Technology adoption in micro-enterprises 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 a microenterprise 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 microenterprise from the technology adoption and use.