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This publication reports on the progress of a range of research initiatives funded through the Small Business Fund to address the barriers encountered by small and medium enterprises (SMEs) in participating in industry training, and identifies issues for further development. The Tertiary Education Commission (TEC) established the Small Business Fund Action Research Project to enable industry training organisations (ITOs) to test initiatives focused on addressing specific barriers. Projects were undertaken by the apparel and textiles, aviation, tourism and travel, and retail ITOs. These projects revealed that engaging SMEs in formal training is complex and challenging, but the barriers to engagement can be overcome, and some key lessons included that: time and support is everything; follow-up is essential; and training requires a sense of partnership. TEC aims to develop a range of approaches and models to act as examples for ITOs in their work with SMEs.