Small businesses constitute an important part of developing countries’ economies. They are considered to operate on low technological levels. However, in the growing discussion on information and communication technologies (ICTs) and economic development small businesses have been identified as major potential beneficiaries of ICTs’ rapid evolution. Evidence, whether small businesses in developing countries manage to participate in these developments have, so far, been scarce. This work analyses in depth the use of ICTs in small businesses based on empirical data from the Indian Small-Scale Industry sector. Patterns of ICT penetration and use are described. Models of ICT adoption and usage intensity are developed and tested. The impact of ICTs on the enterprises’ development is assessed.