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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].