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According to the GoDaddy 2025 Global Entrepreneurship Survey, nearly half of small businesses in India now primarily operate online—using websites, marketplaces, or social media to sell. This marks a clear shift as entrepreneurs embrace digital channels to reach customers, grow sales, and remain competitive.
The Rise of Digital-First Small Businesses
Running a business in India today goes far beyond having a physical storefront. While 36% of small businesses still operate primarily from a physical location, 17% now run their business through a dedicated website, and another 21% operate mainly on social media.
Sales channels also reflect this digital evolution. While 37% still sell in person, 19% use online stores or marketplaces, and 29% sell directly through social platforms.
This blend of physical and digital approaches demonstrates how Indian small businesses are meeting customers where they are—online, in-store, or both. The ability to combine these channels shows agility and a strong understanding of shifting consumer preferences.
Social Media: Essential but Challenging
Social media plays a central role in how India’s small businesses operate and grow. Nearly 83% of entrepreneurs say it’s important to their sales strategy, and 47% call it “very important.” It’s also become a top learning resource: 62% of respondents turn to social media for business insights, ahead of books, blogs (44%), and even AI tools like ChatGPT (44%).
However, challenges persist. About 30% say they struggle to create engaging content, while 39% cite a lack of time to post regularly. Even when content is shared, it doesn’t always lead to sales—56% struggle to reach the right audience, and 46% say they find it hard to convert followers into customers.
These hurdles show that while social media is indispensable, it’s not easy. Entrepreneurs are calling for smarter tools and real support to translate digital activity into actual business growth.
The Push for AI and Smarter Digital Tools
Many Indian entrepreneurs have a clear idea of what would help. Around 63% want better tools to reach the right audience, while 46% seek easier ways to create and schedule content—pointing to a strong demand for time-saving, practical solutions.
AI is beginning to make a difference. Entrepreneurs who already use AI are more likely to seek insights into performance (38% vs. 28% of non-AI users) and more interested in tools like caption-writing tips and ad templates (37% vs. 29%). This shows that small businesses aren’t just experimenting—they’re actively looking for AI tools that are smart, focused, and results-driven.
“Indian entrepreneurs are digital-first and increasingly tech-savvy. While they are already leveraging social media to connect with customers, the next leap in growth will come from adopting smart AI tools that simplify marketing and enhance reach,” said Apurva Palnitkar, Senior Director of Marketing, GoDaddy India. “At GoDaddy, we’re focused on providing intuitive, AI-powered solutions like Show In Bio that empower small businesses to do more with less, saving time while driving meaningful results.”
The Opportunity Ahead
As more small businesses in India shift online, the need for effective tools, automation, and content solutions is only growing. GoDaddy aims to support this transformation with easy-to-use tools like Show In Bio, GoDaddy Studio, and GoDaddy Airo—helping entrepreneurs convert engagement into real, scalable results.