Recent, spectacular technological advances and break throughs have made the use of modern information technology a best competitive business tool. This study explores the use of IT by SMEs and their degree of satisfaction in using software and hardware. Results show that use of Word processing and spreadsheet is comparatively high. Use of communication software is very low. There is a dissatisfaction of respondents with software, more than hardware. One main reason is a lack of proper training as employees don’t know how to use the software. Informal training methods like on-the-job training and open learning and training programmes etc. are very effective to train employees.