The use of e‐commerce and the Internet is increasing in acceptance for a wide range of businesses from large enterprises to small and micro businesses. While the literature on e‐business and e‐commerce is evolving, there is limited substantive research focused on the theory and practice of e‐business systems amongst small and medium sized enterprises (SMEs). This paper provides an insight into thirty‐four SMEs actively utilising e‐commerce. The paper also provides a theoretical contribution by developing a conceptual model of e‐commerce utilisation for SMEs within the Australian context, which depicts the relationship between the use of e‐commerce by SMEs, the degree of business transformation and the strategic significance of e‐commerce. Keywords: Case Study, Small Business, Electronic Commerce, Business Transformation