-

During the three recent decades, large organizations, affected by the environmental transformations and stiff competitions, have tended to use information technology and information systems and smaller entities
have followed suit accordingly. Despite the fact that introduction of microprocessers and applied programming , as well as the use of information technology and information systems have rapidly spread


into small businesses on a large scale, owing to certain constraints such as financial problems, managers' and users' lack of knowledge concerning the information technology and absence of long-term planning, such systems are not effectively and effieiently utilized.
Considering the roles played by small organizations in the economic systems of countries, specifically in the developing states with respect to
the gross national product, fair distribution of incomes and employment
creation, this article identifies the obstacles and then suggests effective solutions in applying the information technology and information systems in small businesses.