Abstract
Background Social media has become an increasingly important business development tool for micro and small enterprises (MSEs), enabling wider market access and stronger customer engagement. However, existing studies have primarily examined the determinants and performance outcomes of social media adoption, with limited attention to how business development strategies differ between traders who actively use social media and those who rely on conventional marketing, particularly in rural communities. This study compares the business development strategies of small traders in Kampung Terachi, Kuala Pilah, Negeri Sembilan, Malaysia. Methods A comparative qualitative case study was conducted using field observations, semi-structured interviews, and documentation involving small traders with different levels of social media utilization. Data were analyzed using the interactive qualitative analysis model of Miles and Huberman, comprising data reduction, data display, and conclusion drawing and verification. Results The findings indicate that traders who actively utilize social media achieve broader market reach, stronger customer acquisition, and more diversified promotional strategies than those relying primarily on conventional marketing. Nevertheless, conventional approaches remain essential for fostering customer trust, loyalty, and repeat purchases through interpersonal relationships, product quality, and strategic business location. The study further identifies the emergence of a hybrid marketing model in which social media primarily functions as a customer acquisition mechanism, while conventional practices support customer retention and long-term business sustainability. The effectiveness of this hybrid strategy depends on entrepreneurs’ digital literacy, content creation capabilities, and consistent customer engagement. Conclusions Social media should be viewed as a complementary strategic resource rather than a replacement for conventional marketing among rural micro and small enterprises. Sustainable business development is achieved through the integration of digital visibility with established relational and operational capabilities, highlighting the importance of strengthening digital competencies while maintaining the trust-based practices that underpin long-term competitiveness.