According to Ecorys’ annual report on the situation of SMEs in 2012, the crisis of 2011/12 affected the sector and the instable economic environment continues to pose severe challenges to them. Nevertheless, they still form the backbone of the EU economy – accounting for 99.8 per cent of non-financial European enterprises in 2012. They have to struggle to improve their performance, competitiveness and innovation on the ever-changing, instable market. One of the most important assets in organizations is knowledge. Despite this, many SMEs are not doing enough to effectively manage the knowledge that exist inside and outside the company for its competitive advantage. The aim of the project was to transfer the Enterprise 2.0 Knowledge Management to SMEs. To meet this overall goal, we developed a methodology for implementation of multimedia and Web 2.0-based knowledge management system in SMEs. We also provided a technological infrastructure that allowed employees create, disseminate, share and apply the knowledge, anytime and anyplace, within or outside the company. Finally, the consortium members promoted the results of the project among their clients, national and international partners, and their wide networks of contacts (companies, educational bodies, training organizations, non-profits, etc.). The KM 2.0 Methodology is available for any organizations interested in implementing multimedia and Web 2.0 tools for knowledge management.The project resulted in development of an integrated methodology for multimedia-based knowledge management in SMEs and helped SMEs to benefit from new technologies more effectively.