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In today's world of fast-paced technology development, education and training are critical in ensuring the availability of an adequately skilled workforce and in turn in advancing productivity. Indeed, the literature reviewed points to a solid conceptual framework, which builds on the premise that human resources are the most strategic asset of any organization and need to be managed as a key element of the business development strategy. In Kosovo, the private sector is considered a key potential for the economic growth of the country. Yet, private sector development is facing a set of structural constraints that limit this potential. Among the most important ones is the quality of the formal education sector, generally recognized as poor and failing to produce the range of skills and quality thereof, required by the private sector. The lack of coordination between the two sectors in terms of skills required leads to a general mismatch between the skills produced by the formal education sector and the skills and capacities required for private sector development.