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.