Everything You Need to Make Your site Sizzle
Everything You Need to Make Your Website Sizzle

5 Reasons Why Small Business Websites are Dead

20 years ago, small business websites were king of the hill. Every business wanted one, but that’s no longer true.

In the early 2000s, small businesses such as bakeries, plumbers, and boutique shops needed small business websites to establish their online presence.

To obtain their website, these business owners hired web designers or developers. This was a specialised skill, often commanding tasty fees for custom builds.

Fast forward to 2025, and everything has changed.

The profession of building small business websites is on life support, edged out by technology, market shifts, and the post-lockdown economic slump.

What was once a thriving freelance niche is now a relic, like repairing typewriters in the age of computers. Let’s take a look at what happened to small business web design.

There's no future in designing small business websites.

No-code and Low-code Platforms

Gone are the days when small business owners had to shell out thousands for a basic site. Platforms like Wix, Squarespace, and Shopify have democratised web creation, allowing anyone with minimal tech savvy to build a professional-looking site in hours, not weeks.

These tools offer drag-and-drop interfaces, pre-built templates, and integrated e-commerce features that cover 90% of what many businesses need. High-quality templates and mature design patterns have made custom coding obsolete for small business websites.

A small business owner no longer sees the value in paying a freelancer thousands of dollars for something they can achieve themselves for $20 a month. In fact, website builders have flooded the market to the point where even freelancers admit they’re making services obsolete.

The logic is unasailable, isn’t it? Why would people hire web designers to work on their small business websites when an inexpensive template will do the job faster and cheaper?

This shift isn’t just anecdotal. Market data shows that conventional websites are declining as businesses pivot to web apps and no-code solutions.

For small operations, a Squarespace site with built-in SEO and mobile optimisation suffices, leaving traditional web builders out in the cold.

AI Automation: The final nail...

Artificial intelligence has accelerated the decline of the freelance web designer. Tools like AI-powered site generators on platforms like Wix or ADI, or standalone AI such as ChatGPT, can create entire websites based on simple prompts.

Automation handles layout, content suggestions, and even basic SEO tasks that once required human expertise. Articles from as far back as 2015 predicted this, and in 2025, this is the new reality. AI, combined with mobile tech, signals the end of small business web design as we knew it.

Freelancers specialising in small business websites are particularly vulnerable because AI excels at the straightforward, template-like work they do. Complex enterprise sites may still need coders, but for a local coffee shop?

Here are ten ways that AI can help non-technical people build a website...

  1. AI-Powered Website Builders
    Tools like Wix ADI or Hostinger AI Website Builder can generate a complete website layout based on simple user inputs, such as describing your business or uploading a few details, no coding required.
  2. Content Generation
    AI chatbots like Grok or ChatGPT can write website copy, including homepage text, blog posts, product descriptions, or about pages, tailored to your tone and audience.
  3. Image and Graphic Creation
    AI image generators such as DALL-E or Canva's Magic Studio can create custom visuals, logos, banners, or icons from text descriptions, eliminating the need to pay stock photo libraries or web designers.
  4. Design Suggestions and Customisation
    AI features in platforms like Squarespace or Elementor AI can recommend colour schemes, fonts, layouts, and templates that match your brand, with drag-and-drop adjustments.
  5. SEO Optimization
    AI tools like Jasper or Ahrefs' free AI features can suggest keywords, meta tags, alt text for images, and content improvements to make your small business website search engine-friendly without manual research.
  6. Automated Code Generation
    Non-technical users can describe features (e.g., "add a contact form") to AI like GitHub Copilot or Cursor, which generates the necessary HTML/CSS/JavaScript code to copy-paste into builders.
  7. Integration of Features
    AI assistants can guide or automate adding elements like chatbots (via tools like Intercom AI), e-commerce carts (Shopify Magic), or forms, with step-by-step instructions.
  8. Multilingual Support
    Artificial Intelligence translation tools like Google Translate API or DeepL, integrated into site builders, can automatically translate content for global audiences, handling multiple languages seamlessly.
  9. User Experience Testing
    AI platforms like Hotjar AI or UserTesting's AI insights can analyse mockups or live sites for usability issues, suggesting improvements like better navigation without requiring technical analysis, and bringing the world of UX to small business websites.
  10. Personalisation and Analytics
    AI in tools like Google Analytics 4 or Optimizely can provide easy-to-understand reports on visitor behaviour and recommend site tweaks, such as personalised content sections, to enhance engagement.

It’s no surprise to find that surveys of web designers reveal growing fears around AI simplifying tasks like code generation, reducing demand for entry-level freelance work. As one designer noted, the rush to quick AI-driven builds has devalued fundamentals, making it harder to charge premium rates.

Market Saturation

The barriers to entry for web design have plummeted. Anyone can learn HTML/CSS via free YouTube tutorials and call themselves a web designer. This has led to market saturation, especially among freelancers on marketplaces such as Upwork or Fiverr, where third-world talent undercuts local pricing.

In 2025, freelance web design trends show pricing struggles and a shift away from small business clients.

Small businesses, facing tight budgets, opt for cheap or free alternatives rather than mid-tier freelancers. Moreover, larger design teams are shrinking. Layoffs in tech have flooded the market with skilled designers scrambling for gigs, but small business work isn't lucrative enough to sustain them.

As one industry veteran put it, “web design as an industry is dying,” and this can be seen on job sites where there are hundreds of candidates for every role.

Shifting Business Priorities

For many small businesses, having a website is no longer their main focus. Social media, apps, and e-commerce platforms such as Instagram Shops and TikTok for Business handle much of the online interaction.

Why build small business websites when a Linktree or bio link drives traffic? SEO changes exacerbate this. Google’s algorithm updates have decimated small business websites.

Many small business owners abandon their websites after futile SEO investments, opting instead for social media platforms where they’re more likely to find potential customers.

Even proponents admit that without a bulletproof marketing strategy, small business websites will fail to generate leads, and owners are forced to seek alternatives. And the data backs this up. Ninety per cent of small business websites are projected to fail due to mobile-first shifts and inadequate visibility.

Many business owners now see their website as optional rather than essential.

Economic Pressures: The final blow...

Inflation, remote work, and global competition have squeezed small businesses, making them hesitant to invest in custom web design work. Freelancers report declining rates, and many are pivoting to niches such as app development and AI consulting.

While the freelance market is expected to grow overall, core verticals like web design for small businesses will not.

Pivot or Perish!

Building small business websites isn’t completely extinct, but for most freelancers, it’s a dead end.

The smart move is to up-skill in AI, focus on more complex projects such as web apps, or niche into high-value areas like e-commerce optimisation or custom branding.

If you’re a fellow web designer reading this, don’t despair. The internet evolves, and we must evolve with it. Why cling to building small business websites when there is a world of opportunity out there?

The logic driving small business owners to embrace less expensive tools and alternatives to a website is unassailable. There is no stopping this, and our best bet is to pivot.

A graveyard representing the death of small business websites.
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