An evaluation was made of the training needs of the small and medium-sized enterprises (SMEs) in Portugal, Spain, Greece, and Italy and the potential of open, distance, flexible, and multimedia learning to meet those needs. The methodology included contacts with training providers, governmental institutions, and SMEs and circulation of questionnaires. Findings showed SMEs were geographically concentrated. More than 90 percent of enterprises were SMEs, and SMEs used conventional types of training courses almost exclusively. SMEs named three high priority needs: retraining of workers due to the introduction of new information and manufacturing technologies, training of managers, and training of young people for their first job within the enterprise. Most of those responsible for training in the SMEs were not aware of the existence of open, distance, flexible, and multimedia training. SMEs agreed that such training would be helpful due to the geographical dispersion of SMEs and lack of time and staff for training. They pointed out several problems related to use of these methods: lack of background education of the target groups, difficulties in using the new techniques, lack of user motivation, doubts about the potential of such training, and doubts regarding cost effectiveness. A search for examples of good practice of open, distance, flexible, or multimedia learning in SMEs found almost none. The SMEs were seen as an important potential market. (10 references) (YLB)