This research report study aimed to investigate the “Impact of social media marketing on the business performance; a case study of restaurant and hotel businesses in Namungoona”. Questionnaires were used to collect data under a case study research design. Qualitative and quantitative means were used to analyze the data. The objectives of the study used were; to assess the impact of Facebook on increased business sales of a business, to assess the effect of twitter on increased business profits for the business, to evaluate the relationship between Instagram and increased business branches for the business. From the findings, 42% of participants agreed and 58% of participants strongly agreed that Instagram had assisted them in growing their company's sales. None of the participants were in agreement or disagreement with the assertion. 42% of the survey participants strongly concurred that Instagram draws in-depth users who develop loyal communities. 25% strongly disapproved, 17% disagreed, and 17% agreed with the statement. 50% of the participants strongly agreed that content marketing should be increased. 33% of respondents agreed with the assertion; 17% disapproved, and none completely disagreed or said they were unsure. The purpose of this study was to evaluate how social media advertising affected the profitability of small enterprises, but the investigator was also able to profile how these companies used social media and the difficulties they had with advertising on social media. The results have demonstrated the importance of advertising efforts, even for small businesses, since productivity following the use of social media advertising was superior to that before to its use.