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In the article critical factors which affect possibilities and efficiency of applying knowledge management systems (KMS) at Polish small and medium enterprises (SMEs) were studied using survey method, as well as the barriers to the KMS implementation. Analysis contains relevance of 8 different factors which determine efficiency and barriers to the implementation of KMS at Polish SMEs in three areas: company management, KM processes and KMS technical architecture. The importance level of each critical factor was defined making it possible to rank critical factors and set priorities in encouraging SMEs to implement KMS. The readiness of SMEs in Poland to use KMS is studied. The main conclusion is that many of SMEs in Poland are not ready for implementation of KMS. Most of them do not have it as a goal in their development strategies, nor are they prepared technologically.