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This article explores the awareness and level of implementation of e‐commerce in UK small and medium‐sized enterprises (SMEs). Results of a survey of 298 small firms suggest that issues of leadership and waste management are of greater importance to SMEs than development of e‐commerce capability. Those SMEs which have developed e‐commerce capability have not done so strategically and have yet to enjoy significant cost and time savings. The survey also identifies the challenges faced by SMEs. Finally, paths are suggested, which might be followed by such firms in seeking to enhance their performance in e‐commerce.

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