Education, Training and Skills
Small businesses across the region report skills shortages as being a major barrier to business sustainability and growth.
Training of course is the natural solution to skills shortages, but many firms experience difficulties in accessing training that is relevant to their needs.
The FSB's survey 'Lifting the Barriers to Growth in UK Small Businesses 2008' revealed that:
- Basic skills deficiencies in numeracy and literacy continue to be a concern for many small firms, and skills shortage in new staff have a more negative impact on performance than skills shortages in existing staff
- Growth orientated companies highlighted skills shortages to a greater extent than non-growth orientated firms.
- Growth focused firms tend to use more firm-specific and firm based training, of the 'learning by doing' approach or 'on the job' training. They also tend to be happier with the outcomes of the training they engage in. In particular, they find greater benefit in staff motivation, productivity and profitability.
- These types of firm-specific and firm-based training are more likely to be provided informally within the firm itself, or by private trainers. Correspondingly, these types are less likely to come from publicly funded sources or be qualifications-based.
- The capacity of firms to deliver their own training, however, is limited, especially within the smallest firms.
- The Train to Gain programme is not currently perceived my many small firms as helping meet their training needs. This may again be a consequence of the fact that such needs are being met by work-based and firm-specific activities. This highlights the issue of how to provide accreditation that acknowledges the achievements of small-firm employees, whilst also assisting training activities that are of benefit to small businesses themselves.
Work of the East Midlands Area Policy Unit
The FSB's East Midlands Policy Unit liaises with key regional bodies such as emda, the Learning and Skills Council, and the Employment Skills and Productivity Partnership to highlight skills shortages within the region, and to try to ensure that publicly funded training schemes fully meet the needs of small businesses.
We are also beginning to work with the new National Apprenticeship Service, where we will be advising them of the need for any new apprenticeship programmes in skilled trades and professions. Over the next few months we are also planning to work with emda, the Higher Education Funding Council for England and other agencies on Graduate Internships.