Purpose: To explore the influence of competitive strategy in entrepreneur-led SMEs and the effects on e-learning HRD. Design/methodology/approach: Performance consulting company reviews provide holistic information on nine case studies on small and medium sized enterprises drawn from the printing, agri-foods and media industries. Findings: Competitive strategy is a major influence on an entrepreneur and value chain investments, such as e-learning HRD. E-learning benefits and limitations are recognised, and influences categorised through a four-learning influences model. Embedded e-learning activities in value chain activities are highlighted. The perception of the entrepreneur, the physical adoption of ICT, the company culture, and the presence of knowledge workers appear to determine the adoption of e-learning rather than industry sector. Practical implications: Competitive strategy appears as key influence for entrepreneurs in their choice of prioritisation of resource for value chain activities, including e-learning. E-learning embedded into work processes is becoming widely used by knowledge workers, but the informal nature of learning means that it is not recognised immediately as a HRD support activity by line managers or employees. Certain knowledge workers are developing personal learning environments. Originality/value: Analyses the influences of competitive strategy on the secondary value chain activities of e-learning HRD from the perspective of an entrepreneur directing an SME. Knowledge workers use informal, embedded learning in these cases, without its explicit recognition as e-learning. A tension appears to exist between the perception of some entrepreneurs of the Internet as a leisure activity for employees and its use by knowledge workers as a catalyst for informal learning. (Contains 1 figure and 2 tables.)