Small Brazilian companies embrace social media, but may be missing out in the AI era

According to the GoDaddy 2025 Global Entrepreneurship Survey, almost half of small companies in Brazil now operate mainly online, using websites, marketplaces or social networks to sell. This shows a clear change as entrepreneurs adopt digital channels to reach customers, increase sales and remain competitive in the current market.

The rise of small businesses that prioritize digital

Today, running a company in Brazil means going beyond a physical store. While 28% of small businesses still work mainly in a physical location, almost a third (32%) operate mainly on social networks. Another 12% now run their businesses preferentially through their own website.

Sales channels also reflect this change. Although 26% sells in person, 14% uses online stores or marketplaces and 43% sell directly through social media.

This combination of physical and digital approaches shows that small Brazilian companies are finding new ways to serve customers, whether in the store, online or on social media. The ability to combine different methods indicates a significant evolution in the ability of companies to adapt to the needs and preferences of customers.

Social networks: a fundamental tool with real challenges

Social networks play an important role in the way small companies in Brazil operate and grow: 90% of entrepreneurs say they are important for their sales strategy, and almost two out of three (70%) say they are very important. They also became the main place to learn about running a business: 59% turn to social media for insights, at the forefront of traditional educational resources such as books and blogs (40%), and even artificial intelligence tools such as chatGPT (37%).

But although the value is clear, so are the challenges. When it comes to managing their presence on social media, many entrepreneurs have difficulty with content: 38% state that it is difficult to have interesting ideas to post, and another 31% does not have enough time to create and post regularly. Even when content is shared, converting sales engagement remains difficult: 59% claim to have difficulty converting followers into customers, and 65% fails to reach the right audience.

These obstacles show that while social networks are essential, they are not easy. Entrepreneurs need smarter tools and support to transform digital activity into real business growth.

The need for smarter tools and AI support

As Brazilian entrepreneurs become digital, many know exactly what would help them sell on social media. Two-thirds (67%) claim that they need better ways to reach the right audience, and nearly half (45%) want simpler tools to create and publish content, highlighting a clear demand for practical solutions that save time.

AI is starting to play an important role, especially among proactive entrepreneurs. Those who already use AI are more likely to want deeper insights into what is working (40% against 25% of users who do not use AI), but are close in terms of interest in tips and models for writing subtitles and ads (28% against 29% for users who do not use AI). These preferences suggest that small businesses are not just experimenting with AI, but looking for intelligent and focused support that saves time and delivers results.

“At Godaddy, we realize the great potential of entrepreneurs and understand how difficult it is to transform online efforts into real growth,” said Luiz D’Elboux, country manager at Godaddy in Brazil. “That's why we focus on offering smart and easy tools, like show in bio, which can help transform social engagement into real sales without adding more work.”

The opportunity ahead

As more small companies in Brazil migrate to the online world, the need for effective tools and support continues to grow. Godaddy is committed to helping entrepreneurs succeed with easy-to-use solutions such as Show in Bio, Godaddy Studio and godaddy airo®, all designed to simplify digital marketing and transform engagement into real results