The propensity to participate in formal training programmes

Abstract

Purpose The purpose of this paper is to identify the factors that are likely to predict the likelihood of a small firm choosing to participate in formal training programmes. The objective is to inform public policy and practice with regard to what SMEs must do in order to realise the benefits of participating in formal training programmes like their counterpart large firms so as to remain competitive. Design/methodology/approach The study uses a logistic regression model to ascertain the critical factors that are likely to predict SMEs’ chances to engage in formal training programmes. The data that inform the logit model are based on a non-probability sample of 85 SMEs drawn from Accra, the capital of Ghana. Findings The major findings are that firm size and having younger owner-managers that are daring play a critical role regarding whether or not small firms in Ghana will offer themselves for formal training programmes. However, firm size, including having young and daring owner-managers reflect the internal resource capacity of a firm. The results imply that the internal resource capacity of a firm is critical in predicting whether or not a small firm will offer itself for a formal training programme, although the changing trends from the external environment are also crucial. Research limitations/implications As a result of the lack of an available sample frame, the study is based on a non-probability sample and so it must be noted that the results must be interpreted in that context. Besides, the study sampled SMEs located in Accra, the capital of Ghana, thus future research must extend the study to cover the rest of the nine regions in Ghana. A further analysis based on probability sampling is needed to strengthen the results. Practical implications Consequently for the growth and the development of SMEs in developing countries, the need for owner-managers to first focus on internal resource building is key. What this means is that owner-managers cannot ignore the conscious attempt to monitor, develop and grow their own internal resource strengths before that can be aligned to any changing trends from the outside environment. Originality/value The paper provides evidence as regards why most SMEs worldwide find it difficult to participate in formal training programmes. The findings seek to enhance the understanding of the barriers to the growth of SMEs’ line of research.