“Training Strategies for Small and Medium Sized Businesses: One Size Doesn’t Fit All.”
The prerequisites for training vary in different businesses, with size being a significant factor. The smaller firms tend to conduct their training for their employees on a superficial level, having their entire focus on learning informal skills. Whereas in comparatively larger SMEs, there is a broader spectrum for the learning perspective. These companies want to obtain a more formal training with an objective of achieving standard skills. Thus, different firms have different training strategies regardless of the size. This paper analyzes these differences and identifies the challenges that may inhibit certain training strategies.
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According to research conducted by R. Rova and P. Chris (2006) on Canadian small and medium sized organization; the difference between the amounts assigned to training are not very noticeable. Small firms reserved only 20% of their operating expenses for training, whereas medium and large firms allocated 26% and 22% respectively, for training from their budgets. These results slightly differ from other findings; nevertheless, this population was segmented into trainers and non-trainers. The current studies that measure intensity of training are concerned with only those firms that actively participate in training their employees. On the other hand, the studies which were done previously included those firms as well which were never involved in employee training and development. Because of this, there is a significant difference between the results of previous and current researches. But, it is clear that since the past decades, the training incidence in smaller businesses is relatively lower than that of in medium and large organizations. According to W. Cecili and A. Neil, (1997) in order to classify and clarify the gaps between an entrepreneur’s concern regarding the matters of human resource management in new SMEs and the topics which were pointed out from the review of literature on the practices of human resource management in SMEs, a qualitative evaluation was used. The survey statistics from 156 entrepreneurs, focus