In today's world, social networks have become an indispensable part of everyday life for people around the world, and the same holds true for the business world. Social networks are a powerful tool for communication, marketing, and promotion. Small and medium-sized entrepreneurs have recognized the opportunities that social networks offer and have increasingly incorporated them into their business strategies. The purpose of this master's thesis is to provide insight into the impact of social networks on the operations of small and medium-sized enterprises (SMEs). The goal is to explore the possibilities that social networks offer to entrepreneurs and potential challenges they face. Primary and secondary data sources were used for writing this thesis. Secondary data sources were used to develop the theoretical part of the thesis and include expert books, scientific articles and papers, and websites. Primary data was collected through a survey questionnaire aimed at small and medium-sized enterprises. The questionnaire included 15 specific questions with the aim of studying the impact of social networks on the operations of SMEs, and 21 companies participated in the survey. The research results clearly indicate a high level of engagement of small and medium-sized enterprises on social networks and confirm the importance of social media in their marketing strategies. Furthermore, the results confirm that social networks have become a key tool in the operations of small and medium-sized enterprises. Their role in establishing communication, increasing visibility, and promoting products and services is immensely important.