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To develop a basic model of e‐commerce adoption barriers to small businesses located in regional areas of developed countries.

An empirical survey of 477 small businesses in Sweden and Australia about e‐commerce adoption and implementation. The data was analysed using correlation matrices and factor analysis to derive a model of e‐commerce barriers.

E‐commerce adoption barriers to small businesses in regional areas in both Sweden and Australia can be grouped according to two distinct factors: e‐commerce is either “too difficult” or “unsuitable” for the business. The model derived is based on these factors.

Limitations – inability to derive industry specific conclusions; standard limitations associated with mailed survey instruments; further qualitative research is necessary. Research implications – “first of its kind” model of e‐commerce adoption barriers to small businesses located in regional areas; consolidated understanding of e‐commerce adoption barriers.

Significant implications for government organizations engaged in promoting e‐commerce adoption in small businesses. This research indicates where and how adoption initiatives should be targeted.

This research fills a gap in our knowledge about e‐commerce adoption barriers and overcomes some of the fragmentation associated with e‐commerce adoption in small businesses.