The research reported in this paper was undertaken to investigate the importance of teleworking as an innovative work practice in small business enterprises (SBEs) in South Wales. In order to accomplish this the research uses a qualitative research approach which employed an online focus group and in-depth interviews through questionnaires and interviews with various organizations, employees and employers and key policy makers in Wales to construct a framework to provide greater understanding of this phenomenon. The research concludes that teleworking is regarded to be important for the advancement of SBEs in Wales. It is the first study to investigate and evaluate the practice of teleworking and how its innovative application framework affects SBEs directly in Wales to help businesses succeed.