FSB publish major Slims Consulting study into small business use of Modern Apprenticeships

Category : Contract
Date : 15/10/2009

The Federation of Small Businesses in Scotland today published the findings from a major study, carried out by Slims Consulting, which looked at the challenges facing small businesses when recruiting a Modern Apprentice.  The report highlighted a range of benefits that small businesses receive from employing a Modern Apprentice:

• Half of those businesses who had employed an MA in the last three years stated that doing so had helped to address skills shortages within the business.
• A third of businesses surveyed pointed to improvements in business performance, while a quarter identified a reduction on costs as a business benefit
• Around a fifth of businesses pointed to improved staff retention as a positive benefit from employing an MA

Nevertheless, the report uncovered some significant barriers that are preventing small businesses from fully engaging with the Modern Apprenticeships system:

• A lack of information on MAs was a major barrier to participation, with 56% of businesses stating they "wouldn't know who to approach for information on MAs"
• The cost of funding an MA was cited as a barrier by half of all businesses and age restrictions on MA funding presented challenges to a third of those surveyed
• Less than a fifth of all small businesses who were surveyed had recruited a Modern Apprentice over the last three years
• In the next twelve months only 9% of small businesses expect to recruit a Modern Apprentice

The key recommendations from the report included:

• Providing wage subsidies to small businesses to help them overcome the costs associated with employing an apprentice
• Introducing a national brokering service to connect young people and adults looking for an apprenticeship with businesses looking to recruit apprentices
• Delivering a clear "How to recruit an Apprentice" campaign providing simple advice, and examples of the support available to recruit an apprentice
• Increasing the proportion of small businesses recruiting an apprentice by 2011

Chris Brodie, Managing Director of Slims Consulting, said "The Scottish Government identified the creation of 7,800 MA places as a key part of its six-point economic recovery plan.  This report suggests that much more needs to be done to support small businesses to engage with MAs - with the lack of appropriate information on how to recruit an apprentice cited by 70% of the businesses surveyed."

The full report is now available to download on the FSB website - please see the related links below. 

You can also view press coverage of the report:

BBC news:  http://news.bbc.co.uk/1/hi/scotland/8307416.stm

Scotsman:  http://news.scotsman.com/scotland/Just-1737-of-firms-training.5734856.jp

STV news:  http://news.stv.tv/scotland/130223-minority-of-small-businesses-are-taking-on-apprentices/

Related Links : Modern Apprenticeships: The Small Business Perspective
Related Documents: None

Latest News

Archive News