This chapter describes and discusses the role of e-learning for small and medium-sized firms' (SME) business development and does so specifically in university-SME interaction related to sparsely populated regions. It is based on the idea that e-learning may provide a valuable means for developing knowledge creation and expansion beyond its educational connotation. A university-SME interaction focusing on business development of firms in remote geographical areas provides ideas on the benefits of e-learning not only for the interaction to be realized, but for the creation of flexibility, interactivity, and the bringing down of guards among the participants. The chapter contributes to previous research through tying together ideas on e-learning, university-SME interaction and business development, and by extending the e-learning concept. Practically, the case study may function as the inspiration for further initiatives.