In the present era of e-commerce and economic globalization, adoption of information technology to support business regardless of business size is a crucial prerequisite to success. Owing to the intensified competitive pressure and necessity for entering to international market, small businesses are incrementally deploying information technology to take advantage of its substantial benefits. This paper examines the extent of information technology adoption among the businesses which fall in the category of small business such as Plastic industries, Mushroom production firms, Cane industries, Handicrafts manufacturer, Bakery industries ( bread, cookies, cakes, pastries biscuits) etc.  The purpose of this paper is to analyze the perception of entrepreneurs regarding IT adoption in small business and to find out the factors that influence IT adoption process. The study is a descriptive research. Data were collected using a structured survey questionnaire of 40 entrepreneurs of small businesses in Sylhet, Bangladesh. The researcher conducted various statistical analyses such as- frequency distribution, descriptive statistics, correlation analysis and chi-square tests to analyze the survey responses and identified a number of key findings. The study reveals various factors including competitive advantage, better quality of services, productivity, IT infrastructure, IT training and cost maximization that affect IT adoption in small businesses.

KEYWORDS: Adoption process, Competitive advantage, Information technology, Information system, Small business.