I think it's quite difficult for small businesses to do well with nostr at it's present state.

Social media like Instagram, Facebook, etc helps small business grow by reaching intended untapped audiences but without an algorithm to guide new customers into finding them, it is really difficult.

Nostr is good for small businesses to maintain and connect with their existing customer base though. I think the connection on Nostr is much more authentic and intimate. Partially because of its small size and "early internet" feels and partially because of the immediacy and direct nature of zaps.

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I have noticed the opposite. I think I have gotten more orders here, and more interaction on what I’m making and selling. Facebook has its plus side but here I know I’m not being shadowbanned by that other page who paid money to be promoted. I’m being seen by people that have chosen to follow me.

I think it depends on the business. Your niche is the majority of the audience that's on Nostr right now. That's working in your favor.