The purpose of this paper is to define the impact of organizational culture on the effectiveness of training and performance of employees of small and medium enterprises. The key to a successful organization is a culture based on a firmly held and widely shared set of beliefs supported by strategy and structure. The culture of the organization defines the proper way of behaving within the organization, and consists of shared beliefs and values. Because industries and situations differ significantly, there is no single culture template that meets the needs of all organizations. Managing culture requires focused efforts to maintain elements of culture that support organizational effectiveness. A positive and strong organizational culture promotes productivity, engagement, and an improved employee experience. This research focuses on an organizational culture that helps employees increase their abilities, knowledge, and skills. Research on this paper will show whether organizational culture has an impact on the effectiveness of training, and thus on employee performance with special emphasis on small and medium enterprises. The paper uses a qualitative secondary research based on the available relevant literature and will highlight the current knowledge on this topic. The aim of this paper is to understand the importance of culture in the organization, its impact on the implementation of training programs, their effectiveness and determine whether it affects the performance of employees of small and medium enterprises in general. Based on this research, the impact of culture on employee performance and performance will be defined with special reference to small and medium enterprises, and some general conclusions will be drawn.