GoDaddy, the company that helps entrepreneurs thrive, released the survey findings from its GoDaddy 2023 Data Observatory. The GoDaddy survey studies the current state of small businesses internationally, including India, with the first set of results focused on how entrepreneurs and small business owners run their businesses.
Globally, 46% of small businesses surveyed reported launching in the last 1-5 years, with India recording 55% of small businesses in the same period. The survey indicates that 83% of Indian small businesses started selling online in the past 5 years. Indian small businesses are also most active in starting their business online with actions that include building social media profiles (35%), online advertising (34%), and personal contact with potential customers (33%).
GoDaddy’s Data Observatory finds the importance of having an online presence is embraced by entrepreneurs. Globally 64% of small business owners surveyed said they make up to half of their annual revenue from online sales channels, and 37% reported making 51-100% of their revenue from online sales channels. And 61% globally reported using a website or online store or a combination as their sales channel. In India, 65% of respondents said they make up to half of their revenue from online sales, and the other 36% of respondents make over 50% of their revenue from online sales.
The research survey found the use of e-commerce is closely followed by social media (58% globally), revealing a strong online presence with tools that complement each other is highly important for businesses to thrive online. Additionally, India leads in using an online marketplace as a potential channel more than any other country surveyed with 34% of small businesses using it to do business in comparison with countries like Mexico (16%), Spain (20%), Colombia (14%) amongst others.
When it comes to keeping their momentum going, 66% of global businesses surveyed said it is very important for them to raise awareness, calling out advertising on social media, having a business website, and conducting online non-paid marketing strategies as their top three choices. For 34% of small businesses in India, having a business website is a top activity to raise brand awareness along with online advertising (36%) and advertising on social media (46%). Also, phone is a more used sales channel than in many other countries surveyed with 46% of Indians saying they are using it for trade. GenX (40-54y) are significantly more likely than GenZ (18-24y) to use the phone: 64% vs. 34%.
“The survey results showcase that small businesses in India recognize the value of taking advantage of online tools for enhanced growth opportunities for sales. A robust online presence with tools that complement each other to work together is essential for gaining a competitive edge in today’s ever-evolving online marketplace. GoDaddy is committed to empowering small businesses in India through its comprehensive suite of offerings and digital solutions, along with expert customer care to help entrepreneurs reach a wider audience, boost their online visibility, and drive growth,” said Apurva Planitkar, Senior Marketing Director for GoDaddy India.
The GoDaddy Data Observatory was conducted by Advanis in March 2023 in Brazil, Colombia, Germany, India, Mexico, Philippines, Singapore, Spain, Thailand, and the United States. The sample criteria were small business owners, and companies were defined based on the number of employees, ranging from one to 50 people. For this study, a total of 4,682 entrepreneurs and small business owners were surveyed, including 569 from India.