They are also good for teaching grammar. Teachers can point out grammar structures used in the story. For instance, if it's a story with a lot of past tense verbs, students can practice identifying and using the past tense correctly. Moreover, short stories can inspire students to write their own stories. After reading some, they can get ideas about plot development, character creation and so on.
In addition, small and short stories can enhance students' comprehension skills. Teachers can ask comprehension questions about the story, like what the main idea is, what the characters' motives are. This helps students to learn how to analyze a text. Also, they can be used for reading aloud practice, which improves students' pronunciation and intonation.