Over the past 12 months, one in 15 (7%) small to medium businesses in the East of England took on at least one new apprentice (compared to 16% nationally). And, these businesses are recognising the long-term benefits of the apprenticeship scheme – of those East of England-based SME owners who have taken on apprentices in the past, nearly a quarter (22%) have kept on at least half of them (compared to 43% nationally).
The survey also showed a rise in owner desire to bring apprentices into their company. One in five SME owners in the East of England (18%) said they plan to take on at least one apprentice over the next 12 months – similar to the overall national figure (25%).
However, small to medium sized business owners in the East of England also voiced concerns over barriers that were preventing them taking on more or any apprentices, with one in five (21%) saying that they were unable to afford them (14% nationally). A third (32%) cited the lack of need to bring apprentices in as their biggest barrier (28% nationally), while one in six (18%) held a preference to bring in workers who are already skilled (18% nationally).
Commenting on the findings Mark Farrar, Chief Executive of the Association of Accounting Technicians, said: “Becoming an apprentice brings a positive impact not only to the individual, but also to businesses and the wider industry that they are employed in. They are becoming increasingly popular for companies of all shapes and sizes, and also across all sectors – not just those traditionally associated with apprenticeship schemes such as construction and engineering – but also professions including accountancy and IT.
“Yet our findings also showed that three quarters of small businesses who have less than 10 employees have never taken on an apprentice at all, and therefore are failing to realise the benefits that these individuals – many of whom are keen to learn and hungry for career success – can bring to their company.”
The survey also revealed that one in three (36%) SME owners in the East of England believe that the ability to hire apprentices on a part time basis would help them bring more into their business (23% nationally). Over one in five (21%) cited less red tape surrounding the process of hiring apprentices as a positive consideration (19% nationally), while one in ten (11%) said that there should be local council or government initiatives in place to support businesses taking more apprentices on (17% nationally).
Mark Farrar added: “The attention being given to apprenticeships at present, led by regulation such as the new apprenticeship levy on businesses, the new National Living Wage and the Government’s target for 2020, is welcome. However, the message we are receiving from small businesses is that they need plenty of support and encouragement in order to play their own critical part in bringing more successful apprentices through the system. According to Department for BIS research out this week, only 19% of SMEs currently offer a formal apprenticeship scheme⁵.
“Apprentices deliver great value to the UK economy – a 2014 AAT report put the value at around £1.8 billion⁶ – and we urge small businesses to consider what role they can play within their organisations, as well as policy-makers to continue to smooth the company pathway for bringing apprentices in.”
¹ Source: Skills Funding Agency
² Source: House of Commons
³ Micro-businesses are defined as having less than ten employees, according to the EU
⁴ Of the 5.4 million SMEs in the UK, 24% are employers (Source: Parliament). 24% of 5.4 million is 1.296 million. 31% of SME owners who responded to our survey said they have taken on apprentices in the past (401,760); and of these, 43% said they have kept on at least half of them (172,757).
⁵ Source: Department for Business, Innovation and Skills, May 2016
⁶ Source: AAT, March 2014
|
AAT SME apprenticeship survey Considerations for taking on more apprentices |
SME owners – under 10 employees |
SME owners – more than 10 employees |
|
Ability to hire apprentices on a part-time basis |
24% |
21% |
|
Less red tape/hassle of employing an apprentice |
17% |
29% |
|
Local council/local government initiatives |
17% |
17% |
|
Support from Local Enterprise Partnerships |
12% |
24% |
|
Improved links with local further education colleges |
9% |
20% |
|
More awareness of how to get information about apprenticeship schemes |
10% |
13% |
|
Improved links with local schools |
7% |
7% |
|
Invitations to careers fairs |
3% |
13% |
Research carried out by Opinium Research between 21st and 28th April 2016. 501 online interviews were conducted with owners of UK businesses with a company size of 1-249 employees.
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For further information, please contact:
Adam Harwood/Jude Obi
Media Relations team, AAT
0207 367 1392/ [email protected]