Due to the 4-seasons it is not always the best of temps to me for Schatzie to have learned to go pee/poo outside, so we started her from the get go on pee pee pads.
I promise you, they do "get it" after awhile...It's probably just a maturity thing. Schatzie when she was younger made mistakes by missing the pad and going right next to it but she pretty much has it on "target" now. She is just about 9 months and 7.5 pounds.
In the beginning we never let her have free run of the house either. She had to stay on "tile" floor unless we could watch her CONSTANTLY. As she matured she "earned" her trust with the entirety of the house.
Please, keep working with your babies and they will get it...Hang in there and don't give up and it only works to scold them when you see them "doing it in the act".
Just wanted to give you hope to all this!! I completely understand your frustration and even adult dogs have their "accidents"..
It will get easier
