The most common and most likely answer to this crossword clue is the 7 letter word GOSSIPS
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Buddy explains!

The straight part
We know that "Makes small talk" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case makes small talk = gossips.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does GOSSIPS mean?
GOSSIPS noun- Someone who likes to talk about other people's private or personal business.
- Idle talk about someone’s private or personal matters, especially someone not present.
- Idle conversation in general.
- A genre in contemporary media, usually focused on the personal affairs of celebrities.
- A sponsor; a godfather or godmother; the godparent of one's child.
- A familiar acquaintance.
- Title used with the name of one's child's godparent or of a friend.
- To talk about someone else's private or personal business, especially in a manner that spreads the information.
- To talk idly.
- To stand godfather to; to provide godparents for.
- To enjoy oneself during festivities, to make merry.