Project motivation: needs and challenges that will be solved. In its Council opinion on Latvia's convergence programme for 2012-2016 (Brussels, 19 June 2013), the EU Council indicated that there are concerns that vocational education and training is failing to provide sufficient quality of skills for the workforce and there is limited availability of quality work-based training. In Latvia employers are dissatisfied with the skills of the workforce and, therefore, there are vacancies at times when the unemployment figures are high. There is a need for an increased number of students pursuing vocational education.- There is a need for a workforce that is equipped with high-quality / relevant skills so that the overall efficiency of the economy is improved. Problem of low motivation among students to attend VET. In the beginning of Sept. 2013 the number of students accepted on VET courses was almost by a thousand less than planned. There is a need to develop functioning motivation system so that the number of students applying to VET does not drop dramatically in 2 years’ time when the scholarships from ESF are removed. So far, only big companies have showed interest in participation in the dual VET system in Latvia. However, the system cannot work without smaller businesses joining in. High level of youth unemployment. Project deliverables: 1. Report on Factual Findings on the Final Financial Report – Type I; 2. Minutes of consortium monthly meetings; 3. Final report; 4. 36 Interviews; 5. 12 Discussions; 6. Quality review; 7. Closing conference; 8. Online publications; 9. Discussion recordings; 10. Sustainability plan. The biggest impact of the project will be an increased cooperation and understanding between VEIs and businesses, especially SMEs. This will lead to an increased capacity of VEIs to provide education that matches the current needs of the labour market, thus increasing the prospects of young graduates of vocational schools to gain employment.