Changing Cultural Attitudes towards Graduates in SMEs to Stimulate Regional Innovation

Abstract

<jats:p> Studies show that small and medium-sized enterprises (SMEs) are reluctant to employ graduates and to up-skill existing employees. The cultural barriers exemplified by this unwillingness limit the ability of SMEs to exploit new knowledge and innovate. In conjunction with its goal of producing a ‘knowledge economy’ the UK government is committed to a dramatic increase in participation in higher education. A sharp increase in the supply of skilled labour may result in the under-utilization of graduate skills, especially if SMEs remain reluctant to employ graduates. This paper investigates a collaborative initiative designed to change the mindsets and attitudes of SMEs towards graduates and of graduates towards SMEs. The initiative enables graduates and SMEs to develop an appreciation of potential mutual benefits through an interdependent relationship. </jats:p>

Exploring the drivers of firm‐level innovation in the construction industry

“…It also appears that high adopters are expressing a preference for youthful staff, over older staff with more industry experience who might not be as creative and flexible. The literature confirms the value of graduates to firm-level innovation outcomes (Bowen and Thomas, 2004).…”

Internships in SMEs and career intentions

“…In fact, a number of initiatives exist that deliberately target SMEs as internship destinations with a view to increasing subsequent graduate employment in such firms (Bowen, Lloyd, and Thomas 2004;Jones et al 2001; Graduate Talent Pool programme as cited in Kewin, Hughes, and Fletcher 2010;Otter 2005;Westhead 1998). However, evidence of the efficacy of these initiatives is weak with much emphasis being placed on employers' attitudes rather than on those of the students and graduates.…”

Recession: a chance for hospitality SMEs?

“…A wide range of initiatives has been introduced to encourage graduate employment in smaller businesses. For example, the Network75 and the STEP were introduced with the aim to subsidise graduate employment in small businesses (Westhead and Matlay, 2005;Bowen et al, 2004). However, statistical data shows that such initiatives failed to increase the likelihood of students ultimately obtaining employment in SMEs (Holden, Jameson and Walmsley, 2008).…”

“…I think…I'd be restricted within a small company... they don't have proper recruitment and most importantly… I'd prefer to go for a large company altogether or another hotel... as the can attract the most qualified people". This evidence may demolish any attempt to enhance graduate presence in SMEs and any effort to build strong links with HE leavers (Bowen et al, 2004).…”

“…The 'massification' of higher education (HE) combined with the changes in skills requirement within graduate occupations has necessitated constant readjustment between HE and graduate employment (Elias and Purcell, 2003;Harvey, 2001). In recent years a number of government funded, private initiatives and projects have been introduced to strengthen graduate representation in SMEs and boost economic growth (Holden et al, 2008;Westhead and Matlay, 2005;Bowen et al, 2004). This is clearly evidenced by the increasing supply of highly qualified graduates in the labour force, which has led some to assume graduate recruitment by SMEs is inevitable (Walmsley et al, 2006;King, 2003).…”