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E-business refers to the transformation of business processes and business relationships using web-based technologies. It includes e-commerce (online transactions), e-collaboration (among staff, customers, and partners/suppliers), and the development of e-communities (Finneran, 2000). Its main characteristic is using web-based technologies to become truly customer focused (Bock & Marshak, 2000). Of necessity, this means that at least part of a business ’ operations move online to take advantage of the many-to-many communications features of the Web. The transition to e-business is a complex one. It requires not only financial resources for technological changes but also staff time to develop new concepts and organizational structures, to become trained in the new business model and supporting technologies, and to support its execution. Creating or developing an online portion of a business operation can be like opening another office-- in cyberspace. This paper provides a framework for assessing the business case for small firms regarding the transition from traditional business practices to e-business. It provides a starting point for policy analysts and for small business owners in answering questions like under wha