Regional e-marketplaces (REMs) and B2B portals for SMEs are one type of initiative introduced by local governments and regional consortiums in Australia to improve uptake of e-commerce by small and medium enterprises (SMEs). However, a number of them have failed or are floundering. This paper examines a failed REM in Western Australia from a motivation-ability perspective. Results indicate the need for REM sponsors to match motivation for REM development with resources and to seek strategic partnering to meet resource shortfalls. Matching motivation and resource capabilities can lead to better focused REMs/portals and may improve their chances of success.