One of the barriers to enterprises employing ten or less workers very small and micro enterprises (VSMEs) potentia l ly making important contributions to meeting South Africas targets for reducing poverty and unemployment and increasing broad-based economic empowerment is skills development. Nonetheless, in this volume, which draws together two studies for the Department of Labour, a picture of the dynamism of many such firms emerges. Considerable learning is going on amongst the highly diverse VSME population and the challenge for the state lies in how to support what is already going on.