Training and development play a vital role in the success and sustainability of Micro, Small, and Medium Enterprises (MSMEs). These enterprises are the backbone of economic growth, employment generation, and regional development in any country. However, MSMEs often face challenges such as limited resources, lack of skilled manpower, and low productivity. To overcome these limitations, an effective training and development system becomes essential. Training enhances the skills, knowledge, and efficiency of employees, while development focuses on improving managerial capabilities, leadership, and long-term growth potential. Together, they strengthen the overall performance and competitiveness of MSMEs. The primary significance of training and development in MSMEs lies in improving employee performance. Employees who receive proper training perform their tasks more effectively, reduce errors, and improve operational efficiency. Since many MSMEs operate with limited human resources, the quality of each employee’s contribution becomes crucial. Training ensures that workers are equipped with the latest technical skills, knowledge of production methods, and awareness of quality standards. This helps in achieving consistency in products and services, reducing wastage, and ensuring timely delivery to customers. For instance, in manufacturing-based MSMEs, training on machine handling, safety measures, and quality control can significantly enhance productivity and reduce accidents. Training and development also contribute to innovation and adaptability. In today’s rapidly changing business environment, MSMEs must be flexible and capable of adapting to technological and market shifts. Through continuous learning and development programs, employees become more open to innovation and can generate new ideas for product improvement, process efficiency, and cost reduction. Technological training helps MSMEs adopt digital tools, automation, and online business strategies, which are essential for survival in competitive markets. Training also enables employees to understand customer preferences and develop customized products, thus strengthening the enterprise’s market position. Another significant aspect is employee motivation and job satisfaction. Training acts as a motivational tool by demonstrating that the organization invests in its