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Government initiatives are continuously being designed to create stable and supportive environments for developing new industries. Presents a conceptual model for use by governments in creating and sustaining an appropriate climate that facilitates the national adoption of e‐business. It focuses specifically on the needs of small and medium‐sized enterprises (SMEs). Also suggests six categories of e‐business readiness metrics and measures to be used for assessing how a country is performing in terms of providing a positive e‐business readiness climate. Examples of innovative initiatives are provided from Canada, The Netherlands, Norway, and Singapore. Concludes that a balance among attention to infrastructure components has not yet been achieved in these countries.