The purpose of this study is to test the electronic entrepreneurship model in small and medium enterprises (SMEs). This research is applied in terms of its objective and descriptive-survey in terms of data collection. Data were collected using a researcher-developed standardized questionnaire. The statistical population consisted of managers (senior, middle, and operational) active in the field of internet-based businesses, with a total of 158 individuals identified. The sample size was determined to be 113 individuals using the Cochran formula, and a stratified random sampling method based on organizational position was employed. To collect data related to the variables, a researcher-developed questionnaire derived from a doctoral dissertation and an article by Hosseini et al. (2024) was used. The composite reliability and the reliability of each research component were calculated, confirming the validity and reliability of the measurement tool. Structural equation modeling (SEM) using Smart PLS4 software was applied for data analysis. The results indicate that all indicators and factors of the electronic entrepreneurship model in SMEs have factor loadings greater than 0.4, thus confirming the effectiveness of the indicators and factors. Furthermore, the electronic entrepreneurship model for SMEs was developed, and the impact of causal, contextual, and environmental factors on strategies was found to be significant. Additionally, strategies had a positive and significant effect on outcomes and results. Finally, the proposed model demonstrated a good fit. Therefore, the electronic entrepreneurship model can be recommended as a comprehensive and practical framework for all managers of SMEs.