Around a quarter of small business owners say they would like to take on an apprentice – but say there are barriers in the way.
The Federation of Small Businesses (FSB) has published what it calls ‘a landmark report’ on the possible reforms of the apprenticeship system that it says could drive increased take-up among SMEs.
The ‘Make or Break’ report found that one in four FSB members (24%) already employ an apprentice, but a further quarter (24%) would consider taking one on in the future.
The FSB says that if this reflects the situation of the rest of England’s 4.7 million small firms then ‘there is potential to deliver well over a million new apprenticeships with smaller employers’.
The report says more information and financial support are needed to help SMEs understand how apprenticeships work, what the costs are, what the benefits might be, and how to go about finding the right talent to help their business.
The creation of a specific SME-focused web portal to help businesses get information, more involvement of SME owners in shaping apprenticeship policy, greater locally-focused skills support and working to improve transparency of costs are all suggested as possible measures to drive apprenticeship take up in SMEs.
The FSB pinpointed the most significant barriers:
- The general lack of information about apprenticeships, both in terms of content and navigability of resources, is hindering their growth.
- Only half (50%) of surveyed small businesses were aware of the Apprenticeship Grant for Employers of 16 to 24 year olds (AGE Grant).
- A third of small businesses do not feel apprentices leave school with the appropriate skills for work, with 32 per cent saying that the quality of apprentices is a major challenge.
- A third (31%) worry about day-to-day management of an apprentice alongside other business responsibilities.
- A quarter (26%) say they lack time to devote to train an apprentice.
FSB National chairman Mike Cherry said: “Smaller businesses are taking on more apprentices than ever before.
“What’s more, a quarter of our members say they are considering employing an apprentice in the future.
“This presents a huge opportunity and is great news for vocational training, which has become an increasingly attractive option for young people put off by the rising cost and uncertain returns of a university degree.
“We are at a make-or-break moment. We need the Government to hit the right balance between incentives and support. While many small firms are committed to apprenticeships, many more continue to be worried about the time and personal commitment required.”