Electronic commerce or E-commerce is already causing fundamental changes to the traditional economic market place, affecting every aspect of how business is and will be conducted. The issue is whether or not Small and Medium Sized enterprises (SME’s) will be able to take advantage of the opportunities afforded by E-commerce. The literature and research surrounding E-commerce activity has been dominated by an examination of its relevance to the large enterprise. This paper addresses its relevance to the small and medium enterprise. It describes research conducted on the awareness and uptake of E-commerce amongst the SMEs in the South Wales region, an area of the UK which is characterised by both extremes of economic prosperity and deprivation. Our research suggests that SMEs within this region are predominantly using the Internet as a communication and advertising medium. Little thought appears to have been given to how E-commerce can be used as an enabler of business change amongst this sector of the economy.