A thorough attempt is made to understand the concept of e-commerce and innovation in a contemporary context, with a special emphasis on the human issues associated with innovation and how the attempts to introduce innovation in small businesses impact the employees, managers and customers. A methodical study was conducted to identify the specific relationships existing between innovation and organizational stakeholders and the nature and location of the identified firms. A field experimental interaction mechanism was fabricated to facilitate the collection of requisite data and information from employees and customers in a selected business. Efforts were also made to understand how an e-commerce oriented innovation in small firms might facilitate the introduction of new products and services. It appears that technology stands to be the primary engine, which can encourage and enable change and innovation in small organizations.The aim of this research is to evaluate whether timely innovation, with emphasis on e-commerce as an affordable and relatively simple innovation, could help small businesses transform into successful and sustainable ventures. Currently, economic meltdown and recession inform all aspects of business planning no matter the size of the business concerned. Small businesses, though, face stiff competition from big firms because they cannot resort to capital-intensive strategies dependent on large volumes and investment in massive technological solutions. It is particularly the possibilities for and effects of an investment in technology for small businesses that inform the focus of this paper.Therefore, this study was undertaken to see if optimal and timely innovations in the spheres of technology, and in the related and essential area of business models, could help small businesses ensure sustainability and survival. This study intends to delve into the prospects of innovation in small businesses and the resultant technological changes influencing the human attitudes of stakeholders that essentially go along with the concept of innovation.