Digitalization has affected every aspect of human existence, and as the market must adapt to the consumer, it plays a major role in the development of companies. In addition to various digital tools for the purpose of improving internal processes, for example the introduction of ERP or CRM systems, digitalization can also improve other aspects of business, for example marketing. In the context of marketing, an example of digitalization can be used with social networks for the purpose of business improvement. Considering that in the past, small and medium-sized enterprises have faced numerous obstacles to keep pace with large enterprises, the availability of social networks gives them the opportunity to start digitizing their enterprises and get closer to large enterprises. The aim of this paper was to examine to what extent social media contribute to the business of medium and small companies in the beauty industry in the Republic of Croatia. In the qualitative research, five structured interviews were conducted with business owners in the beauty industry. The results indicate that small and medium-sized companies in the beauty industry have taken the first steps towards digitalization in terms of using social networks for marketing purposes and that it has a positive impact on their business. They mostly use Instagram because of its simplicity and usefulness; however, they do not apply a clearly developed marketing strategy. The results also indicate that business owners are most often in charge of creating content and managing social networks. Sometimes employees are involved, and marketing experts are rarely hired for consultancy. The results of this research contribute to a better understanding of the positive impact of the use of social networks on the operations of small and medium-sized enterprises. If steps towards the proper use of social networks in business would be taken, as identified in this research, small and medium-sized companies could have long-term positive business results conditioned by social networks. For example, by hiring a social network consultant, creating a marketing strategy, or creating content for the purpose of connecting with potential and existing audiences instead of exclusively promoting services.