Management development in SMEs: what needs to be done?

Abstract

This paper examines the state of play regarding management development in SMEs. Additionally, it discusses government initiatives which seek to develop SME competitiveness through encouraging increased take‐up of management development. Helping SMEs to develop and grow is important to the national economy and a number of government initiatives are now in place to meet this need. Developing people in line with business objectives is a priority which the government is promoting through the Investors in People process and the acquisition of National Vocational Qualifications. However, the style of SMEs is focused upon short‐term activist priorities of obtaining business while the longer term strategic view, of which people development is a significant part, tends to be an overlooked area. The paper reviews the current literature regarding the contribution of SMEs to the UK economy and the relationship of management training to SME performance. The authors identify a need for research investigating the level of awareness amongst SMEs of the opportunities available to them for developing their staff, their attitudes toward the range of initiatives and options, and the degree of take‐up. A greater understanding of the adequacy and appropriateness of government approaches to SME development would allow agencies which can support SMEs, such as Training and Enterprise Councils, Regional Development Agencies and providers of training and development, to target their assistance more effectively.

Corporate Social Responsibility That “Pays”: A Strategic Approach to CSR for SMEs

“…This suggests that more established SMEs may have lost their agility to adapt to market trends and to competitors’ strategies and that they may not have the capabilities to make the best of implementing CSR activities. Interestingly, studies have found that “a company's attitude to growth…as well as the structure, skills and age profile of management…dominates its ability to grow” (Smith and Whitaker , p. 179). It is also reported that particular routes to growth may act as a barrier with firms characterized as small and young most likely having to grow organically, in contrast to older, more mature business, most likely to grow through acquisition (Delmar and Davidsson ).…”

“…Age captures the number of years since the company was established and accounts for the extent to which companies have developed in‐built capabilities to manage effectively their resources and thus achieve high growth. Studies show that while initially age may improve firm growth, in time, older companies tend to grow slower than younger ones, as a result of lack of flexibility and agility (Smith and Whitaker ).…”

Human Resource Development in SMEs: A Systematic Review of the Literature

“…Bishop (), Deakins et al . () and Smith and Whittaker (), for example, found that they place less value on formal practices. They may also lack an awareness of the value that formal HRD practices can offer to an SME (Walker et al ., ).…”

Small business owners: too busy to train?

“…This is despite owner-managers recognising the importance of developing and maintaining management skills (Loan-Clarke et al, 1999;Smith & Whittaker, 1996).…”