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The economy of the Palestinian Territories (PT) is small, poorly developed, and highly dependent on Israel; at the same time, the land is limited, Israel controls 80‐85 per cent of the Palestinian water, and there is large‐scale unemployment. Faced with this situation, small and micro‐enterprises have come to play a critical role in the economy of the PT. Donors, the Palestinian Authority (PA), and UNRWA have recognised that many of the managers suffer from managerial weaknesses, and training is one of the long‐term keys to promote the development of small and micro‐enterprises and alleviate the problem of persistent unemployment in the PT. To support the peace agreement, the International Community promised to support the Palestinian economy. Part of this aid has been spent for small and micro‐enterprise development, and for establishing managerial training programmes. These programmes aim to encourage economic development of the PT, through supporting small business education and entrepreneurship training. These programmes suffered from various problems, such as lack of professional trainers, the majority of the managers did not attend the training programme courses, some of these programmesmissed funding. Therefore, some training programmes were closed during the last two years. On the other hand, the managers of small businesses still suffer from various managerial problems. However, this article presents a description of the current situation in PT. Especially, the economic and managerial situation, particularly for the SMEs and TPs in the PT.

In recent years, management training development has secured an increasingly important place in the life of the business managers. After the peace agreement, to find a solution for the apparent lack of managerial strength, many management‐training programmes (MTPs), of an off‐the‐job nature, have been established in the Palestinian Territories. The main objective of this paper is to explore the obstacles and weaknesses facing MTPs for business managers' development. The paper achieves this objective by dividing the identified weaknesses into four broad categories, namely, MTPs weaknesses, obstacles specific to the Palestine situation, and trainers' and managers' weaknesses. The primary data has been generated through a survey of the SME managers who have participated in MTPs in Palestine. To demonstrate the effects of MTPs on small businesses, different but relevant sets of variables were employed and subjected to statistical analysis. It is concluded that although there are major obstacles and weaknesses facing the development of SME managers, the findings, however, can be used to enhance the effectiveness of the future MTPs and indeed the performance of SMEs as a result. They also firmly point to the need for further management development in Palestine.

In recent years management training development has secured an increasingly important place in the life of the business managers. In the Arab countries, the management and development efforts have largely been found to be somewhat inadequate and ineffective. Many management‐training programmes (MTPs), of an off‐the‐job nature, have been established in the Palestinian territories (PT), after the peace agreement, in order to find a solution for the apparent lack of managerial strength, especially amongst the small and micro‐enterprises (SMEs). Discusses the contribution of these programmes towards the development of these managers by dividing the managerial skills offered into three main categories. The primary data have been generated through a survey of the SME managers who have participated in management development training programmes in Palestine. The results of the study highlighted the question of the importance, interrelationship and interaction of managerial skills used for developing SMEs.

This paper assesses the contribution of management training and development programmes (MTPs) to the development of managerial skills in small and medium enterprises (SMEs). Different sets of variables were used to explore the managers’ skills development by dividing the managerial skills into three main categories: self, people, and task‐related skills. After the peace agreement, many training programmes were established in the Palestinian Territories in order to solve managerial weakness, and these almost always use off‐the‐job training. A combination of survey questionnaire and interviews were used to collect the primary data (field study). The target respondents for this first time study were the managers of SMEs who participated in the MT courses. The results of the study highlighted the presence of clusters of managerial skills for SME managers and supported the evidence in the literature suggesting that managerial skills should be analysed as a system of interrelated skills.