The training needs of Connecticut's small businesses and their employees are not being adequately met. Small businesses face an economy placing increasing demands on them: a worsening labor shortage, an aging work force, and changing skills in the workplace. Gaps in private and public sector training programs impede small businesses from meeting the training challenges these demands present. This report identifies the following key training issues: on-the-job training lacks structure, public sector programs are fragmented and reach few people, training programs are too costly, and small companies do not have the resources to develop in-house training programs nor to purchase outside training programs. The report makes recommendations to address these issues. It calls for action in four areas of small business training: (1) to improve the content of public and private sector training programs for on-the-job, basic skills, customized, and formal training; (2) to strengthen the delivery of these programs; (3) to enhance the communications on training goals and programs between suppliers and consumers of training and between employers and employees; and (4) to increase the coordination of training activities in the state to fill gaps and avoid unnecessary duplication. The report's methodology (literature review, public attitude surveys, and in-depth follow-up interviews) is described. Twenty references and a list of experts interviewed are appended. (KC)