This study addresses factors commonly examined in the research concerning adoption and use of e-business and e-commerce information technology (EEIT) by small and medium enterprises (SMEs). The primary objectives are to determine: 1) what barriers and incentives SMEs perceive in adopting EEIT; 2) how the level of adoption of EEIT influences perceptions of incentives and barriers; and 3) whether results vary depending on demographic characteristics of size, geographic market scope, or industry sector. This paper also examines how homogenous SMEsâ€™ perceptions are in their consideration of EEIT adoption factors. Data were collected from 290 U.S. SMEs. The findings revealed that among 25 factors identified in the research literature as incentives or barriers to adoption of EEIT by SMEs, only 16 factors were significant in the population studied, 12 as incentives and four as barriers. Factors were perceived differently as incentives or barriers by adopters, intended adopters, and non-adopters of EEIT. A number of differences were found among SMEs based on demographic characteristics, particularly size and industry-sector.