Small Businesses Embrace Social-- But Could be Missing a Trick in the Age of AI

New GoDaddy data reveals how entrepreneurs learn, sell, and grow in a digital world.

ISLAMABAD, July 7, 2025 /PRNewswire/ -- According to the GoDaddy 2025 Global Entrepreneurship Survey, nearly half of small businesses in now primarily operate online, using websites, marketplaces, or social media to sell. This shows a clear shift as entrepreneurs embrace digital channels to reach customers, grow sales, and stay competitive in today's market.

Social Media: A Key Tool with Real Challenges
Social media plays a major role in how small businesses operate and grow. 80% of entrepreneurs say it's important to their sales strategy, and half (50%) say it's very important. It has also become the top place to learn about running a business: 59% turn to social media for insights, ahead of traditional educational resources like books and blogs (40%), and artificial intelligence tools like ChatGPT (37%).

But while the value is clear, so are the challenges. When it comes to managing their social media presence, many entrepreneurs struggle with content. 37% say it's hard to come up with engaging ideas for posts, and another 33% don't have enough time to create and post regularly. Even when content is shared, converting engagement into sales remains difficult—51% say they have trouble converting followers into customers, and 54% can't reach the right audience.

"At GoDaddy, we realize how much potential entrepreneurs have—and we also understand how hard it is to turn online effort into real growth," said Selina Bieber, Vice President of International Markets at GoDaddy. "That's why we're focused on giving them smart, easy tools like Show in Bio that can help turn social engagement into actual sales, without adding more work."

These hurdles show that while social media is essential, it's not easy. Entrepreneurs need smarter tools and support to turn digital activity into real business growth.

The Rise of Digital-First Small Businesses
Running a business today means going beyond a physical store. While 31% of small businesses still work mainly from a physical location, the online world is catching up with 19% now run their business primarily through their own website. Another 28% operate mostly on social media.

Sales channels also reflect this shift. Though 36% sell in person, 18% use online stores or marketplaces, and another 31% sell directly through social media.

This mix of physical and digital approaches shows that small businesses are finding new ways to meet customers—whether in-store, online, or on social media. The ability to combine different methods indicates a significant evolution in business' ability to adapt to customers' needs and preferences.

The Need for Smarter Tools and AI Support
As entrepreneurs go digital, many know exactly what would help them sell on social. More than half (59%) say they need better ways to reach the right audience, almost half (48%) want simpler tools for creating and posting content, and over a third (39%) want insights into what is working and is not, highlighting a clear demand for practical, time-saving solutions.

The Opportunity Ahead
As more small businesses move online, the need for effective tools and support continues to grow. GoDaddy is committed to helping entrepreneurs succeed with easy-to-use solutions like Show in Bio, GoDaddy Studio, and GoDaddy Airo® all designed to simplify digital marketing and turn engagement into real results.

About GoDaddy 

GoDaddy helps millions of entrepreneurs globally start and scale their businesses. People come to GoDaddy to name their idea, build a website and logo, sell their products and services, and accept payments. GoDaddy Airo®, the company's AI-powered experience, makes growing a small business faster and easier by helping them to get their idea online in minutes, drive traffic and boost sales. GoDaddy's expert guides are available 24/7 to provide assistance. To learn more about the company, visit www.GoDaddy.com.