Objectives of this study are to:(i) design, develop, and implement e-business prototype for small businesses;(ii) analyze adoption process of the developed system using TAM (Technology Acceptance Model) structural equation;(iii) analyze the impact of Internet adoption level on business performance and organizational change. Predictor variables for the adoption include (a) perceived easy of use,(b) perceived usefulness,(c) Internet self-efficacy,(d) Internet anxiety,(e) personal innovativeness,(f) competitor pressure, and (g) customer influence. Adoption level are measured in actual manner through webstatistics and perception (ie, self-reported) with three different levels of Internet adoption such as adopter, potential adopter, and non-adopter. Methods of analyses include content validity evaluation, reliability, construct validity, principal component analysis, and multivariate analysis. This paper, however, is intended to describe the e-business prototype, actual Internet adoption measurement using webstatistics, and perceived Internet adoption measurement using users’ perception (ie, self-reported). Variables measured through webstatistics include number of visits to the website, number of visits based on business categories, number of hits per month of registered members. Registered members, until recently, are 136 small businesses. Business category that has largest number of visits is services sector (ie, 359 hits out of total visits 422 hits). Number of registered member who visit the website is relatively few and so the number of visits per member per month. Results of realibility tests for self-reported show that research variables are reliable. These are indicated by Cronbach’s alpha which vary from 0.8562 (Internet anxiety) to 0.9611 (perceived easy of use). Results of construct validity tests show that all research variables are valid which are indicated by KMO ranging from 0.7109 (customer influence) to 0.8243 (Internet anxiety).