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Abstract

As the government strives for full employment, the development of the employed workforce continues to emerge as a policy priority. Smaller businesses account for the vast majority of enterprises in the economy and their reluctance to become engaged in external training activities continues to present a policy challenge. This article draws on a survey of 211 employers to explore the impact of the European Social Fund (ESF) Objective 4 (O4) Programme in Britain (1998-2000). ESF O4 supported the development and delivery of a range of training and development interventions predominantly aimed at developing human resource capacity and training and development activity in SMEs. The article examines the provision of training in participating SMEs and the impact of the O4 intervention on training and business performance. The article concludes with the implications of the analysis for policy makers.

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Training and Development Activities in SMEs

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