Although large companies are more apt to provide training than smaller companies are, size is becoming less of a predictor of training than complexity of the environment, degree of market competition, and internal makeup of the company. The increasingly technological nature of the workplace has prompted many small businesses to increase their spending on training. In most of the 6 million U.S. small businesses with fewer than 50 employees, training is usually offered in house on an informal and sometimes random basis. Forms of employer-provided training include the following: on-the-job training by mentors and co-workers; seminars and speakers; classroom instruction; one-on-one training; training partnerships with other businesses and suppliers; and vendor training provided by suppliers. Because many small companies lack technology specialists or time for technology specialists to train other employees, approximately one-third of all small businesses resort to outsourced training delivered by training companies or educational institutions. Trainers in small businesses face time, space, and staff restrictions because of limited funding for their efforts, as well as attitudinal obstacles. Small businesses can enhance employee training by adopting mentoring, coaching, and peer review practices. Innovative compensation practices have proved effective in prompting employees of small businesses to seek and continue training. (Contains 16 references.) (MN)