This report analyses the businesstraining and business services sectors in Timor Leste, andrecommends a number of initiatives for the strengthening ofthese important sectors of the economy. Small, Medium SizeEnterprises (SMEs) have had limited access to information,and there seems to be a lack of understanding andentrepreneurial discipline. Entrepreneurs need to be moreaware of the necessity of generating a cashflow in order tomonitor economic activity, and keep a business solvent. Thisshortcoming is linked to cultural characteristics, but it iscompounded by a historical reliance upon government. Asenterprises learn from their mistakes, they are becomingmore self-reliant. New enterprises understand that survivaland success is based upon entrepreneurial discipline and aclear understanding of market forces.