Consider a fashion designer who takes orders by phone and collects payment in cash. Orders get missed and customers outside her area cannot find her. With a smartphone, she can show her designs on Instagram, confirm orders on WhatsApp and send payment links. Her skills are the same, but more customers can reach her and pay her easily.
Her story is not unusual. Fashion designers, food vendors, artisans, provision store owners and service providers all face the same daily questions: how to reach more customers, keep costs under control and grow. Everyday digital tools can help with many of these tasks: social media pages such as Instagram or Facebook to showcase products, WhatsApp Business to manage orders and enquiries, payment links or POS terminals to receive payments, and a simple spreadsheet to track sales and expenses.
The Organisation for Economic Co-operation and Development (OECD), in The Digital Transformation of SMEs (2021), notes that digitalisation can improve productivity, innovation and access to customers and markets. It also makes clear that technology alone is not enough; businesses need the right conditions and skills to benefit.
Here are five practical ways digital tools can support small business growth.
1. Reach More Customers Online
Not long ago, most small businesses depended on people living or passing nearby. Today, social media platforms such as Instagram, Facebook and TikTok, business listings such as Google Business Profile, and online marketplaces such as Jumia, Konga and Jiji let entrepreneurs show their products and services to a much wider audience.
A fashion designer can post photos of finished outfits on Instagram so that people beyond her neighbourhood see her work. A food vendor can share a menu and take orders on WhatsApp, while a craft maker can list items on an online marketplace and find buyers in other towns or cities.
This kind of visibility does not always require a physical shop or a large advertising budget. But being online is only the first step. Customers need clear product details, good photos, prompt replies and reliable service before they feel confident enough to buy.
2. Make Payments Easier
Digital payment tools make it simpler for businesses to get paid and for customers to complete a purchase. Depending on what is available to them, entrepreneurs can use bank transfers, payment links from platforms such as Paystack or Flutterwave, point-of-sale (POS) terminals from providers such as Moniepoint, and mobile wallets such as OPay or PalmPay.
These options can reduce the need to handle cash and make it easier to serve customers who prefer to pay digitally. A business owner can, for example, send a payment link or account details to a customer ordering from another city, so the customer does not have to visit the shop.
Before choosing a payment service, be sure to compare its transaction charges, settlement times and security features. Always confirm payments through your bank or payment provider, and do not rely only on screenshots sent by customers.
3. Keep Better Records
Good decisions depend on knowing your numbers: what you sold, what you spent, what is in stock and what customers have ordered. When this information lives only in memory or on loose sheets of paper, it is easy to lose.
A simple spreadsheet in Google Sheets or Microsoft Excel can help an owner log daily sales, track expenses, monitor stock and estimate profit. Accounting apps such as Zoho Books or QuickBooks can also help with invoicing and reports as the business grows.
Consider a provision store owner who records daily sales and purchases. Over time, the records show which items sell fastest, which expenses look unusual and when it is time to restock.
You do not need expensive software to start. A simple record that is updated regularly is more useful than an advanced tool that nobody in the business knows how to use.
4. Build Stronger Customer Relationships
Customers tend to return to, and recommend, businesses that are easy to reach and quick to respond. Digital tools make it easier to answer questions, share updates and keep people informed.
WhatsApp Business, for instance, offers business profiles, product catalogues, quick replies and labels for organising conversations. Email newsletters (for example, through Mailchimp) and social media pages can also be used to announce new products, promotions or changes in opening hours.
A fashion designer can message a customer when an outfit is ready. A small bakery can share its weekend menu in advance. When handled professionally, these small gestures save customers time and build trust.
Respect customers’ privacy, avoid sending messages they have not asked for, and respond to complaints quickly.
5. Discover New Markets and Opportunities
The internet helps entrepreneurs learn about the world beyond their immediate surroundings. Through Google searches, industry groups on Facebook or WhatsApp, professional networks such as LinkedIn, and supplier marketplaces such as Jumia and Konga, business owners can study customer preferences, compare prices, find suppliers and look for partners.
A farmer might look up storage methods or current market prices. A graphic designer might find clients in other cities or countries.
The OECD also points to online platforms and digital technologies as ways for small businesses to widen their reach and compete more effectively.
Still, every opportunity deserves a careful look. Check out unfamiliar suppliers, read the terms of any online marketplace, and be wary of offers that ask for upfront payment without proof that they are genuine.
Digital Tools Help, but Access and Skills Matter
Not every business benefits equally. The OECD points to limited funds, weak digital skills, low awareness and poor infrastructure as barriers for small firms, and the World Bank’s Digital Progress and Trends Report 2023 notes that small firms in lower-income economies invest less in digital solutions.
Connectivity is a particular concern in Nigeria. The GSMA’s The State of Mobile Internet Connectivity 2026 estimates that about 140 million Nigerians lived within mobile broadband coverage in 2025 but did not use mobile internet, up from about 120 million in 2023. The cost of internet-enabled devices and limited digital skills are among the barriers.
Network coverage nearby does not guarantee access. People need affordable access, confident skills and awareness of online safety before digital tools can improve their livelihoods.
Why Digital Inclusion Matters for Small Businesses
Digital inclusion means people can access and meaningfully use digital technology. Initiative for Digital Inclusion (IDI) tackles barriers in connectivity, affordability, skills and accessibility through research, advocacy, capacity building and digital rights initiatives.
Through the Digital Access Programme (DAP), sponsored by the United Kingdom Government’s Foreign, Commonwealth & Development Office (FCDO), IDI supports self-built connectivity hubs that give underserved Nigerian residents, including aspiring and existing entrepreneurs, internet access and digital skills. IDI also engages on policy, regulatory and institutional reforms for meaningful digital participation.
Connectivity alone cannot guarantee growth, but it gives people a place to learn and try tools that support their livelihoods.
Protect Your Business Online
The more connected a business becomes, the more important it is to protect its accounts and its customers’ information.
A few practical habits go a long way:
- Use strong, unique passwords.
- Turn on two-factor authentication wherever it is offered.
- Check suspicious messages and links before clicking.
- Limit who can access sensitive business information.
- Be careful when sharing customers’ personal details, and choose digital services that suit your needs.
Growing online is not only about reaching more customers. It is also about earning their trust and using technology responsibly.
Conclusion
Digital tools provide small businesses with practical ways to find customers, receive payments, keep records, stay in touch and spot new opportunities. Entrepreneurs do not need to adopt everything at once; starting with a few affordable tools and building the skills to use them well is a sensible approach.
To share these benefits widely, reliable connectivity, digital skills and a safe online environment must reach more people, so that everyone can use the internet with confidence to improve their daily lives and incomes.
Image credit: Shutterstock
References
1. Organisation for Economic Co-operation and Development (OECD). (2021). The Digital Transformation of SMEs. OECD Publishing.
2. World Bank. (2023). Digital Progress and Trends Report 2023. World Bank Group.Â
3. GSM Association (GSMA). (2026). The State of Mobile Internet Connectivity 2026. GSMA.