In 1996, small and medium-sized enterprises constituted 99% of all businesses in the United Kingdom in all but the electricity, gas, and water supply sector, providing 46% of nongovernment employment. SMEs' concern with day-to-day demands leaves them with limited time and resources to consider their training needs. Although providing support and training for SMEs is not a lucrative source of income for further education (FE) colleges, it is essential because developing a learning culture in SMEs is critical to securing British competitiveness in global markets. Good relationships with training and enterprise councils are important, as are partnerships with other agencies providing support. The serial recommends that FE colleges must address their image with SMEs, clarify the benefits of training to firms and firm profitability, and consider the effects of seasonal and shift work when marketing and delivering training for SMEs. Among the report's recommendations are: a strategic and structured approach to meeting the needs of SMEs should be balanced with flexibility and speed of response and the use of technology to reach people and access learning may provide appropriate delivery methods in the medium to long term. The importance of networking and informal learning is also be emphasized. (Appended are the following: audit research tool and example; criteria for college action planning pro forma; and two case studies.) (MN)