Small firms need to decide when to focus on formal or informal training to improve performance. Training is crucial for small firms to make their employees valuable assets. However, research on the relationship between training and small firm performance has shown mixed results. Developing competitive advantages through employees is especially important for small firms, as they may lack other resources to compete with larger companies. Human resources management is key for small firms' survival. The study reviews previous research and suggests that the type of training and specific firm characteristics can impact small firm performance. Practitioners should consider these implications when designing training programs for small firms.