Commission staff working document
: TRAINING IN SMALL AND MEDIUM-SIZED ENTERPRISES
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- 6.2: GUIDE FOR TRAINING IN SMEs
- 6.3: TRAINING — A KEY TO SUCCESS AND ADAPTATION
- 6.4: FINANCIAL AND ORGANISATIONAL MEANS
- 6.5: HR AND SKILLS DEVELOPMENT POLICY
- 6.6: LESSONS LEARNED
6: TRAINING IN SMALL AND MEDIUM-SIZED ENTERPRISES6.1: SMEs IN EUROPESmall and medium-sized enterprises (SMEs) are the backbone of the EU economy. In 2008, according to Eurostat figures,65 of nearly 20.8 million companies in the EU, 99.8 % were SMEs, defined officially in employment terms as those with fewer than 250 employees — see table 2.3. SMEs are further divided by the EU into medium-sized enterprises, with 50-249 employees, small enterprises with 10-49 employees, and micro enterprises, with fewer than 10 employees. Micro enterprises made up 91.8 % of EU companies in 2008. In 2008, SMEs accounted for around two-thirds (67.4 %) of all employment by enterprises, while micro enterprises employed around three out of 10 (29.7 %) of the total. The relative importance of SMEs — and of the various size categories of SME — varies considerably between countries and between economic sectors. Average firm size is smallest, in employment terms, in Greece and Malta, followed by the Czech Republic, Italy and Portugal. It is largest in Slovakia, followed by Germany, Ireland and the UK. In sectoral terms, in 2008 SMEs accounted for 88 % of all employment in construction, and 83 % in hotels and restaurants. However, they employed only 22 % of the workforce in electricity, gas and water supply, and 31 % in mining and quarrying. Table 2.3: Enterprises and occupied persons, by size class, in the non-financial business economy, EU 27, 2008 estimates
Source: Eurostat, as elaborated by EIM Business & Policy Research for European Commission (2010), ‘European SMEs under Pressure, Annual Report on Small and Medium-sized Enterprises 2009’, Directorate-General for Enterprise and Industry. SMEs are a key driver of economic growth, innovation, employment and social integration, and the European Commission sees it as vital to mobilise and adapt to small business all existing policies and tools, at both European and national levels. The Commission has developed and implements a range of policy measures specifically meant to assist SMEs in Europe.66 These policies aim to create conditions in which small firms can be created and thrive. If the EU is to achieve its goals of speeding up economic growth and creating more and better jobs, it will be SMEs which will play the most important role, in particular because these firms are the main source of new jobs in Europe. In order to better integrate the SME dimension into EU policies, a special SME envoy67 was appointed within the Commission’s Directorate-General for Enterprise and Industry. In addition, in June 2008, the Small Business Act for Europe was adopted as a comprehensive policy framework for the EU and its Member States. Box 2.8: EU measures to help SMEs The European Commission has developed and implements a range of policy measures specifically meant to assist SMEs in Europe. These policies are aimed at creating conditions in which small firms can be created and can thrive. EU policy in relation to SMEs is concentrated in five key areas:
The Small Business Act (SBA) for Europe, adopted in 2008, aims to put into place a comprehensive policy framework for the EU and its Member States. The SBA is an ambitious package of policies designed to put SMEs’ interests at the centre of decision-making. At the height of the economic and financial crisis, SBA implementation in the first year focused delivery on the following priorities:
6.2: GUIDE FOR TRAINING IN SMEsA recent specific initiative by the European Commission to assist small business is a Guide for training in SMEs, published in June 2009.68 The guide illustrates how training and skills development can be successfully developed and implemented in SMEs despite the internal and external barriers that these firms face in this area. It is based on work carried out in the context of the Restructuring Forum on the adaptation of SMEs to change, held in November 2007, and was prepared by the Directorate-General for Employment, Social Affairs and Inclusion, in cooperation with other Commission Directorates-General, key institutions in European training policy and the European-level social partners. Based on an evaluation of practical experience and innovative solutions to address major challenges and problems (with references to 50 cases of good practice), the guide for training in SMEs provides a comprehensive and systematic overview of concrete solutions and key elements in various areas where SMEs typically face problems and obstacles in preparing, implementing and managing training appropriately. It groups the various challenges and solutions around three basic aspects:
For each topic covered, the guide highlights major lessons to be learned, crucial factors of success and aspects of transferability. In the next sections, we summarise some of the main challenges and solutions identified by the guide. Box 2.9: Other studies on the skills needs of SMEs Report on the identification of future skills needs in micro and craft (-type) enterprises up to 2020 The European Commission, Enterprise and Industry Directorate General has commissioned a major research study focusing on the identification and analysis of skills needs in micro and craft (-type) companies.69 The research study aims to contribute to a better understanding of current and future skills needs of micro and craft enterprises in Europe and to mainstream better the needs of these enterprises in existing policy initiatives at EU level aiming at anticipating and matching labour market and skills needs, identification of skills needs and mismatches, and strengthening the links between vocational education and training (VET) and the labour market. This study is regarded as a part of the New Skills for New Jobs initiative and it should support the implementation of the Small Act for Europe. This study identified future skills needs in micro and craft enterprises up to 2020 in three important economic sectors: construction, food and private personal/health services. Recommendations are summarised with a focus on three main areas of practice: future skills forecasting, communicating future skills needs and integrating future skills into training programmes.
The EC-funded ‘Lifelong Learning 2010’ research project70 analysed participation by employees of small and medium enterprises (SMEs) in formal adult education (education and training in the regular system of schools, universities and colleges). Based on 89 case studies of SMEs in 12 European countries (covering 113 employees) the researchers developed a typology of adult participation in LLL, identifying five basic types of participation patterns:
The research provides a deeper insight into the individual and organisational interests of adult education, as well as on the interaction (and barriers) between workplaces and educational institutions. OECD project leveraging training: skills development in SMEs The OECD LEED programme is conducting a project to identify ways to overcome the barriers to workforce development faced by SMEs. The project aims to analyse formal education and training programmes and alternative ways of learning through knowledge-intensive service activities (KISA). The project examines local skills and training ecosystems of selected countries; it also analyses the relevance of green skills for SMEs, making an important contribution to the OECD green growth strategy by exploring the transformation and greening of SMEs towards a low-carbon economy.71 6.3: TRAINING — A KEY TO SUCCESS AND ADAPTATIONThe skills, motivation and activation of employees are crucial preconditions for the sustainable success, productivity and innovation of enterprises. However, SMEs in Europe — and in particular micro and small enterprises — face many challenges and difficulties with regard to continuing training and the development of their human resources. For example:
The situation of SMEs with regard to training is characterised by a paradox. On the one hand, continuing training and lifelong learning (for both workers and managerial staff) are regarded as crucial elements of competitiveness for SMEs against the backdrop of globalisation. On the other hand, however, statistics show that continuing training and qualifications are less likely to be available to employees working in SMEs than to those in large companies. 6.4: FINANCIAL AND ORGANISATIONAL MEANSA lack of financial means and organisational reasons are the first obstacles to training faced by many SMEs. There are, however, many examples of good practices that can help SMEs, alone or in cooperation, to develop training without disturbing their organisation too greatly. E-learning or distance learning, for instance, are particularly well adapted. Thanks to information and communications technology (ICT), training can be provided at the time that suits managers and employees best. To help employers to launch training, there are several tools offering organisational advice that seem particularly adapted to SME culture. Box 2.10: Supporting training in French SMEs In France, Agefos-PME is a collection body dedicated to SMEs. It has developed several innovative tools for SMEs, with the aim of facilitating their access to training. Among the initiatives proposed by the regional agencies of Agefos-PME is the ‘Training Pack’ (Pass’ Formation). This is a series of training modules sometimes wholly financed by Agefos-PME for its members (with the participation of the ESF, the State and local authorities) — or offered at a very low cost (€ 200 a day for example). More importantly, Agefos-PME covers 100 % of wages during training and 100 % of any additional costs (travel and accommodation). In order to overcome organisational barriers, the training modules are short, lasting a maximum of five days. The contents of these training modules have been specifically designed for SMEs and focus on areas such as management, HR, commercial issues, languages, and law. Regarding the lack of financial means, SMEs can be helped in several ways, for example through the sectoral joint bodies that collect special taxes for training measures in some Member States, or other public organisations. However, it is also important to support SME managers, employees and entrepreneurs by other means, for instance in looking for public subsidies or European funding, as access to information is often complex. Public aid can also help SMEs with related organisational matters. For instance, a company may be reimbursed for the absence of an employee. Many other initiatives exist that can address the issue of cost for SME managers and entrepreneurs, such as training vouchers or qualification cheques. SMEs do not generally have the means to send their experienced staff on longer training courses. The training programmes and methods available on the market are too often unsuited to the size and needs of this type of company. Short training programmes (a few days that can be split over the whole year) that are ‘straight to the point’ can be very helpful from this perspective. It is important to note that training does not have to be expensive to work well. Informal or on-the-job forms of training can also address the needs of skills and competence development, if they are well organised and their needs and objectives are clearly identified. All over the EU, initiatives are being implemented in order to adapt the content of training to the needs of SMEs. Examples include: the development of quality labels and the enhancement of skills through informal learning or ‘communities of practice’ for SMEs in the tourism industry; the upgrading of employees’ skills in the textiles and leather industry to help companies facing internationalisation; or increasing employees’ ICT-related skills in SMEs. 6.5: HR AND SKILLS DEVELOPMENT POLICYAlthough human resources and the skills base are the most important factors in competitiveness and success for many SMEs, HR and skills development are often not organised in a systematic way or with a medium- and long-term approach. This situation can be helped by the use of external advisory services, diagnostic tools and other practical instruments. External public or private actors can offer guidance and access to financing and aid for HR and skills development, which may target people with specific needs on the labour market, such as less qualified workers, older workers or women returning to employment. In the frequent absence of personnel resources in SMEs, external or internal facilitators, advisers, coaches, enablers and counsellors can help to develop a culture of training and, beyond that, a culture of anticipation and management of change. An example of an innovative awareness-raising approach is to appoint ‘ambassadors’ with the task of promoting training to help keep older workers in employment. Equally, training for managers and entrepreneurs should be given close attention. Perceptions of training needs For many reasons — including a lack of opportunities, information and resources — in many SMEs training is not perceived as important by managers, entrepreneurs and workers alike, and it is often thought that existing training programmes are not suitable for SMEs. This makes it important to stress that there are many examples of good practice with regard to making suitable training and skills development possible in SMEs. For example, specific tools adapted to SMEs can identify a company’s training or skills needs, while initiatives can inform SME managers, entrepreneurs and workers about existing opportunities, thereby raising the awareness of training opportunities. Resource pooling and cooperation Involvement in networks, cooperation or cluster activities with other SMEs can enable companies to engage more effectively in ongoing training and competence development. Such networks can help them to find access to information, increase awareness of the importance of anticipating change and develop training. Networks can be organised on a local basis, generally with a sectoral dimension, while wider communities of practice can also be set up through online forums. An example of a network approach is the state-funded Skillnets in Ireland, which supports the development of enterprise-led learning networks dedicated to the promotion and facilitation of in-employment training and upskilling as key elements in sustaining national competitiveness. Attracting young workers Increasingly, SMEs are facing significant challenges due to demographic change. An important issue is that many qualified young people prefer large companies, and consequently SMEs need to do more to attract and retain young workers. There are a range of innovative experiences in the EU that illustrate how they can do this. For example: joint apprenticeships programmes can be developed on a territorial basis, corresponding to the needs of SMEs; networks can be set up to exchange good practice in the successful management of demographic change; or practical courses to attract younger workers can be introduced in sectors facing recruitment difficulties. 6.6: LESSONS LEARNEDThe guide for training in SMEs shows that there is a wide and rich diversity of practices and experiences in this area in Europe. However, in the end, they all lead to the same conclusion: if SMEs see training simply as an obstacle course, the obstacles can be easily overcome. However, this can be achieved only if SMEs receive help, support and guidance in approaching training measures. Many SMEs are confused and not that well informed about the large range of training opportunities in their countries. The existence of a large body of different training programmes has often hindered entrepreneurs and employees in SMEs in making decisions on training. Further, organisational barriers, a lack of financial resources or a mismatch between actual training needs and supply are widespread barriers. However, as highlighted by the guide, innovative solutions exist, addressing the common constraints of SMEs with regard to training. While each company’s situation varies according to its sector, size and region and there is no universal solution to all their problems, each case has its solution. The factors of success identified in the guide (see box 2.11) highlight important lessons that may facilitate better and more successful training methods in the future. Box 2.11: The key messages of the guide for training in SMEs, drawn from experience across the EU Anticipation. In a rapidly changing economy, anticipation of skills and competence should become second nature to SMEs. They need to be equipped with the appropriate tools and advice in human resource management. Social dialogue. Anticipating skills and competence implies a considerable degree of dialogue between workers and employers. Assessment tools can offer an initial basis for this dialogue to be implemented. The proximity between managers/entrepreneurs and employees in SMEs provides many opportunities for a common construction of company plans with regard to human capital. Assessment. A permanent, lifelong, culture of assessment should be promoted. In the context of a knowledge society, skill needs are rapidly changing. Needs assessment is therefore a first step to anticipating needs and relevant social dialogue. Evaluation of the results regarding the chosen objectives is also an element of a permanent culture of assessment. Modifying the perception of needs is an important challenge, but European SMEs can do it. Collective approach. SMEs should not be left alone: they are often at the centre of networks, including other SMEs and larger companies, public institutions in the field of training or employment, professional bodies and federations, and social partners. These networks need to be active. In view of the current economic crisis, a collective investment in SMEs will prepare them for the future. Guidance and tools. When they step forward beyond their initial reluctance to receive external guidance offered by professional or public actors, SMEs can benefit from tailor-made tools to overcome obstacles (financial or organisational) in the field of training. Whether they are within or outside a company (or both), facilitators and enablers correctly trained to do their job can be promoted in their function. Opportunities. Plenty of opportunities exist for SMEs, but the right information is often lacking. SMEs might not always be aware of these opportunities, considering them inaccessible or not intended for them. This is not the case. When correctly equipped and enabled, SMEs can more easily take advantage of these training opportunities, eventually resulting in new economic and social opportunities for the company and its workers. Directory: pub -> ECD ECD -> Commission staff working document ECD -> Table of contents I instruments Error: Reference source not found ECD -> Table of annexes annex I: Glossary 4 ECD -> En commission of the european communities brussels, 12. 12. 2008 com(2008) 853 final annex annex II to VIII ECD -> Report from the commission to the european parliament and the council european community safa programme aggregated information report ECD -> Report from the commission european community safa programme ECD -> Commission of the european communities brussels, 24 2008 ECD -> Commission staff working document ECD -> Communication from the commission to the european parliament, the council, the european economic and social committee and the committee of the regions ECD -> Annex I iccat species Download 1.43 Mb. Share with your friends:
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