The ability of micro-enterprises to adopt technology depends upon the unique conditions in which they find themselves. The goal of this study was to investigate and assess such adoption through a very systematic and contextualized approach. An action research methodology was used to investigate two micro-enterprises in Western New York during a five-month timespan. The contribution of this study is in applying a modified adaptation of the capabilities framework to understand the nature of the grass-root level impact within the micro-enterprises from the technology adoption and use.