This publication seeks to identify the key determinants of apprentice and trainee employment in Australian small and medium-sized enterprises. The investigation is based on data collected in the ABS Business Longitudinal Survey over the period 1994-95 to 1997-98. The study concludes that there is no evidence of a single business characteristic acting as a trigger for small and medium-size enterprises to provide apprentice and trainee training although there are a number of characteristics which affect an enterprise's propensity to undertake apprentice and trainee training, including the number of employees and the rate of expansion of the enterprise.