The use of location-based mobile advertising to deliver context specific information from businesses to clients has the potential to help them increase revenues, personalize offerings and reduce marketing costs. However, there is a lack of adoption of this emergent mode of advertising among micro-enterprises. This study examined the underlying reasons for this lack of adoption using an exploratory factor analytic study based on an adaptation of the Technology Acceptance Model with the choice of technology as an additional factor. Data was collected in a survey involving 304 micro-enterprises by means of structured questionnaires and interview schedules. A majority of micro-enterprises sampled in the study were not aware of location-based mobile advertising. The study findings validate the technology acceptance model and also reveal that the choice of technology is an important factor influencing the intention to use location-based mobile advertising by micro-enterprises.