Lifelong learning and SMEs: issues for research and policy

Abstract

Research evidence suggests that SMEs are significantly less likely than larger employers to provide or fund formal training leading to qualifications for employees. The training (or more accurately learning) that does take place in most SMEs tends to be informal, on-the-job and related to short-term business objectives or problems. There are strong arguments to suggest that this type of approach is perfectly rational from the point of view of the small business, but may not produce the optimum level or mix of skills for the economy as a whole. Moreover, there is little convincing evidence to suggest that increased investment in formal training leads automatically to improved business performance for SMEs. Research findings raise a number of issues for policy makers and others who are trying to promote the concept of lifelong learning, and associated policy initiatives, to those who own, manage and/or work in SMEs. This paper suggests a number of directions that should be taken by researchers' policy makers, to promote lifelong learning among SMEs.

The Impact of the Perceived Usefulness of Workplace Social Networks Upon the Innovative Behaviour of Sme Employees: A Social Capital Perspective

“…These facets include the deficient amount of empirical research about SMEs regarding how to generate, maintain and transmit innovative knowledge (Johnson, 2002;Nelson, Brunetto, Farr-Wharton, & Ramsay, 2007;Scozzi, et al, 2005). This study is designed to examine the impact of three organisational factors upon the perceived usefulness of workplace social networks and the impact the perceived usefulness has upon the innovative behaviour of SME employees.…”

Using the critical incident technique to research decision making regarding access to training and development in medium-sized enterprises

“…However, SME employees are perceived by some commentators as a 'disadvantaged' group within the workforce (Devins, Johnson, & Sutherland 2004) because studies in several countries have found that smaller businesses are considerably less likely to provide formal T&D for their employees than larger businesses (Johnson, 2002;Kitching & Blackburn, 2002;Kotey & Folker, 2007;Smith & Billett, 2005;Storey, 2004). This discrepancy is attributable to several factors including the greater barriers to formal T&D faced by SMEs compared to their larger counterparts (Devins et al, 2004;Kitching & Blackburn 2002;Kotey & Folker 2007).…”

“…These barriers include the cost of such T&D and the opportunity cost of employees' time when they attend T&D events. Commentators also point out that SME owners/managers are reluctant to invest in external T&D because it usually does not focus on firm-specific problems, priorities and work practices (Gibb 1997;Johnson, 2002;Kitching & Blackburn 2002). In Australia, where 99.7% of businesses are SMEs (Department of Innovation, Industry, Science and Research, 2011), statistical evidence on the level of employer training is mixed, with some evidence suggesting that Australia is a poor performer by international standards in the provision of training (Smith & Billett, 2005).…”

Predictors of customer service training in hospitality firms

“…Despite calls for better approaches to improving small firm management generally (e.g., Down, 1999), there remains a general lack of understanding of the limited uptake of business improvement activities by owner-managers (Jameson, 2000;Johnson, 2002). This is the case even though, as Massey (2004) suggests, training in the small to medium enterprise sector is a huge investment in training by governments around the world.…”

“…Indeed, Johnson (2002) argues that small firms are behaving quite rationally in rejecting a strong focus on training activities. For instance, there is a well established chronic fear of staff mobility resulting in efforts to develop staff to be seen as a largely wasted investment (Patton and Marlow, 2002).…”