Journal of Small Business and Enterprise Developmentother concepts such as entrepreneurship, tacit skills and generic skills. There is little doubt though that all of these involve applied competencies that can be related to the world of work. As such, there is much rhetoric about the usefulness of workplace experience, based on the now well-established identification of experiential learning as the most effective means by which (particularly applied) skills are developed (Laurillard, 1993;Miller, 2002). In industries such as IT, a capable, creative and enterprising personnel base are said to be critical to organisational and sectoral development since these foster the potential for innovation and opportunity (Ratcliffe, 2009). For these reasons, and their potential in terms of economic development and national competitiveness in global industries, governments also are keen to encourage, and often support, work placements for students to improve employability and enterprise in technology sectors (e.g., BIS, 2011 in the UK).The current paper reports a study of the usefulness of work placements for IT students and for employers in the IT sector in the UK. Within a qualitative methodological framework, using both surveys and interviews, the study presents findings about how placements are perceived from students' perspectives and from the perspectives of employers. The paper commences with a review of the literature on employment in the IT industry, followed by a discussion of employability, enterprise and entrepreneurship and their role in the IT sector. Following an explanation of the methodology used for the empirical study, findings relating to three research questions are presented. The paper concludes with a discussion on implications for