With a major proportion of research on Electronic Commerce (EC) undertaken on large corporations, and focused primarily on developed countries, little is known about the determinants of EC in Small and Medium-sized Enterprises (SMEs) of developing nations. This chapter explores the extent of EC use by SMEs, and provides some empirical evidence of how internal factors of firm and owner are influencing EC adoption among smaller businesses in Malaysia. The methodology and results of this study may be applicable to other developing countries. Findings confirm the low level of participation in EC by SMEs. The age of enterprise, as well as the owner’s gender and education were found to be significant in determining the level of EC adoption. Though some of the results contradict those of previous studies, they may have a greater implication for government authorities in drawing up guidelines, approaches, and formulating more effective frameworks to promote EC use among SMEs in developing countries.