246 Rizk Copyright © 2006, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited. Chapter XII Venturing the Unexplored: E-Readiness Assessment of Small and Medium Enterprises in Egypt Nagla Rizk, The American University in Cairo, Egypt Abstract This chapter adopts a micro approach towards assessing the e-readiness of small and medium enterprises in the textile industry in Egypt. The analysis focuses on evaluating firms’ level of connectivity, awareness and usage of ICTs and identifies barriers to e- readiness. The chapter adds to the literature on e-readiness assessment, which is mostly macro in nature. The micro approach focuses on ICT awareness and usage patterns, and has the advantage of capturing variations at the firm level. Based on connectivity alone, neither small nor medium firms under study were found close to being e-ready. However, extending e-readiness to include the use and awareness of ICTs, one may conclude that e-readiness is in general directly proportional to size. Medium-sized firms, therefore, are potentially e-ready. The chapter argues that raising SME e- readiness would require heavy investment in human capital and raising awareness in addition to upgrading levels and types of connectivity. IDEA GROUP PUBLISHING 701 E. Chocolate Avenue, Suite 200, Hershey PA 17033-1240, USA Tel: 717/533-8845; Fax 717/533-8661; URL-http://www.idea-group.com ITB11189 This chapter appears in the book, Electronic Business in Developing Countries: Opportunities and Challenges edited by Sherif Kamel. © 2005, Idea Group Inc.