The purpose of this essay is to describe and understand how small companies use electronic business and which rolls electronic business had in the companies’ development. We have interviewed the owner or the person responsible for the information technology in five small companies in Värmland. We found that the respondents have a positive view on the electronic business phenomenon. The drives towards electronic business were indirect demands from the surrounding. Respondents’ stated that the lack of resources and time were the main barrier. We have seen that the lack of education within the subject area lies behind the difficulties for the companies to fully take advantage of the possibilities technology offers. Our recommendation therefore is to increase spending on educational areas that the business wished to have. Further, more recommendation from us is that the local government should offer small companies the possibility for counseling on questions related to IT.