Software and systems engineering is distinct from other forms of engineering as it deals with an intangible product, where the progress in construction is not explicitly visible and team members often rely on the documentation of others to follow and review progress. Furthermore unlike traditional engineering disciplines, there is no single standardized unified process. The role of knowledge management in the software engineering literature is becoming more evident, as the software development activity is essentially a human knowledge intensive activity and is seen by many as a key factor. This paper discusses the role of software development knowledge management within software development process and specifically how software development knowledge is managed in software development in order to support software process improvement and the role of knowledge management in this. The authors present the results of a study of knowledge management process practices in very small software companies and discusses these under the major identified issues of: Communication; Learning and sharing; Documentation and Knowledge management process and commitment. The findings in this study give an insight towards knowledge management practices as they relate to software development process practices in very small companies and the important factors that must be considered to preserve knowledge and quality software.