Abstract: “The staff training is becoming one of the main brakes on SMEs development. The modern era is characterized by the constant need for expertise and training in all areas of business activities. Companies must organize their knowledge, actively manage it and develop the ability to constantly evolve the organizational knowledge. While large companies increasingly recognize the necessity of building their own knowledge database, small and medium sized enterprises (SMEs) are often doomed to outsourcing - the use of existing knowledge outside the company, where they often encounter difficulties estimating external sources of knowledge, and articulating their needs for knowledge. This makes their quest for knowledge difficult, and minimizes the application of knowledge in the development of their business. In this section, the author examines how it can support the awareness of the need for training and proactive approach to knowledge (knowledge-based view) as a driving force for innovation, g”

Keywords: SMEs, Training System, Croatia