This study attempts to explore the internal and external factors affecting the adoption and acceptance of e-commerce by businesses in developing countries. It provides an exploratory analysis of surveying 524 firms in Abu Dhabi. In an attempt to specify the factors that encourage/deter e-commerce adoption by businesses, 14 factors (8 internal and 6 external) were surveyed. The results indicated that most of the firms were either at the first or second stage on the e-commerce 5-stage adoption ladder. This indicated that the e-commerce adoption is not matching and far less than the IT readiness of both the firms and the country.