Existing process models for software development are too resource intensive for small organisations. This paper proposes EProMS, an e-commerce based process model which takes into account the limited resources of these organisations. It distributes the software development process over several small organisations. These organisations, then, co-operate through an e-commerce layer to produce market-driven software. On competitive markets the distribution allows organisations in the co-operation to specialise in specific aspects of software development. This helps them to reduce costs and time to market and achieve a high degree of users’ satisfaction.