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Service Oriented Architecture (SOA) is an architectural approach that can be shared and reused. Shortage of studies, research thrust and limited expertise in the area of SOA keeps the application of SOA in Small and Medium Enterprises (SMEs) limited. Also in a country like India, whose major economy is dependent on the small and medium enterprises, the Indian Government is promoting the growth in this sector. Successful examples of individual automated enterprise services and traditional ERP implementation systems exist but there is a lack of holistic, integrated technical solutions that can be applied in small and medium size enterprises. In this paper we propose a five layered SOA based architecture that can integrate all activities comprising Supply Chain Management (SCM), Customer Relationship Management (CRM), Technical and Enterprise Applications Tools according to SMEs requirement. We also compared our model with traditional ERP systems and other similar approaches and found the proposed model is efficient, cost effective and competent with similar existing solutions.