The right database software tracks customer interactions, inventory and sales without jumping between spreadsheets. It’s the difference between digging through files and finding what you need in seconds.
There are two main types: simple platforms ready to use out of the box or fully custom databases requiring technical know-how. The best choice depends on your team’s tech abilities and day-to-day workflow.
In this article, you’ll learn what small business database software does, what type of database you need and recommended options.
What is small business database software (and why do you need it)?
Small business database software replaces scattered files with one connected system. Unlike spreadsheets, it understands how your data fits together, prevents duplicates and keeps information accurate for everyone on your team.
Database software helps small businesses organize key information. It manages things like:
Customer information. Logs every interaction, tracks purchase history and builds detailed customer profiles. You’ll see a caller’s complete history right away.
Inventory. Updates stock levels in real time and tracks supplier details. When a product runs low, your system notifies you before it runs out.
Sales and transactions. Stores orders, invoices and payment history, so you always know where a deal stands. You can access and show clients their invoices right away.
Product catalogs. Manages product descriptions, pricing and availability. If you update a product’s price, it syncs across your sales channels.
Customer support tickets. Tracks customer complaints, resolutions and response times, giving your team context for every interaction. When a customer follows up, your team sees past discussions.
Subscriptions and memberships. Handles billing cycles, renewal dates and user activity. If a membership is about to expire, your system flags the customer’s profile with a renewal reminder.
A well-built database replaces hours of manual updates with automation. It pulls up any customer, order or product in seconds and uncovers trends you’d otherwise miss.
3 types of database software: what small businesses need to know
Not all database software works the same. Some tools are ready to use immediately, while others require technical setup. Here are the three main types of database solutions for small business management.
1. Database-backed business software (best for small businesses)
Database-backed software like Pipedrive builds on top of databases but hides the complexity. You don’t see tables, code or technical settings. Instead, you get a simple dashboard to search and organize your business data.
How it works: Pipedrive allows you to create records and choose which fields to include (such as “customer name” or “product price”). The software handles the data structure and keeps everything in sync behind the scenes.
Here’s a quick summary of database-backed business software:
Requirements | Details |
Technical skills | Low – no coding or database skills needed |
Setup | Quick – choose a template and start entering data |
Who it’s for | Solopreneurs and small teams who want a simple solution |
Custom setup | Optional – works out of the box, but you can tweak fields and workflows |
Businesses use database-backed software for things like:
Sales tracking
This software is better for regular users than developers. It uses templates and features for everyday tasks, such as tracking sales or logging customer requests.
2. SQL database software (best for custom, structured systems)
SQL databases like MySQL or PostgreSQL store business data in structured tables – similar to spreadsheets but more powerful. You define what information to track and how they relate to each other.
How it works: SQL database software allows developers to create the database structure (schema). They define data relationships (like linking customers to orders) and write queries to manage or retrieve information.
You interact with the data using structured query language (SQL) – a coding language that lets you add records, run reports and connect tables. It gives you complete control, but you need someone who understands databases.
For example, your relational SQL database could include a customer table and an order table. Each customer has a unique ID, known as a primary key. In the order table, that same customer ID appears as a foreign key, linking each order to the customer who made it.
This connection pulls data from both tables when needed, like listing all customers who placed an order on a specific date. You can also use that structured data to create reports or connect to other business tools.
Here’s a summary of SQL database solutions:
Requirements | Details |
Technical skills | Medium to high – requires knowledge of SQL and database design |
Setup | Moderate – involves schema design, hosting and integration with apps |
Who it’s for | Businesses with technical resources and developers on hand |
Custom setup | Yes – you must manually configure everything from the structure to the reports |
Businesses use SQL databases for:
E-commerce systems – store customers, products, orders and transactions in connected tables
Custom internal tools – build a backend for employee scheduling, job tracking or order fulfillment
Business reporting and dashboards – pull detailed reports across multiple data points (e.g., sales by region or customer lifetime value)
SQL databases are best for businesses that need a custom system and have access to technical resources. You get complete control over storing and using data, but you’ll need a developer to build and maintain it.
3. NoSQL database solutions (best for fast-moving, flexible data)
NoSQL databases store business data more flexibly than traditional table-based systems. Instead of relying on rows and columns, they use document structures with key-value pairs.
How it works: NoSQL database solutions allow developers to create collections (similar to folders) that hold documents. Each document is a single-subject data file, such as a customer record. These documents use JSON, which looks like a list of labels and values.
Below is a customer document example:
The value (the data, like “Jane Smith”) follows the key (a label, like “name”). All of Jane’s details are in one document. You don’t need to link to a separate table as in SQL. If you want to find a customer’s order history, you look inside their document.
NoSQL databases don’t use strict rules. Two customer documents might include different fields, and that’s okay. This makes NoSQL flexible, but it also means your developer needs to plan carefully to keep things organized.
Here’s a summary of NoSQL database solutions:
Requirements | Details |
Technical skills | High – developers need to understand flexible data formats and how to structure documents |
Setup | Varies – hosted choices are simple, while custom builds need more preparation |
Who it’s for | Businesses building systems that handle fast-changing or complex data |
Custom setup | Yes – developers decide how to store, retrieve and connect data |
Businesses use NoSQL databases for things like:
User profiles with activity logs – store contact info, preferences and browsing or app usage history
Real-time messaging or chat systems – deliver and store messages instantly across users and devices
Mobile or web app backends – support flexible data needs in apps with notifications, user tracking or personalized content
NoSQL databases work best for businesses building systems that need to grow and change quickly. They give you more freedom with your data, but you’ll still need a developer to make it work smoothly.
9 best small business database software solutions
Here’s a comparison of nine database solutions, including their key features, how they work and which businesses they suit best.
1. Pipedrive CRM
Pipedrive is a sales-focused CRM. It helps small businesses manage customer relationships, track deals and automate workflows. Behind the scenes, it runs on a structured SQL-based database and offers strong data management capabilities.
It functions like a database, using pipelines and lists to organize information instead of traditional tables.
Pipedrive’s key features:
Custom data fields. Create fields for anything you need to track, from project milestones to customer preferences. For example, IT providers can log each client’s hardware specifications and service histories.
Kanban-style pipeline management. Visually track leads, sales deals and tasks using a drag-and-drop interface. SaaS companies use this to monitor free trial sign-ups, move sales leads through onboarding stages and identify users ready for an upgrade.
Automated workflows. Set up rules to trigger emails or update statuses based on customer actions. For instance, an e-commerce store can automate abandoned cart follow-ups when a customer leaves items in their cart.
Integration with third-party tools. Connect with apps like Zapier, QuickBooks and Google Workspace to centralize business operations. For instance, marketers sync campaign data between tools so team members have the latest performance metrics.
Bulk data import and export. Streamline uploading and exporting structured data without complex database queries (or programming languages). It’s user-friendly, allowing you to add leads, deals, products, notes and activities simultaneously.
Who it’s best for: small businesses that need a CRM for sales automation with database capabilities. It’s beneficial for teams that manage customer interactions, deal pipelines and marketing efforts.
2. Knack
Knack is a cloud-based database platform. It offers a customizable web app builder, letting you create custom databases, workflows and reports.
Knack’s key features:
Visual app builder – drag-and-drop elements to create databases, forms and sales dashboards without coding
Role-based access – control who can view and edit different parts of your database
Automated workflows – set up triggers to send emails, update records or generate reports based on user actions
Custom portals – create separate logins for employees, customers or vendors, each with personalized views
How it works: Knack’s interface focuses on data objects like database tables. You can define fields and set relationships between objects. You can also create interactive views using a point-and-click editor, including forms, tables and reports.
Who it’s best for: small businesses that lack the resources for custom development. It also works for companies managing customer databases, inventory or order tracking in ways that spreadsheets can’t.
3. Airtable
Airtable is a cloud-based platform that combines spreadsheets with the structure of a database solution. Its grid-based interface allows users to organize and collaborate on data.
Airtable’s key features:
Spreadsheet-style interface – enter, sort and filter data in a grid layout
Multiple view options – switch between table, calendar, Kanban and gallery views to manage different workflows
Pre-built templates – use templates to set up databases for tasks like creative content planning or inventory tracking
Built-in integrations – connect with tools like Slack, Google Workspace and Shopify
How it works: Airtable organizes data into bases like collaborative workspaces. Each base contains tables (similar to spreadsheets), where you define fields, attach files and link records between tables to create relationships.
Who it’s best for: small businesses with marketing teams that perform content planning and project management tasks.
4. MongoDB
MongoDB is a document-based NoSQL database that allows businesses to store data without a predefined format. This is useful when stored information changes over time.
MongoDB’s key features:
Format flexibility – add new fields without changing the entire database to accommodate changes
Scalability – spreads data across multiple servers to handle growing workloads and large datasets
Full-text search – built-in search capabilities to filter and retrieve information
Cloud-based options – provides a managed cloud solution with automatic scaling and backups
How it works: MongoDB stores data in collections instead of tables. Each entry is a document with keys and values, similar to how a contact list stores names and phone numbers. You can modify the structure as your business needs change.
Who it’s best for: small businesses managing e-commerce product catalogs, customer profiles or content management systems. It’s suitable for companies needing more flexibility than what traditional databases offer.
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5. MySQL
MySQL is an open-source relational database management system (RDBMS). Businesses use it to manage structured data in web applications, transactional systems and large-scale data processing.
MySQL’s key features:
Secure storage. MySQL uses InnoDB as its default storage engine to process transactions safely. If a power failure or system crash occurs, MySQL recovers the data to prevent corruption.
Data replication. MySQL copies data across multiple servers so a backup can take over immediately if the primary server fails. For example, a retail company might use replication to maintain real-time inventory data across its online and physical stores.
MySQL Workbench. A built-in tool with data visualization that lets you design and analyze databases without writing complex code. For instance, a developer can create an entity-relationship diagram to model database structures visually before implementation.
Partitioning. Split large databases into smaller sections to improve performance. For example, an online store with millions of customer records can organize data by region or year, making searches and reports faster.
Who it’s best for: companies that need a high-performance yet cost-effective database solution. Its open-source model has no licensing costs. Small businesses can use it, yet it also supports large-scale applications.
6. PostgreSQL
PostgreSQL is another open-source relational database. It handles complex queries, making it useful for data analysis and real-time processing (e.g., handling transactions).
PostgreSQL’s key features:
Supports complex data types – stores a wide range of data, including JSON, XML, geolocation coordinates and custom data structures
Advanced automation – automates repetitive tasks like updating inventory levels or notifying customers when their orders ship
Multi-version concurrency control (MVCC) – allows multiple users to access and modify information without slowing down the system
Full-text search – includes powerful search tools that allow businesses to find relevant information in product catalogs, customer databases or support tickets
Who it’s best for: businesses that handle data-heavy applications and analytics. It can generate customer insights, forecast finances and track logistics. Its open-source model keeps costs low despite having enterprise features.
7. Oracle Database
Oracle Database is a relational database system developed by Oracle Corporation. It manages large-scale structured data for applications, such as transaction processing, analytics and data warehousing.
Oracle Database’s key features:
Automated data management – automates performance tuning, backups and indexing, reducing the need for hands-on maintenance
Advanced security – includes encryption, data masking and user permission controls to protect sensitive business information like customer records
Deployment flexibility – offers multiple deployment options, including on-premises, cloud-based and hybrid models
Who it’s best for: businesses that need a high-performance database with security features. It’s useful for industries that require data to be continuously available, such as banking, telecommunications and large-scale retail.
8. Microsoft SQL Server
Microsoft released SQL Server in 1989 as a relational database system for businesses running Windows applications. Over time, it has become an enterprise database with tools for transaction processing, analytics and business intelligence.
Microsoft SQL Server’s key features:
Integrates with the Microsoft ecosystem – works with Microsoft Excel, Power BI and Azure to generate reports, analyze data and manage cloud-based storage
Disaster recovery – has several data recovery features to ensure data is always accessible
Built-in security features – includes encryption, role-based access control and auditing tools to help businesses protect sensitive data and ensure regulatory compliance
AI-driven performance optimization – uses intelligent query processing and machine learning to optimize database performance
Who it’s best for: businesses that already use Microsoft products and need a database that will integrate. It supports applications that require data security and cloud integration, as well as financial services and healthcare companies.
9. SQLite
SQLite is a lightweight, file-based relational database management system. Unlike most relational databases, SQLite doesn’t require installation or configuration, making it easy for local storage needs.
SQLite’s key features:
Serverless architecture – stores data in a single file on disk, eliminating the need for a separate database server
Zero configuration – requires no setup, making it easy for startup companies and small business owners to use without extensive database administration
Cross-platform compatibility – works on Windows, macOS, Linux and mobile operating systems
Lightweight – works well for mobile apps and small-scale applications
Who it’s best for: developers and small businesses that need a database without the overhead of a complete database server. It works for local data storage in mobile apps and business tools that don’t need multi-user access or large-scale data processing.
How to choose the right database software for small business
The right database depends on your business needs, technical expertise and budget. Here are a few things to consider when deciding:
Data type and structure. A relational database like MySQL is a good fit if your business manages structured data like transactions and inventory. A NoSQL solution may be better if you work with unstructured data (e.g., social media interactions).
Business use case to manage. Some businesses need a traditional database, while others benefit from platforms designed for managing leads and sales. For example, Pipedrive helps track customer interactions and sales pipelines.
Scalability and future growth. A small business running a simple website might use a lightweight tool for simple data storage. Businesses expecting more users and data growth may need a scalable, online database.
Learning curve and maintenance. If you lack IT expertise, a no-code tool like Pipedrive simplifies setup and management. More complex databases, like Oracle, have advanced capabilities but need dedicated admin.
Budget constraints. Open-source databases are free, while commercial options have high licensing fees. Cloud-based solutions like Pipedrive use subscription pricing. It’s more cost-effective for small businesses that don’t need a complete database system.
Consider your needs and budget carefully when choosing a solution for your business.
Final thoughts
When you organize and make customer data easily accessible, your team works faster and closes more deals.
Pipedrive is a simple CRM platform that integrates everything. It allows you to track every customer interaction, automate sales processes and give your team the information they need when they need it.
Start your 14-day free trial to see how much more your team can accomplish with accessible business data.
