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Supporting skill development in SMEs 65

Technological innovation and the trend towards a more knowledge-based
economy have considerably deepened the challenges that SMEs face today.
While multinational and large companies have the capacity to design and
implement human resources strategies, for SMEs, developing learning
strategies at the workplace increasingly requires partnerships. In 2008,
the Small business act for Europe was adopted as a comprehensive policy
framework for European Union Member States, in which skill development
features among the five priority areas, and skill upgrading to support innovation
is one of the ten guiding principles proposed within a package of policy
4
measures specially conceived for SMEs ( ).
However, initiatives that promote lifelong learning are having difficulty
gaining hold in small and medium-sized companies. In many cases, SMEs
lack systematic human resources and business strategies, primarily focus on
their day-to-day business or simply do not have access to current information
on sector developments, new work processes that could improve their
productivity, and training opportunities available. Lack of human resources
management expertise within small enterprises, and of proper training
structures, makes it difficult for them to identify skills deficiencies, undertake
appropriate training interventions and evaluate the effectiveness of training
provided. Nor do they have the means to send their experienced staff and
workers on longer training courses. Guidance and information services are
particularly important to raising awareness among SMEs of funding and
training opportunities.
This chapter makes a case for linking competence development, even in
its most informal forms, with policy agendas to promote innovation in SMEs.
It discusses some of the key challenges to skill development and possible
solutions, illustrated with examples of measures that promote competence
development of staff in SMEs. It is argued that constraints on training in SMEs
are multidimensional and only through partnerships bringing together a variety
of enterprises, is the response likely to be comprehensive and effective.

4
( ) The European charter for small enterprises was approved by the EC leaders at the Feria
European Council on June 2001. Member States and the European Commission committed
themselves to take action. http://ec.europa.eu/enterprise/policies/sme/files/charter/docs/
charter_en.pdf [cited 17.12.2010].
Informal guidelines for its implementation can be found at:
http://ec.europa.eu/enterprise/newsroom/cf/itemshortdetail.cfm?item_id=3381
[cited 17.12.2010].