Barriers in the Adoption of Digital Marketing Initiatives by Small Businesses in the City of São Paulo/sp

Fabiana Rizzi; Gisela Consolmagno Pelegrini

DOI: 10.22167/2675-6528-202602884

Article derived from a Final Course Work (TCC), with content based on the student’s original work and adapted to the editorial format of the E&S Magazine with the support of the ResumeAI tool, an artificial intelligence solution developed by Instituto Pecege for textual synthesis and organization.

Abstract

Small businesses in the city of São Paulo face strategic and marketing challenges that contribute to their high mortality rate, despite the digital environment democratizing access to marketing tools. This study aimed to identify the perceived barriers to the adoption of digital marketing initiatives by these businesses. An exploratory quantitative survey was conducted with 52 managers of small businesses in São Paulo, using a structured online questionnaire. The results revealed that, although 96% of managers recognized the importance of digital marketing, a significant portion (36%) expressed doubts or difficulties in its effective adoption, highlighting operational and technical barriers. The predominance of self-management of digital initiatives and a difficulty in establishing the cause-and-effect relationship between digital marketing actions and the results obtained were observed. Lack of time was the main reason for the non-use of digital marketing among respondents who had not yet adopted it. It was concluded that there is a divergence between the recognition of the importance of digital marketing and its practical implementation, pointing to the need to develop digital services more aligned with the reality of small businesses, focusing on training, continuous support, and simplified solutions to optimize the consumer journey.

Keywords: Digital barriers; Digital journey; Digital marketing; Digital business; Small businesses.

1. Introduction

The city of São Paulo, one of Brazil’s largest economic centers, is home to over two million active micro and small businesses, representing more than 95% of the total businesses established in the region. Despite their relevance for job and income generation, a considerable portion of these ventures fail to thrive, with an accumulated mortality rate of approximately 62% in five years in the state of São Paulo (MDIC, 2024; IBGE, 2024).

The factors that most contribute to the premature mortality of these small businesses are predominantly strategic in nature, with an emphasis on commercial and marketing challenges. The difficulty in acquiring and maintaining a client portfolio, the adoption of inadequate competitive strategies, and limited differentiation capacity are pointed out as crucial reasons for this reality (Ferreira et al., 2012; SEBRAE, 2014).

In this context, the digital environment has emerged as a transformative element, democratizing access to marketing tools and consolidating itself as one of the main instruments for acquiring new customers. Digital marketing allows for more refined target audience segmentation and offers high measurability, enabling small entrepreneurs to position their brands in specific market niches (Ryan, 2016). Direct consumer interaction with companies and brands through multiple digital channels expands engagement opportunities and reduces dependence on substantial investments in traditional media (Kotler et al., 2017).

However, despite the wide arsenal of digital tools available, which democratize the use of technology and allow small businesses to access resources previously restricted to large corporations, the effective adoption and full utilization of these possibilities represent a significant challenge for managers. Marketing in small businesses is often characterized by informality, simplicity, and disorganization, resulting from the small size of the company, the strong influence of the entrepreneur, and the absence of formal organizational structures (Jones and Rowley, 2011).

The resistance of small business managers to structured marketing planning, which tends to value improvisation over an integrated strategic approach, reveals a barrier of a cultural and educational nature (Rodrigues, 2025). This predominance of management based on practical, direct customer experience, although common, can limit long-term business growth and consolidation, restricting learning to isolated and non-replicable experiences (Rodrigues, 2025). Additionally, the difficulty in understanding results measurement and the perception of financial risk are significant obstacles to the consistent adoption of digital strategies (Alford and Page, 2015; SEBRAE, 2014).

Despite the inherent difficulties, academic literature highlights that the adoption of digital marketing strategies can represent an essential competitive advantage for the growth and sustainability of small businesses in an increasingly digital and dynamic business environment (Kotler et al., 2017). Given this issue, this study aims to identify the perceived barriers to adopting digital marketing initiatives by small businesses in the city of São Paulo, and, based on this understanding, to provide some recommendations for the design of future digital services aimed at this audience.

2. Material and Methods

The present study was characterized as a quantitative research of an exploratory nature, designed as a survey field study. This approach was selected to investigate the perceived barriers in the adoption of digital marketing initiatives by small businesses in the city of São Paulo, according to the established general objective. The methodology employed sought to collect data in a structured manner, allowing for a comprehensive understanding of managers’ perceptions.

For data collection, a structured online questionnaire was used, specifically developed for this research. The instrument was elaborated based on the methodological guidelines of Gil (2017) and the author’s prior experience in the field. The questionnaire addressed variables such as the degree of importance of digital marketing, the perception of its effectiveness, managers’ technical knowledge, understanding of metrics, available budget, time dedicated, and preferred initiatives.

The questionnaire consisted of nine closed-ended questions. The last question allowed the selection of up to three response alternatives, while the others were single-choice. To optimize the relevance of the collected information, a conditional logic was employed that directed respondents to different question blocks, depending on their previous answers, ensuring the pertinence of the questions presented.

The questionnaire application occurred anonymously, through the Google Forms platform. The Free and Informed Consent Form (TCLE) was presented to the participants in the first question of the form, and their acceptance was a condition to proceed with the research. This measure ensured voluntariness and ethics in the managers’ participation.

The study’s target population consisted of managers of small businesses active in the city of São Paulo, operating in various sectors, including service provision, trade and retail, food and beverages, production and manufacturing, as well as liberal professionals and self-employed individuals. The selection of these participants was carried out by non-probabilistic sampling, of the judgment type.

Judgment sampling was adopted due to the difficulty of listing the complete population and the need to select respondents who fit the specific criteria defined for the study. A minimum target N of fifty respondents was sought, aiming for practicality and adequacy to the research objectives, focusing on managers with relevant experience in the subject.

Participant recruitment was conducted through contacts and networking of the study author. The link to access the online questionnaire was distributed directly to potential respondents via WhatsApp, ensuring that the invited individuals matched the desired profile. Approximately seventy invitations were sent for participation in the research.

Data collection was carried out during the months of November and December 2025. At the end of the collection period, a total of fifty-two valid responses were obtained. The absence of duplicate response control, inherent to the anonymous nature of the questionnaire and the non-collection of personal data, was recognized as a limitation of the collection procedure.

The questionnaire was not pre-tested before its application. This decision was made due to the exploratory nature of the research and the direct formulation of the questions, aligned with the proposed objectives. However, the absence of a pre-test was identified as a methodological limitation, as it could have helped in identifying possible ambiguities or comprehension difficulties.

The analysis of the collected data was essentially descriptive. The results were organized to present managers’ perceptions of the barriers to adopting digital marketing, without delving into inferential statistical analyses. Judgmental sampling implied that the generalization of the results should be treated with caution, restricting the conclusions to the studied set.

Regarding the ethical aspects, the study was conducted in a way that preserves the privacy and anonymity of the participants. The work was exempted from registration with the Research Ethics Committee (CEP), considering its public nature and the anonymous nature of data collection, which did not involve sensitive or identifiable information from the respondents.

3. Results and Discussion

The research revealed a widespread perception of the importance of digital marketing among managers of small businesses in the city of São Paulo, although this awareness does not always translate into effective adoption. Of the 52 respondents, 96% recognized the potential of digital marketing to boost their businesses. Specifically, 31 managers considered it vital for growth, while 14 judged it important but with doubts about its effectiveness, and 5 considered it important but with implementation difficulties. Only 2 managers do not believe that digital marketing can contribute, preferring other means of promotion. This scenario suggests a misalignment between the perception of importance and the capacity for implementation, a central point that the research sought to explore.

The divergence between the recognition of importance and effective adoption is a crucial finding. Although most managers have a positive view of digital marketing, 36% expressed doubts or difficulties in its practical implementation. This phenomenon is widely discussed in the literature, which points to the limited practical application of marketing in small businesses, especially due to resource constraints and low strategic formalization (Pompeu and Carvalho, 2020). The data reinforce that the challenge lies not in the lack of recognition of the value of digital marketing, but rather in the difficulty of incorporating consistent and continuous strategic practices into the daily routine of these businesses.

Regarding the use of digital marketing initiatives, more than 80% of the 52 respondents stated that they already use or have used these tools, while 19% declared they do not use them. This data corroborates the broad awareness of the relevance of digital marketing and the willingness of the majority to explore it. However, the approximately 20% portion that has not yet adopted these initiatives suggests the existence of significant obstacles that prevent the transformation of positive perception into concrete action, even in the face of the vast diffusion of digital tools and the predominant discourse on their importance.

The way digital marketing is managed in small businesses is predominantly autonomous. Among the 42 participants who use or have used digital marketing, 15 managers (35.7%) personally handle or have handled the initiatives, learning through tutorials or courses. Another 12 (28.6%) hired marketing agencies, 11 (26.2%) resorted to freelancers, and only 4 (9.5%) have a dedicated employee. This centralization of strategic functions in the figure of the manager themselves is a characteristic pattern of small businesses, as pointed out by Valença (2021), who highlights the strong dependence on the owner for management.

The predominance of self-management, although it demonstrates initiative and interest, does not always guarantee the technical mastery necessary for the effective execution and measurement of digital marketing actions. This scenario can limit the effectiveness of strategies and lead to incorrect perceptions about the results obtained. The literature, such as the article by Rodrigues (2025), shows that management based on practical and direct experience with the client, common among small entrepreneurs, tends to restrict learning to isolated and non-scalable experiences, compromising the consolidation of more consistent practices.

The hiring of agencies and freelancers, which together represent a significant portion of the responses (54.8%), indicates the recognition of the need for specialized support. However, the difference between these formats is notable: agencies offer a broader and more integrated strategic vision, while freelancers can be more accessible, but punctual solutions. The low number of companies with dedicated internal professionals suggests that digital marketing is not yet widely perceived as a permanent strategic function within the organizational structure, often being treated in a punctual or experimental manner.

The analysis of the results obtained with digital marketing initiatives revealed a significant difficulty in establishing the cause-and-effect relationship. Of the 42 managers who use or have used digital marketing, 23 (54.8%) stated that new clients emerged, but they could not say if it was directly due to digital marketing. In contrast, 12 managers (28.6%) reported clear positive results, with growth in the number of clients. Another 6 (14.3%) did not perceive an increase in clients, but acknowledged possible flaws in the strategy, and 1 manager (2.4%) did not obtain positive results.

This difficulty in linking digital marketing actions to the results obtained compromises the perception of effectiveness and hinders decisions on the continuity or adjustment of strategies. The absence of clear metrics, such as number of accesses, clicks, customer acquisition cost, or conversion rate, transforms the evaluation of return on investment into a subjective perception, rather than an objective analysis. Studies such as Freitas et al. (2025) corroborate that, despite digital marketing offering high measurement capacity, its effectiveness depends on technical mastery for indicator analysis, a common limitation in small businesses.

For the group of 10 respondents who do not yet use digital marketing, the main barrier identified was lack of time, indicated by 7 managers (70%). Another 2 (20%) prefer other forms of promotion, such as customer referrals, and 1 (10%) is afraid to invest without being able to measure results. The predominance of lack of time as a justification highlights a typical structural limitation of small businesses, where the manager accumulates multiple operational, administrative, and commercial functions (Valença, 2021). In this context, digital marketing is often perceived as an additional activity that competes with more urgent demands.

The appreciation of traditional acquisition channels, such as word-of-mouth, by some managers who do not use digital marketing, suggests the maintenance of business models sustained by relationship networks, especially in local markets. This behavior, although effective in specific niches, can limit the potential for customer base expansion. The perception of financial risk, associated with the fear of investing without measurable return, also manifests as an impediment, an obstacle already evidenced in previous SEBRAE (2014) studies on the success and failure of companies in their first five years.

When asked what would make them reconsider and adopt digital marketing services, 9 out of 10 managers who do not use them showed openness, provided certain conditions were met. Three managers (30%) would hire an agency or freelancer if they had money. Two (20%) would use it if there were a simple, fast, cheap, and efficient service. Another two (20%) would learn and do it themselves if they had time, and two (20%) would hire a specialized employee if they had resources. Only 1 manager (10%) stated that they would not use this type of service under any circumstances, preferring customer referrals.

These results reinforce that resistance to adoption is not ideological, but rather conditioned by practical factors such as specialized support, simplification of services, and reduction of perceived risk. The demand for simple and accessible services points to a gap between the traditional digital marketing offer, often perceived as complex or expensive, and the practical needs of small businesses. Low digital literacy and the absence of strategic planning and training are significant obstacles, as highlighted by Freitas et al. (2025), which prevent the full use of digital tools.

In an overview of digital marketing services, 25 managers (48.1%) perceive growth and see digital marketing as relevant support. Twelve (23.1%) have difficulty attracting clients and consider hiring services. Eight (15.4%) find the services expensive, 4 (7.7%) state they do not have time to dedicate to the topic, and 3 (5.8%) prefer to study to apply it themselves. The predominance of positive responses and openness to digital solutions reinforce the perceived importance, but sensitivity to the price factor and difficulty in measuring returns continue to be significant barriers, amplifying the sense of investment risk.

When indicating the most important types of digital marketing services for their businesses, managers prioritized the creation of social media profiles and posts (71.2%, 37 responses), Google My Business presence (51.9%, 27 responses), and paid traffic services (42.3%, 22 responses). Google Ads (34.6%, 18 responses) and websites or e-commerce (32.7%, 17 responses) appeared next. Analytics and metrics tools (11.5%, 6 responses) and email marketing or WhatsApp blasts (11.5%, 6 responses) were the least cited. This indicates a priority for services associated with visibility and immediate customer attraction.

The preference for social media and Google My Business signals the perception that these channels are accessible, low-cost, and offer organic reach, being central for promotion and relationship building, especially for local businesses. Paid traffic, although recognized as a growth accelerator, appears behind organic channels, suggesting cautious behavior regarding investment, possibly due to budgetary constraints or uncertainties about results. Services requiring medium and long-term digital implementation, such as websites or e-commerce, occupy an intermediate position, being recognized as important but not prioritized over more immediate initiatives.

The low incidence of choices for analysis and metrics and email marketing or WhatsApp offers reinforces the difficulty in measurement, already identified in previous analyses. The mention of artificial intelligence for customer service (21.2%, 11 responses) suggests an openness to automation and a recognition of AI’s potential for efficiency gains, which can reduce the manager’s workload. The results, in general, show an orientation towards the top of the marketing funnel, focusing on visibility, indicating the need for educational content that broadens the understanding of digital marketing as a more comprehensive and integrated strategy, capable of acting at different moments of the consumer journey, and not just as a set of specific promotional tools.

Based on the identified barriers, recommendations were developed for the creation of digital services more aligned with the reality of small businesses. For self-management and owner dependence, it is suggested to develop services with educational content about the strategic importance of digital marketing and how it can be integrated into the organizational structure. It is essential to demonstrate, through cases and results, the effectiveness of digital initiatives executed by specialists or agencies, and to structure service models that include practical guidance, continuous support, and assisted execution, reducing the manager’s dependence.

Regarding the manager’s lack of time, recommendations include the development of services that operate with minimal time demand, using artificial intelligence for activity optimization such as automated content generation, customer support assistance, customer segmentation, and results analysis. Prioritizing service packages with predictable and planned routines is crucial to reduce the need for frequent decisions by the manager, freeing up time for other essential business functions.

Due to the lack of technical knowledge and low understanding of the digital consumer journey, it is proposed to incorporate a structured educational journey into the services, with simplified content, practical tutorials, and a guided onboarding process. It is vital to teach about defining objectives and success indicators, such as website visits, reach, engagement rate, new user volume, click-through rate, conversion rate, revenue, and return on advertising spend (ROAS). The educational content should also address the multiplicity of digital touchpoints and the dynamic nature of the consumer journey, integrating different channels coherently and oriented towards the continuous presence of the business, offering continuous technical support to clarify doubts.

Difficulties in measuring results can be mitigated by offering simplified measurement tools and highly intuitive dashboards, easily pluggable to the business’s website or social media profile. These dashboards should present clear indicators and objective reports that highlight the relationship between actions and results. Furthermore, they should include continuous AI-generated insights on actions to be taken when indicators show low effectiveness, promoting gradual learning and expanding the manager’s capacity to incorporate digital tools.

The perception of expensive services and the aversion to the risk of investing without return can be addressed by demonstrating the efficiency of digital marketing actions, relating investment and return through educational content. It is important to consider offering low-cost entry-level services, initial and free trial options, allowing for gradual validation and evolution before more robust investments. This approach aims to reduce the financial barrier and the sense of risk, encouraging experimentation and progressive adoption of digital marketing by small businesses.

In summary, the research results show that, although managers of small businesses in São Paulo recognize the importance of digital marketing, its full adoption is hindered by operational, technical, and financial barriers, such as lack of time, difficulty in measuring results, and cost perception. The predominance of self-management and the prioritization of immediate visibility channels reveal the need for solutions that offer training, continuous support, process simplification, and flexible and accessible service models, which integrate the understanding of the consumer journey and the strategic use of artificial intelligence to optimize the digital presence and growth of these ventures.

4. Conclusion

This study aimed to identify the perceived barriers in adopting digital marketing initiatives by small businesses in the city of São Paulo, seeking, from this understanding, to offer recommendations for the design of future digital services. It was found that, although most managers recognized the importance of digital marketing for the growth of their businesses, a significant portion expressed doubts or difficulties in its practical implementation, revealing operational and technical barriers. The predominance of self-management of digital initiatives and a notable difficulty in establishing the cause-and-effect relationship between digital marketing actions and the results obtained were observed. Lack of time was identified as the main reason for the non-use of digital marketing among managers who had not yet adopted it. These findings highlight a gap between the perception of value and the execution capacity, pointing to the need for solutions that simplify management and measurement. The study’s main contribution lies in the development of a set of practical recommendations for the development of digital services more aligned with the reality of these ventures, focusing on training, continuous support, and optimization of the customer journey.

The proposed recommendations include the development of services that operate with minimal manager time demand, using artificial intelligence for activity optimization, and the incorporation of a structured educational journey that teaches about success objectives and indicators. The offering of simplified measurement tools and intuitive dashboards, capable of highlighting the relationship between actions and results, in addition to AI-generated insights, is suggested. To mitigate the perception of expensive services and risk aversion, the offering of low-cost entry services and initial testing options is proposed. However, the study has limitations, such as the sample being restricted to 52 respondents in the city of São Paulo and the dependence on managers’ perception, which may limit the generalization of the results. For future studies, it is suggested to expand the sample, explore comparisons between different regions or sectors, and investigate the relationship between the adoption of digital marketing and actual business performance, as well as evaluate the effectiveness of the presented recommendations.

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Article originating from the Final Course Work of Specialization in Digital Business from the MBA USP/Esalq

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