My truck runs smoother and gets better mileage on non-ethanol gas (even though it was one of the year models designed to run E85). Small engines don't have the benefit of CPUs and 'on-the-fly-adjustability'. It's a simple air/fuel ratio thing. If you re-jetted the carb and tweaked it, it would run OK (not the best, but OK), but the cost wouldn't be worth it. Best to just buy the ethanol-free.
*Funny thing is, you can get better performance and horsepower from high content (high octane) ethanol....BUT, the engine must be tailored specifically for that fuel to gain the benefits.....and, the mileage will suck with ethanol.