketplaces, or social media. It’s a notable transition, particularly for entrepreneurs keen on expanding their reach, boosting sales, and staying ahead in a rapidly evolving market.
Key Takeaways
- Digital Shift: Nearly half of Indian small businesses now primarily operate online.
- Physical vs. Digital: While 36% still function mainly from physical locations, 17% rely primarily on their websites, and 21% focus on social media.
- Sales Channels: 37% sell in person, 19% via online stores or marketplaces, and 29% directly through social media.
- Social Media Importance: 83% consider social media vital for sales; 62% rely on it for business insights.
- Social Media Challenges: Content creation (30%), time constraints (39%), audience reach (56%), and converting followers (46%) remain key issues.
- Demand for AI Tools: 63% seek better ways to connect with audiences, and 46% want simpler content tools. AI users show stronger interest in analytics and templates.
The Rise of Digital-First Small Businesses
Running a small business in India today doesn’t necessarily mean having a storefront. The data paints a clear picture: while 36% of entrepreneurs still depend on physical locations, an impressive 17% now mainly use their own websites, and another 21% have turned to social media platforms as their primary space to do business.
Sales strategies reflect this mix too. Although 37% continue to sell in person, 19% use online stores or third-party marketplaces, and 29% have gone all-in on social media sales. The takeaway? Business owners are increasingly choosing a hybrid approach—physical and digital—to meet customers wherever they are. It’s a smart move, really, considering how consumer habits are shifting.
Social Media: A Key Tool with Real Challenges
There’s no doubt that social media has become indispensable. About 83% of small business owners say it plays a critical role in their sales efforts. In fact, nearly half (47%) say it’s very important. What’s perhaps more surprising is that 62% rely on social platforms as their main source of business knowledge—even more than books, blogs, or AI tools like ChatGPT, which both stood at 44%.
But with opportunity comes challenge. Creating engaging content remains a big hurdle—30% admit they struggle to come up with ideas that click with their audience. Another 39% simply don’t have enough time to post consistently. And even when content does go up, converting likes and follows into actual revenue isn’t easy. More than half (56%) say they can’t quite reach the right people, and 46% find it tough to turn followers into paying customers.
So while social media is clearly crucial, it isn’t exactly a magic wand. Small businesses are still figuring out how to make it truly work for them.
The Need for Smarter Tools and AI Support
What’s becoming clear is that entrepreneurs aren’t just aware of the hurdles—they know what might help. A significant 63% say they need better tools to connect with the right audience. And 46% are specifically looking for simpler, more efficient content creation tools.
AI seems to be part of the answer, especially among those already dabbling with it. Compared to non-users, AI adopters show more interest in performance insights (38% vs. 28%) and in receiving ready-to-use templates and writing tips for ads or captions (37% vs. 29%). In other words, business owners aren’t just looking to automate—they’re hoping for intelligent, results-driven support.
Apurva Palnitkar, Senior Director of Marketing at GoDaddy India, put it well: “Indian entrepreneurs are digital-first and increasingly tech-savvy. While they are already using social media to connect with customers, the next growth will come from adopting smart AI tools that simplify marketing and improve reach. At GoDaddy, we focus on providing intuitive, AI-powered solutions like Show In Bio that help small businesses do more with less, saving time while getting good results.”
As India’s small businesses continue this digital evolution, the demand for accessible, effective tools will only grow. GoDaddy is stepping into this gap with solutions like Show In Bio, GoDaddy Studio, and GoDaddy Airo. These tools aim to simplify digital marketing and help entrepreneurs convert online engagement into tangible business outcomes.
FAQ
Q1: How are small businesses in India changing their operations?
A1: Nearly half are now primarily operating online via websites, online marketplaces, or social media, rather than relying solely on brick-and-mortar stores.
Q2: What is the role of social media for Indian entrepreneurs?
A2: Social media is central—83% say it’s important to sales, and 62% use it as a main source of business knowledge.
Q3: What are the main difficulties small businesses face with social media?
A3: Key struggles include coming up with engaging content, consistent posting, targeting the right audience, and converting followers into buyers.
Q4: How can AI help Indian small businesses?
A4: AI can simplify content creation, offer performance insights, and help with writing templates, ultimately saving time and improving marketing effectiveness.
Q5: What are some GoDaddy tools mentioned that help small businesses?
A5: GoDaddy offers Show In Bio, GoDaddy Studio, and GoDaddy Airo—all designed to streamline digital marketing and help businesses succeed online.
