Management development in SMEs: what needs to be done?

Abstract

This paper examines the state of play regarding management development in SMEs. Additionally, it discusses government initiatives which seek to develop SME competitiveness through encouraging increased take‐up of management development. Helping SMEs to develop and grow is important to the national economy and a number of government initiatives are now in place to meet this need. Developing people in line with business objectives is a priority which the government is promoting through the Investors in People process and the acquisition of National Vocational Qualifications. However, the style of SMEs is focused upon short‐term activist priorities of obtaining business while the longer term strategic view, of which people development is a significant part, tends to be an overlooked area. The paper reviews the current literature regarding the contribution of SMEs to the UK economy and the relationship of management training to SME performance. The authors identify a need for research investigating the level of awareness amongst SMEs of the opportunities available to them for developing their staff, their attitudes toward the range of initiatives and options, and the degree of take‐up. A greater understanding of the adequacy and appropriateness of government approaches to SME development would allow agencies which can support SMEs, such as Training and Enterprise Councils, Regional Development Agencies and providers of training and development, to target their assistance more effectively.