Skills development and training in SMEs

164 Pages·2013·4.217 MB·English

by  OECD

OECD Skills Studies O
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Skills Development and Training in SMEs D
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Overview of training and skills development in SMEs S OECD Skills Studies
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PART I. Cross-country analysis of skills development approaches in SMEs d
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Chapter 1. Formal training and skills development: The state of play s Skills Development
Chapter 2. Skills development on the ground: Formal and alternative approaches by fi rms
Chapter 3. Innovators, exporters and new skills development and Training in SMEs
Chapter 4. Learning by doing – Best practices in training and skills development
Chapter 5. Skills and training ecosystems
PART II. Key highlights from case studies
Chapter 6. Training in SMEs in the Canterbury region, New Zealand
Chapter 7. Training in SMEs in the West Midlands region, United Kingdom
Chapter 8. Training in SMEs in the East Flanders region, Belgium
Chapter 9. Training in SMEs in the Zaglebie sub-region, Poland
Chapter 10. Training in SMEs in the industrial zone of Ostim, Ankara, Turkey
Chapter 11. Training in SMEs in the Montréal and Winnipeg urban regions, Canada
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Consult this publication on line at http://dx.doi.org/10.1787/9789264169425-en.
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84 2012 03 1 P

Local Economic and Employment Development (LEED)
Skills Development
and Training in SMEs
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OECD(2013),SkillsDevelopmentandTraininginSMEs,LocalEconomicandEmploymentDevelopment
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PREFACE
Preface
T
he main assets for any firm, especially small and medium sized enterprises (SMEs) are their
human capital. This is even more important in the knowledge-based economy, where intangible
factorsandservicesareofgrowingimportance.Therapidobsolescenceofknowledgeisakeyfeature
oftheknowledgeeconomy.
However,wealsoknowthatforasmallbusinessitisverydifficulttoengagestaffineducation
andtraininginordertoupdateandupgradetheirskillswithinthecontinuousorlife-longlearning
approach. Even in the 21st century there is still a huge difference between large firms and small
firmswhenwetalkaboutworkforcedevelopment.Smallbusinessescannotdoitalone–theyneed
toengageinpartnershipwithlocalprovidersoftrainingandlocalauthorities.Itisfromwithinthe
locallabourmarket’sneighbouringareasthatthesupplyanddemandoflabourshouldbematched
withtheskillsandtrainingrequired,butinmanycountriesalltoooftentheprovisionoftrainingfor
smallbusinessesisoverlycentralisedandsupplydriven.
The findings of this report show that skill upgrading mechanisms for SMEs should rather be
decentralised and demand-driven.This implies a major structural reform in the way in which the
interactionbetweenlocalauthoritiesofVocationalEducationandTraining(VET)andtheenterprises
arestructured.Wealsohavetoconsiderthatregionaluniversitieshavearoletoplayinthiscontext,
becausethethirdmissionofuniversities,afterteachingandresearch,consistsofsupportingthelocal
economiesoftheareainwhichtheyarelocated.Inparticular,thisinvolvessupportingSMEsintheir
innovation processes– another way of informal skills upgrading. In the relationship between
industryanduniversity,mostoftheinteractionoccurswithlargefirms.Itishightimeforuniversities
toengagealsowithSMEs.
The results presented in this report show the emerging direction that skills development
and training needs to take in order to stay relevant to SMEs.The report presents novel data from
1081 SMEs on the training activities of microfirms, a group of firms that all too often cannot be
captured adequately via statistical collections. Finally, the report calls for action by policy makers
and training providers. The work the OECD Centre for Entrepreneurship, SMEs and Local
Development,andtheLocalEconomicandEmploymentProgramme(LEED)havecarriedoutthrough
this study puts its finger on one of the critical factors that needs to be addressed if we want our
countriestostaycompetitiveandtapintonewsourcesofgrowthandjobcreation.
SergioArzeni
Director
OECDCentreforEntrepreneurship,SMEsandLocalDevelopment
SKILLSDEVELOPMENTANDTRAININGINSMES©OECD2013 3
ACKNOWLEDGEMENTS
Acknowledgements
D
rCristinaMartinez-FernandezdirectedtheLeveragingTrainingandSkillsDevelopmentin
SMEs“TSME”projectincollaborationwithexpertsfromsixcountries:ProfessorAnsDeVos
fromVlerickLeuvenGentManagementSchool,Flanders,Belgium;ProfPaulBelangerand
MsSylvieAnnHartfromUniversitéduQuébecàMontréal,Canada;ProfPaulDalzielfrom
Lincoln University, New Zealand; Mr Michal Kubisz from Poland; Ms Sirin Elci from
TechnopolisGroup,Turkey;ProfAnneGreenandDrLauraMartinez-SolanofromWarwick
University,theUnitedKingdom.DrMartinez-Fernandezhaspreparedthissynthesisreport
with research assistance and cross-country analysis by Dr Samantha Sharpe of the
UniversityofTechnologySydneyandDrTamaraWeyman.
Dr Sylvain Giguère, Head of the LEED Division and Mr SergioArzeni, Director of the
Centre for Entrepreneurship, SMEs and Local Development, provided valuable comments
and suggestions for the direction of the project, the analysis and the policy conclusions.
ThecountryDelegatestotheOECDLEEDCommitteeandtheothergovernmentofficialsin
the participant countries provided valuable insights for this project, particularly those
participating in the analysis: Mr Robert Strauss of the European Commission Directorate
GeneralEmployment,SocialAffairsandInclusion;MsAnnVandenCruyceoftheMinistry
ofLabourandSocialEconomyinFlanders;MrPaulBarkeroftheMinistryofLabour,New
Zealand;MrPawelChorazy,MinistryofRegionalDevelopment,Poland;MrMuratDemirez
of KOSGEB (Small and Medium Enterprises Organisation, Republic of Turkey), Turkey;
ProfessorMikeCampbell,DrLesleyGiles,MsKaterinaRudigerandMsAbigailGibsonofthe
United Kingdom’s Commission for Employment and Skills; and Mr John Atherton and
FrançoisLamontagneofHumanResourcesandSkillsDevelopmentCanada.
Damian Garnys provided support with preparing the survey platform and the
management of the electronic surveys. Helen Easton, Malika Taberkane, Thomas
McGarvey, Emma Mooney, Elisa Campestrin, Francois Iglesias provided secretarial
assistance for the project. Ms MelissaTelford undertook editing and formatting of the
report. Ms Malgorzata Jableka and Mr Przemysław Herman of the Poland Ministry for
Regional Development, Ms Tabea Kolbel of the OECD Business and Industry Advisory
Council (BIAC), and Mr Roland Schneider of the OECDTrade Union Advisory Committee
(TUAC)haveprovidedvaluableinputsandsuggestionsforthisreport.
Aswithallformsofempiricalresearch,theresearchteamisgratefulforthetimeand
thoughtsofover1000smallandmediumsizedbusinessesthatparticipatedinthesurvey,
the firms and organisations that participated in the skill ecosystem workshops, and the
managersofenterpriseswhomadethemselvesavailabletobeinterviewed.
4 SKILLSDEVELOPMENTANDTRAININGINSMES©OECD2013
TABLEOFCONTENTS
Table of contents
Acronyms ................................................................. 9
Executivesummary......................................................... 11
OverviewoftrainingandskillsdevelopmentinSMEs........................... 15
PartI
Cross-countryanalysisofskillsdevelopmentapproachesinSMEs
Chapter1.Formaltrainingandskillsdevelopment:Thestateofplay .............. 27
Companysizeandtrainingactivities....................................... 28
SMEparticipationinvocationaltraining. ................................... 29
Typesofvocationaltrainingprovided...................................... 31
ParticipationininitialVET................................................ 32
Reasonsfirmsmaynotprovidetraining.................................... 33
Processesoftrainingprovisioninfirms .................................... 34
Assessingskillsrequirementsandundertakingtrainingplanning ............. 35
Effectofpublicpolicymeasures........................................... 37
Conclusionsandpolicyimplications....................................... 39
Notes.................................................................. 39
References ............................................................. 40
Chapter2.Skillsdevelopmentontheground:Formal
andalternativeapproachesbyfirms ...................................... 41
In-depthanalysisofaccesstoformalandalternativetrainingactivities ........ 42
CharacteristicsoftrainingandskillsdevelopmentinSMEs ................... 43
Effectsofthefinancialcrisisonfirms’recruitmentandtrainingactivities ...... 50
Skillsidentificationinfirms .............................................. 51
Motivationandcollaborationfortraining................................... 52
Conclusionsandpolicyimplications....................................... 53
Notes.................................................................. 54
References ............................................................. 55
Chapter3.Innovators,exportersandnewskillsdevelopment .................... 57
Skillsdevelopmentininnovativefirms..................................... 58
Skillsdevelopmentandthemarketorientationoffirms...................... 60
Skills,sectorsandclusters ............................................... 62
Developmentofnewskills ............................................... 64
Conclusionsandpolicyimplications....................................... 68
References ............................................................. 69
SKILLSDEVELOPMENTANDTRAININGINSMES©OECD2013 5
TABLEOFCONTENTS
Chapter4.Learningbydoing–bestpracticesintrainingandskillsdevelopment ... 71
Casestudyinterviews ................................................... 72
Theimpactsofthefinancialcrisis......................................... 73
Trainingandskillsdevelopmentplans/structuresoffirms.................... 74
Formalindustrytraining/vocationaleducationandtrainingactivitiesinfirms... 77
Informal(KISA)skilleddevelopmentactivities .............................. 80
Motivationandcollaborationwithotherinstitutions......................... 82
SMEs’responsestoclimatechange........................................ 88
Conclusionandpolicyimplications........................................ 92
Notes.................................................................. 95
Chapter5.Skillsandtrainingecosystems...................................... 97
Theskillecosystemconcept.............................................. 98
WestMidlandsskillecosystem(UnitedKingdom)............................ 100
EastFlandersskillecosystem(Belgium).................................... 102
Canterburyskillecosystem(NewZealand).................................. 103
Zaglebieskillecosystem(Poland).......................................... 105
TheindustrialzoneofOSTIM,Ankaraskillecosystem(Turkey)................ 106
ManitobaandQuebec(Canada) ........................................... 108
Synthesisanalysis–trendsandconclusionsacrossallthecasestudies......... 110
Conclusionsandpolicyimplications....................................... 113
Notes.................................................................. 129
PartII
Keyhighlightsfromcasestudies
Chapter6.TraininginSMEsintheCanterburyregion,NewZealand............... 117
BackgroundtotheNewZealandcasestudy................................. 118
SpecificissuesforCanterbury ............................................ 120
Implicationsforpolicydevelopment....................................... 121
References ............................................................. 122
Chapter7.TraininginSMEsintheWestMidlandsregion,theUnitedKingdom..... 125
BackgroundtotheUnitedKingdomcasestudy.............................. 126
Implicationsforpolicydevelopment....................................... 128
Notes.................................................................. 129
References ............................................................. 130
Chapter8.TraininginSMEsintheEastFlandersregion,Belgium ................. 131
BackgroundtotheBelgiancasestudy...................................... 132
SpecificissuesforEastFlanders........................................... 134
Implicationsforpolicydevelopment....................................... 134
References ............................................................. 135
Chapter9.TraininginSMEsintheZaglebiesub-region,Poland................... 137
BackgroundtothePolishcasestudy....................................... 138
Implicationsforpolicydevelopment....................................... 139
Reference.............................................................. 140
6 SKILLSDEVELOPMENTANDTRAININGINSMES©OECD2013
TABLEOFCONTENTS
Chapter10.TraininginSMEsintheindustrialzoneofOSTIM,Ankara,Turkey...... 141
BackgroundtotheTurkishcasestudy...................................... 142
Implicationsforpolicydevelopment....................................... 145
Reference.............................................................. 146
Chapter11.TraininginSMEsintheMontréalandWinnipegurbanregions,Canada.. 147
BackgroundtotheCanadiancasestudy.................................... 148
Implicationsforpolicydevelopment....................................... 150
Reference.............................................................. 153
AnnexA.Contributors’biographies............................................ 155
AnnexB.Surveyparticipantcharacteristics..................................... 159
Tables
2.1. Outcomesofformaltraininginskillsareasbycountry.................... 46
2.2. KISAoutcomesbytypeandskilllevelofemployees ...................... 48
2.3. In-housemotivationsforskillsdevelopmentactivities.................... 53
3.1. Areasofskillsdevelopment,bydevelopmentmethodininnovativefirms ... 60
3.2. Outcomesforentrepreneurshipandgreenskills
byemployeeskillslevelandcountry ................................... 67
4.1. Numberofcasestudiesperparticipatingcountry........................ 72
5.1. RegionalSMEs’levelsofinteractionwithtrainingorganisations............ 112
B.1. Surveypopulationsandsources ....................................... 159
Figures
1.1. ParticipationratesofenterprisesbysizeinEurope(1999and2005) ......... 30
1.2. ParticipationinvocationaltrainingbysizeoffirminEurope(2005)......... 30
1.3. TypesofvocationaltrainingbysizeoffirminEurope(2005)................ 32
1.4. Apprenticesasapercentageofthelabourforce.......................... 32
1.5. Reasonsfornotprovidingtraining(Europe,2005) ........................ 33
1.6. Europeantrainingenterprisesusingexternaladvisoryservices(2005)....... 35
1.7. PercentageofEuropeanenterprisesassessingstafftrainingneeds(2005).... 36
1.8. PercentageofEuropeanenterprisesassessingfutureskillsneeds(2005)..... 36
1.9. Publicmeasures’impactsontrainingforEuropeanenterprises(2005)....... 37
1.10. EU27enterprisesprovidingfocusedtrainingforspecificemployees(2005)... 38
2.1. Formaltrainingparticipationbyvariousemployeegroups................. 44
2.2. Useofaccreditedtrainersandformalqualificationsbycountry............ 45
2.3. Informal/alternativetrainingparticipationbyemployeegroup............. 47
2.4. MainsourcesofKISAbycountryandskilllevelofemployees.............. 48
2.5. KISAcomparedtoVETforskilldevelopmentbyknowledgearea ........... 49
2.6. ImpactofGFContrainingactivities .................................... 51
2.7. Incentivesforskilldevelopment....................................... 52
3.1. InnovativeactivitiesinTSMEsurveyfirms .............................. 59
3.2. Participationinskillsdevelopmentactivitieswithininnovativefirms....... 59
3.3. Exportorientationsofsurveyedfirmsbycountry......................... 61
3.4. Marketorientationsoffirmsbylevelofinnovativeactivity ................ 61
3.5. Industrialcompositionsoffirmsbycountry............................. 62
3.6. Skillsoutcomesbyskillsareasinmanufacturingfirms(VETversusKISA) ... 63
3.7. Skillsoutcomesbyskillsareasinservicefirms(VETandKISA)............. 63
SKILLSDEVELOPMENTANDTRAININGINSMES©OECD2013 7
TABLEOFCONTENTS
3.8. Entrepreneurialandgreenskillsneedsbycountry........................ 64
3.9. FirmswithbetteroutcomesfromKISAingreenandentrepreneurialskills .. 67
4.1. Skillsrequiredbyfirms............................................... 73
4.2. Trainingandskillsdevelopmentplans/structures/approaches ............. 75
4.3. SMEs’trainingandskillsdevelopmentplans/structures................... 76
4.4. SMEs’formaltrainingandskillsdevelopmentmodel ..................... 80
4.5. Informal(KISA)trainingandskillsdevelopmentmodel ................... 83
4.6. Otherinteractionswithstakeholders................................... 84
4.7. Motivationandcollaboration–SMEmodel.............................. 88
4.8. Climatechange–companymodifications............................... 92
5.1. Skillecosystemdynamics............................................. 99
5.2. WestMidland’sskillecosystem........................................ 100
5.3. EastFlandersskillecosystem.......................................... 102
5.4. Canterbury’sskillecosystem .......................................... 104
5.5. Zaglebie’sskillecosystem............................................. 105
5.6. OSTIMskillecosystem ............................................... 107
5.7. Quebec’sskillecosystem.............................................. 109
5.8. Manitoba’sskillecosystem............................................ 109
5.9. SMEs’overalllevelsofinteractionwithtrainingorganisations ............. 110
5.10. RegionalSMEs’levelsofinteractionwithtrainingorganisations............ 111
8 SKILLSDEVELOPMENTANDTRAININGINSMES©OECD2013