VET and small business: Review of research

The aim of this paper is to summarise the major research conducted in Australia since 1990 into small business and vocational education and training. Small business is a focus of attention because it accounts for approximately 51 per cent of private sector employees. Yet, the Australian Bureau of Statistics (ABS 1995) reveals that only 18 per cent of small business employers report some training expenditure, compared with 79 per cent of employers who employ 20-99 people and 97 per cent of employers who employ more than 100 people.

This paper summarises research activity under the six headings identified in the Small Business Training Policy Framework (ANTA 1996): role of government, approach to training, delivery, information and networking, credibility and quality of training and equity.

Role of government

The early part of the 1990s saw a number of major reports commissioned which focussed mainly on management education and training. They looked at topics such as the level of managerial skills of the business owner; the status of small business management education and training; strategies to improve the quality of training undertaken by small business; and the impact of formal education and management training on survival of small business. During this period, discussion started to emerge also about the need for small business employees to receive training. The strong message that came through these reports is that the training system was failing to meet the needs of small business and the system needed to pay more attention to marketing its products. In addition, there were numerous disincentives or barriers to training faced by small business: cost, location, scheduling, quality and relevance of training and the fact that small business tended to employ people with the skills they needed. By the mid 1990s, there was increasing recognition of the fact that training for small business was generally informal, conducted on site by experienced workers and included advice provided by accountants and bank managers.

Since the establishment of the Australian National Training Authority in 1992, small business needs have been a priority and a variety of practical measures have been established to encourage small business to participate in accredited training. The government has adopted the role of promoting training and is pushing the training system to make itself more relevant to small business. Further research needs to be done to evaluate the effectiveness of the various schemes and programs which have been set up and to find out if training reform is having an impact on workers in small business.

Approach to training

The ANTA Small Business Training Policy Framework takes the term 'approach to training' to refer to the creating of partnership arrangements between small business clients and training providers and the fact that training providers must make their product relevant to small business and its goals. The main focus of research in this area has been identifying barriers to business being involved in training, identifying the training needs of managers and employees and reporting on case study research of small businesses and the approach to training being taken. The main approach to training in small business would appear to be informal, which is not a component of training reform. Further research could be directed at finding out more about the extent and effectiveness of the widespread informal approach to training and learning in small business and whether the training 2 system is recognising this in the service it is promoting and providing. Moreover, the question could be raised as to whether accredited, structured training is appropriate for small business.

Delivery modes suitable to small business

The ANTA Small Business Policy Framework emphasises the need for training that is learner centred and directed, as well as being short, sharp, specific and built around team and group learning.

Much of the research with regard to delivery restates the need for training providers to change how they operate. While many writers have described the needs of small business, there is little research reporting on innovative methods that have delivered what small business wants. A recent development has been research on workplace-based training. However, this research appears inconclusive because it seems that formal workplace training does not sit comfortably with small business. The success of workplace-based delivery can depend on the commitment of players, the ongoing support and the characteristics of the learning environment at work, about which little is known. Further research needs to be conducted into the workplace as a learning environment, how people learn and the evaluation of approaches to learning that are currently being used in small business. There is no published research on assessment practices in small business.

Information and networks

The Small Business Training Policy Framework draws attention to the importance of accessible, timely and relevant information for small business and the need to develop and foster networks.

The research in this area makes reference to the role that business advisors such as accountants and bank officers play in providing information and advice to small business. Research has also lead to pilot projects which establish mentors or networks for certain target groups and report on the success of these approaches. Although much of the research into small business refers to the need to promote a training culture, it is unclear which bodies are responsible for this and what are effective means of providing information about the training system. Little research has been undertaken on the extent to which small business uses networks, which networks are used and what value they provide.

Credibility and quality of training

For small business, credibility of training is tied up closely with the skills and knowledge of the trainer and whether the trainer understands and has experience of small business. Quality refers to the question of relevance and whether training complies with quality assurance systems.

At present, there is considerable research activity taking place in the area of professional development of training providers and models of best practice suited to small business. However, to date, there has been little published research on the credibility of training providers in the eyes of the small business operator/owner. There is also a lack of evidence about what steps the training system is taking to make sure that training complies with quality assurance systems and meets the needs of small business.

Equity

It is part of the Small Business Policy Framework that training meets the needs of the diverse and multi-cultural small business workforce. To this end, major research has been conducted to find out more about the vocational education and training needs of:

• women in small business
• the small business rural sector
• non-English-speaking small business owners
• people with a disability in small business

There does not appear to be a report on the vocational education and training needs of Aboriginal and Torres Strait Islander people in small business. Further research is also needed to identify the VET needs of part-time and casual workers in small business and the needs of the self-employed and those in family employment.