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This report presents the main findings, conclusions and recommendations from a study of informal and unstructured learning in small firms. The project involved research reviews, expert seminars, company visits and a follow-up survey. Twenty-six people - a mixture of employees and owners - took part in structured interviews about their learning activities at work. The companies were small and medium-sized enterprises (SMEs) in a variety of occupational sectors. The research found a wide range of formal and informal learning of different types taking place in the firms participating in the study. Many interviewees talked about the value of prior experience equipping them to do their jobs and the phrases 'trial and error' and 'learning by mistakes' were mentioned frequently. There was also a preference for individual coaching and mentoring, rather than for more structured learning leading to national qualifications. The research considered the types of learning that take place in the workplace. It found that a range of methods of on-the-job learning were used and that a clear distinction between formal and informal learning is difficult to define and unhelpful. Many participants used a combination of formal and informal methods to learn how to do their job more effectively and typically built on initial formal learning. Understanding the context in which small businesses operate emerged as a crucial factor in supporting better learning. Providers should also consider the essential characteristics of small firms when developing learning opportunities within them. Many companies had difficulties finding specialist training specifically related to the needs of their staff. To overcome this problem, businesses often bought in experience and expertise because it was a faster and more realistic option. Informal learning is an important source of development for people in small companies. Better support for informal learning in SMEs may therefore be as important as exhortations to take up more formal learning opportunities. An important message from the research for colleges and training providers is that, because many SMEs now occupy increasingly specialised markets, there is a narrowing band of generic training needs. A broadening band of specific needs are not being catered for.