Small enterprises (SE's) provide a major portion of the employment in most European countries. More than 90 per cent of the total number of European Union (EU) businesses are comprised of SE's, accounting for 25 per cent of EU turnover. This paper investigates the strategic management of information technology (IT) and organisation within European Small Enterprises (SE's). SE's in six different European countries/regions were included in the European Small Enterprise Information Technology (SEIT) study conducted at INSEAD: Benelux, France, Germany, Italy, Spain and the UK. The results show that European SE's have to innovate from both technological and organisational perspectives and build partnerships with other organisations in order to successfully address strategic opportunities and challenges.