Effective engagement with SMEs Nicola McLelland, Research and Policy Manager

SMEs in Scotland Approx 280,000 businesses in Scotland 94% are Micro = < 10 employees 5% are Small = employees 1% Medium = employees They represent: – 99% of all enterprises – 53% of total employment

SMEs in Scotland Highly diverse group – Compete in local and/or local markets – some use simple technology and some are cutting edge – ‘one size fits all’ approach is not appropriate Issues to consider –Cost of training –Disruption – creates staffing issues as difficult to plan staff absences –Owner/manager

SSC Activity 24 Sector Skills Councils (SSCs) which relate to around 90% of UK workforce Central role is understanding employers skills challenges SSCs have developed a range of activities to engage and support employers –Increasing employer demand for highly skilled workforce –Encouraging employers to provide training and development opportunities for their workforce –Providing training that will support this employer demand –promote available and relevant learning opportunities to their employers SSCs are therefore central to employer skills activity and provide a clear channel to and from employers

Regular methods of engagement These include: Face to face meetings with individual employers Convening sector forums attended by a range of employers Working with trade associations and industry bodies Through websites and newsletters Running workshops for employers Work with Trade Unions to promote skills issues to employers/employees Development of new/revised qualifications to ensure they meet industry expectations and needs Training DVD produced for Scottish employers

ConstructionSkills Team of 10 Company Development Advisors (CDAs) actively promote and work with Construction companies to identify their management training needs. Management and Leadership Diagnostic Toolkit, signposts them to relevant training and to review the effectiveness of it. –simple online questionnaire which asks individuals to state their job, nature of their work and their skills –Covers questions on skills required for leadership as well as technical skills –it produces a report which shows how their skills match the needs of the construction business –process is computer based but requires no specialist equipment or skills other than being able to connect to the internet Company Development Advisors across Scotland, work with federations such as the Federation of Master Builders to deliver Business Improvement workshops for their members.

Lantra Operate the One Stop Shop with Learndirect Scotland to enable employers to find provision to meet their needs Response to industry demand that all training information on training be accessible from one central point. Deliver workshops on: –Rural Women: promotion of business management skills involving workshops supporting rural women focusing on the benefits of business –Succession planning: facilitate the delivery of succession planning and business skills workshops and seminars aimed at up skilling the next generation of young farmers

e-skills e-skills UK, work with over 200 small businesses and leading industry experts, has developed the Business IT Guide. Online tool designed to help small businesses identify ICT that could help their business. The Guides: –Increase confidence by providing quality, trusted, relevant advice on demand –Improve awareness and understanding of the business benefits of different technologies –Improve competence by providing targeted information written by professionals –Aid successful action and implementation through guidance and support The Guide is evolving, and e-skills UK could extend the functionality to include a skills utilisation guide for small business owners and managers.

Institute of Leadership and Management Membership is a method for exchanging experiences and seeking advice - both virtual and physical. Linked-In community for members to discuss problems – mix with those in industry. Most ILM programmes are delivered ‘in-house’ – tend to be medium and large businesses unless a consortium of SMEs get together. Open programmes attract small and micro businesses i.e college/private training providers. Leeds Metropolitan University leadership and management programme: –SMEs given £500 unconditionally plus £500 match funding for one key manager –Action learning sets with 6-8 SMEs managers and a LMU facilitator for 6-12 months –Combines networking with learning in problem driven environment

Summary Getting time away from the day-to-day business can be difficult - engaging employers online can be effective but not always possible. Events/conferences that only invite SMEs don’t have a ‘hook’ to encourage them to attend – needs to add value for them to take time out. ‘Piggyback’ onto events/forums/meeting that already exist which SMEs attend. Don’t assume you know what SMEs want – ask them what they want. Make use of industry newsletters/websites.