A Dissertation submitted in partial Fulfillment of the Requirements for the Degree of Master of Business Administration (Corporate Management) of Mzumbe University.Social media applications has been an avenue that no longer serves as a means of relaying information to the public on what is going on over parts of the world, but has been diverted to use as a source of product awareness to the public by utilizing it as a marketing tool. With the increasing adoption and usage of social media application by majority individuals in Tanzania, the study intended to make an assessment of social media in business operation among traders in Tanzania with the specific in Dar es Salaam city. The the study main objective was to assess the impact that social media has on income generation among traders in Tanzania. The study utilized primary data source of information collected through use of an open ended questionnaire tool in Dar es Salaam, and a sample of 130 business entities were interviewed. Upon collection, questionnaires were sorted, cleaned, and entered into Ms. Spreadsheet and further analyzed using STATA for inferential statistics. The study findings observed that all the interviewed traders were aware of the social media in business practice though only 90% of the respondent indicated they use social media to promote their business mostly on Instagram through their smart phones. The study revealed that, the way promotions are done and how frequent the adverts are posted, leads to the increase in demand of the product to the customers and in return they become loyal customers by 82%. By using a Logit model, a regression analysis was done and observed two variables; the marital status of the business owners and the use of social media in advertising the business were negatively and statistically not significant towards increasing sells of a business The study further recommends that since social media have been proved and verified as not sufficient means to foster income generation among traders there should be adoption of business related skills like investment in financial skills, good customer care and research and development together with investment in the marketing strategy skills for effectiveness and efficiency to guarantee income generation among traders.