Smallmouth bass can see colors, according to what I've read, medium red through green is what they see best. That covers lighter reds, orange, chartreuse and green. As you move through darker reds, blues, purple, greens, they would look the same as black. If you look at older Rapala minnow lures, they're fairly simple a dark back, silver or white on the bottom.
Color can make a difference with lures or jigs. If I look at my lure box, most of my minnow lures have those colors in them. One of my most effective lure colors is fire tiger, which you don't see mentioned a lot on the board. Bright or fluorescent orange, yellow and green combination. Shape has role. Long, thin lures are good minnow imitations. Wide body lures are good if there are shad or sunfish in the lake. Depending on what type of soft plastic I'm using, I will normally use a chartreuse jig, unless I'm bottom bouncing I use darker colors.
Another thing to consider is the depth and clarity of the water. That will impact how the color of the lure or jig is seen.
So to answer your question, smallies can see colors.