Training Provision and the Development of Small and Medium-Sized Enterprises. Research Report No. 26.

The literature on the training provided by small and medium-sized enterprises (SMEs) in Great Britain was reviewed to determine the extent and quality of training available and the link between training provision and small business performance. Smaller firms were less likely to offer training, and the training they did provide was generally inferior to that provided by large firms. The relative reluctance of small firms to provide training was attributed more to supply and demand factors than to small firm owners' ignorance of the benefits of training. No well-conducted research was found showing that provision of training by SMEs enhanced subsequent performance by the firm providing the training. Studies of individuals exiting from training courses generally reported high levels of trainee satisfaction. Policymakers were cautioned to avoid statements implying that training has a clear "bottom line" impact when attempting to encourage SMEs to offer training, and they were advised that increasing the quantity of trained labor in the economy may require a larger financial contribution from employees, who are the primary beneficiaries of training. (The bibliography contains 168 references. Appended are tables detailing the methodologies and findings of 37 studies of training in SMEs.) (MN)