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Micro and small enterprises are influenced a lot due to the adoption of information technology in terms of performance. So, the prime aim of the study is the adoption of information technology and its effects on operational performance of micro and small enterprises in rural areas. A sample of 500 respondent firms from Punjab, Haryana and Himachal Pradesh has been collected from health care services and hospitality sector. To reach the target population judgmental sampling technique has been used. Multiple regression technique has been applied to analyse the results. The study found that the independent variable investment in information technology has positive impact on the operational performance. So, it is suggested that more and more investments in operational performance enhance entrepreneurial performance and also help in survival and generate profits.