Enterprise Resource Planning system (ERP) is a planning application developed essential for the management manufacturing processes on a computer. This paper provides an analysis of the impacts of ERP adoption in SMEs. According to this study, the incorporation of characteristics-related aspects would help to better explain ERP adoption, according to the same line of thinking. The subsections in this paper present a discussion of the factors and components as well as their postulated correlation with ERP adoption. The adoption of ERP in SMEs is critically evaluating using a model, which integrates the TOE (Technology-Organization-Environment) framework and they theory of organization information. The literature part of this paper provides a basis of understand of the determinants of ERP adoption within these enterprises to enhance business performance. From this research, it may be concluded that it is important for businesses to adopt and utilize the ERP system properly in order to improve their performances.