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CHAPTER 5
                       Supporting skill


                       development in SMEs





                     5.1. Introduction


                     Prior to the economic crisis, SMEs were the main drivers of economic growth.
                     In 2007, the non-financial business economy comprised almost 21 million
                     enterprises of which 99.8% were SMEs which provided approximately two
                     thirds of employment (Eurostat, 2009b). SMEs are not surprisingly referred
                     to as the backbone of the European economy. While employers generally
                     need support to develop strategies for skills upgrading, starting with an
                     analysis of their needs, as well as to take advantage of a whole range of
                     training incentives and identify relevant training providers and offers, this is
                     even more the case of SMEs.
                       According to the European SME Observatory’s last survey, the lack of
                     skilled labour is a problem for more than one third of SMEs in the European
                     Union; they struggle to fill their job vacancies and find the necessary human
                     resources ( ), because young graduates tend to gravitate around larger
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                     enterprises. Not only do they encounter difficulties in finding qualified staff
                     but also in providing them with adequate learning opportunities. Depending
                     on the sector, SME capacity to innovate may require that they master new
                     production and organisation processes, and that their staff possess a
                     complex set of skills. Internationalisation makes competence development
                     a necessity for SMEs to seize opportunities in foreign markets and to resist
                     global competition; acquiring competences in languages, marketing and
                     communication become decisive for business survival and success (European
                     Commission, 2009e, p. 69).









                     ( )   The European SME Observatory survey 2007 can be downloaded from Internet:
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                       http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/sme-observatory/index_
                       en.htm#h2-2007-  observatory-survey [cited 17.12.2010].
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