Training provision and the development of small and medium-sized enterprises

Abstract

There is almost complete support for the concept that an educated and trained workforce is a key element in the competitiveness of both individual businesses as well as the economy as a whole. Governments throughout Europe have introduced a number of policy measures to encourage the survival and development of small and medium-sized enterprises (SMEs) and have placed increasing emphasis on the importance of training provided by employers. This research provides a literature review of the factors influencing the provision of training by small firms and the impact training provision has on the performance of firms. The report is structured as follows: Introduction; Objectives of the study; Defining job-related formal training; Why do small firms provide less job-related formal training than large firms?; Provision of training: employer-based studies; Take-up of training: employee-based studies; Factors influencing training provision: a critique; Training provision and small firm performance; Training provision and small firm performance: a critique; Benefits associated with the take-up of training for individuals/employees; Conclusions and implications for researchers. Also included are two appendices: (1) Research studies examined which focused on employers; (2) Research studies examined which focused on individuals/employees.