Much empirical work has investigated the nature of information systems (IS) evaluation in large organizations. However, little work has examined the nature of evaluation in small and medium-sized enterprises (SMEs). This paper discusses IS evaluation in the context of SMEs by identifying a number of issues particularly relevant to such organizations. Drawing on the experiences of four SMEs, the paper identifies the following factors and their implications for evaluation practice: a lack of business and IS/IT strategy; limited access to capital resources; an emphasis on automating; the influence of major customers; and limited information skills. The paper draws on two frameworks of evaluation which are used to help understand evaluation practices in SMEs, and which form a structure within which future research may be placed. The paper concludes with a set of propositions which constitute a research agenda for further examining evaluation practice in SMEs.