A new report has found that the small business sector in England has the potential to double the number of apprentices it takes on to well over two million if the Government can get the incentives and package of support right.
The Federation of Small Businesses (FSB) report on the lack of Government’s new apprenticeship proposals Make or Break: Getting apprenticeship reform right for small businesses found that one in four FSB members (24%) already employs an apprentice, but a further quarter (24%) would consider taking one on in the future.
If this reflects the situation of the rest of England’s 4.7 million small firms, there is potential to deliver well over a million new apprenticeships with smaller employers.
The Federation says that among the barriers to achieving this is a change that requires small businesses to contribute towards the cost of training their apprentice which is expected to result in a fall in the number of businesses offering apprenticeships.
To limit this, it is calling on Government to provide a more generous small employer incentive than is currently proposed to ensure extra support is appropriately targeted at the smallest firms that can least afford the extra upfront costs of taking on an apprentice.
Mike Cherry, national chairman at the Federation of Small Businesses (FSB), said: “Smaller businesses are taking on more apprentices than ever before. What’s more, a quarter of our members say they are considering employing an apprentice in the future. This presents a huge opportunity and is great news for vocational training, which has become an increasingly attractive option for young people put off by the rising cost and uncertain returns of a university degree.
“We are at a make-or-break moment. We need the Government to hit the right balance between incentives and support. While many small firms are committed to apprenticeships, many more continue to be worried about the time and personal commitment required.
“Ministers need to focus on three main areas: more targeted and localised information for businesses with high growth potential, specific and practical guidance on how a smaller company can take on an apprentice, and a more generous package of incentives and support for those which do. Getting this right is key to the successful reform of the apprenticeship system.”
