THE ROLE OF THE TECs IN SUPPORTING SMEs IN ENGLAND

Abstract

Before assessing the role of the Training and Enterprise Councils (TECs) in supporting small and medium‐sized enterprises (SMEs) in England, this paper highlights the importance of the SME sector and then briefly outlines the development of official policy towards SMEs over the past two decades. The introduction of the TECs in 1989 encompassed a number of features of the UK Government's SME policy. The TECs have been given wide‐ranging and challenging responsibilities. Whilst there is no clear demarcation line between the TECs' enterprise and training activities, this paper is more concerned with their role in promoting ‘enterprise’ in SMEs. A broad brush survey of TECs conducted for this paper reveals that the different TECs have adopted different approaches to fulfilling this role. The paper then describes an initiative offered by one particular TEC; the scheme in question enables SMEs to finance the use of consultants to assist in business planning and management development activities. The operation of this scheme encapsulates many of the key issues involved in SME policy, such as how to select companies for assistance and how to design an integrated programme of SME support. Finally, the implications of these findings for the future of the TECs are explored, with the caveat that the role of the TECs will inevitably mirror the (constantly evolving) government policy towards SMEs.