Dissertation (MA Public Administration)This research’s aim was to investigate the extent and effects of adopting e-commerce among SMEs in Tanzania taking Dodoma Urban as a case study. The specific objectives of this was to examine the extent of using e-commerce, factors that determine the adoption of e-commerce and the contributions of e-commerce to the economy.. The study has applied a combination of both cross section and a case study approaches to improve the quality of findings. The sample was obtained by purposive sampling of businesses and there were about 79 of the respondents. It has collected data using interviews with an aid of Questionnaire. The study has found out that only few SMEs were utilizing e-commerce services. This was due to a number of reasons such as high cost of internet, power interruption and low capital. The application of e-commerce was reported to have insignificant contribution to their profit due to a number of constraints. The study has concluded that the extent and the side effects of using e-commerce among SME in Tanzania are still low. Therefore there is a need for the government to intervene by providing conducive environment in terms of reducing tax, improving power supply and providing easy access to loans for the SME so that they are able to acquire the technology.