Social media has profoundly transformed the landscape for small businesses in a dynamic manner, offering both significant challenges and opportunities. This service facilitates direct engagement with customers, fostering community and brand loyalty and personalized customer service that can significantly enhance a business’s reputation and customer retention. However, the rapid pace and ever-changing nature of social media also presents various challenges. Small businesses must continuously adapt to new trends, algorithms and platforms, which can be resource incentive. Additionally, the risk of misinformation and the spread of false information can pose significant threats. Small businesses must be vigilant in maintaining their online reputation, promptly addressing any issues or negative feedback. A proactive approach by leveraging the opportunities and mitigating the challenges, small businesses can harness the full potential of social media to drive success and sustainability in today’s digital age. Overall, while social media offers unparalleled opportunities for growth and engagement, it requires a strategic and wellmanaged approach to navigate its complexities and maximize its benefits for small businesses. Research Question: "How do small businesses leverage social media platforms to enhance customer engagement and drive sales, and what are the key challenges they face in sustaining this digital presence?" This question seeks to explore the dual facets of social media’s impact – its potential to significantly boost customer interaction and revenue, the hurdles that small businesses must overcome to maintain an effective and engaging social media strategy. Through this paper, the research aims to provide a comprehensive understanding of dynamic relationship between small businesses and social media, offering valuable insights for business owners and marketers alike