The global nature of business today and the advances in information and communications technologies have compelled corporations to employ emerging technologies in order to remain competitive. In recent years electronic business has been adopted by many corporations to improve operational efficiency, profitability, and to strengthen their competitive position. This study examines the impact of web-based e-business on the small and medium-size enterprises (SMEs) in Sweden. The analyses of data collected for this study provide valuable information to the executives of manufacturing and service SMEs. The findings show that the SMEs in the sample have benefited from e-business implementation in both operational and performance areas of their organization.