This paper examines the extent of Information Technology (IT) skill, usage and adoption among Small and Medium Enterprises (SMEs) owners in Malaysia. It also identifies the innovation characteristics and adopters categories among the SME owners. The survey instrument was developed from the constructs used in the Adoption Theory. There were 383 SME owners participated in this study. The findings show that the IT skills possessed by the SME owners in Malaysia are poor; the usage of IT is low and the adoption of IT is slow and late. The implications of the study are discussed. IT represents a substantial investment for organisations of all varieties. This technology is being utilised to support diverse strategic and operational objectives ranging from enabling competitive strategy to performing routine operational tasks.