Small medium enterprise nowadays has become the larger enterprise nightmare by the mushrooming of social media marketing. This tool has become the new trend for a small business which will help them to expand the business networking. When social media marketing and businesses are being combined, they will be undefeatable. However, for the Japan SMEs, there are still lacks of confidence in using social media for the business operation. This research paper analysed the overwhelming power of social media marketing for the business purpose which proven the business performance also affected. The quantitative research data was gathered in this study with the aid of a questionnaire. Twenty five questionnaires were sent to the people that working in SMEs in Japan through the email list which was given by researcher’s friend in Japan. Another twenty five respondents were gathered from Malaysia via email as well. The results of the questionnaire revealed the major potential of social media in enhancing business performance of SMEs. The author recommends that every management of SMEs reevaluate their practices in handling social media for business either in Malaysia or in Japan, and begin developing guideline for the employees in handling social media matters.