SMEs are not the same as large firms

Much of my work at the moment is focused in two different areas – the training and professional development of teachers and trainers for the use of technology for teaching and learning and the use and understanding of labour market data for careers counseling, guidance and advice. However as data increasingly enters the world of education, the two areas are beginning to overlap.

This morning I received an email from the European Network on Regional Labour Market Monitoring. Although the title may seem a little obscure, the network, which has been active over some time, organises serious research at a pan European level. Each year it selects a theme for research, publications and for its annual conference. Over the last year it has focused on informal employment. Next year’s theme is Small and Medium Enterprises (SMEs) which they point out can be viewed as perhaps the most vibrant and innovative area of the European economy. However, when it comes to researching and understanding SMEs it is not so easy

A number of European or national statistics exist to analyse SMEs’ but they generally use the same categories as for large firms and are, in general, constructed from a large firm perspective or in any case not from a framework based on SME characteristics. Many academic papers focusing on SMEs show that they cannot fully be understood using the same categories as with large firms. The general idea is that firstly, SMEs are same as large ones, just smaller. Secondly, the assumption that they will grow up to become Midcaps, then large firms, is incorrect. Torres and Julien (2005) start their article explaining that “Most, if not all, researchers in small business have accepted the idea that small business is specific (the preponderant role of the owner-manager, low level of functional breakdown, intuitive strategy, etc.)”. A 2019 French publication directed by Bentabet and Gadille tackles the issue of SMEs focussing on their specific “social worlds”, their “action models and logics”, while elsewhere the influences of institutional logics and multi-rationalities of SMEs have been considered. The entry of social worlds highlights the great diversity of micro-enterprises and SMEs, which often makes it difficult to analyse them. As a counterpoint, specific knowledge of these companies is required because they are at the heart of the debates on flexibility, labour market dynamics, skilled labour shortage and disruptions in the vocational training system.

SMEs will be the focus for the next Annual Meeting of the Regional Labour Market Monitoring to be held in September 2020 in Sardinia

An action research approach to studying apprenticeship in Spain

helmet-1636348_1920This is a new paper, written by Graham Attwell and Ana Garcia about the new apprenticeship system in Spain. The research was sponsored by the International Network on Innovative Apprenticeship (INAP) and the paper will be presented at the “Crossing Boundaries in VET: Social Dimension and Participation” conference in rostaock in August. We will provide a downlaodable version of the paper once we have overcome our fight with Word templates.

Abstract: This paper, explores the outcomes of a short action research project, undertaken in Valencia Spain in 2016, into the introduction of the new apprenticeship qualification, FP Dual. The hypothesis underpinning the work was that the development of apprenticeship programmes in Spain needs to build on existing cultural and organisational norms and requires an in-depth understanding of critical factors in the perception of apprenticeship by different actors. The research was undertaken through a series of over 30 in depth interviews with different actors. The paper explains the background and methodology, before outlining the major issues that emerged from the research. The conclusion suggests the need to address cultural and educational issues that the introduction of a Dual System system raises, including the relations between companies and education institutions, the prestige of vocational qualifications, the training of teachers and trainers and issues of pedagogy and curriculum.

Keywords: Action research, Semi structured interview, Apprenticeship, Policy, Spain

1         Introduction

The Spanish economy is still struggling from the impact of the ‘crisis’, with persistently high levels of youth unemployment and low skills levels. Unemployment is especially high for those leaving school early with no qualifications and for recent graduates (Esenciales Fundación BBVA, 2016).

A series of reports have suggested that moving beyond the school based, initial vocational training system to adopt a dual system based, apprenticeship model offers benefits to the economy, to companies and to individuals (Wolter and Mühlemann, 2015).

However, other research points to the difficulties in transferring models developed in one culture – such as the German Dual apprenticeship system – to other cultures such as Spain (Pilz, 2016). These include the weakness of trade unions at a company level, educational polarisation between vocational and higher education, resistance at company level, resistance by families and young people, variation in co-ordination between actors from region to region, complex interactions between national and regional levels, the government, social partners and employment organisations and, of course, the ongoing economic crisis (Cedefop, (2015).

The Spanish government has established an experimental apprenticeship framework, FP Dual, with pilots running in parallel to existing VET schemes (Refer Net Spain, 2014). The implementation of the programmes varies greatly in different Autonomous Communities, based on different cultures, different economies and different organisational and governance forms.

Clara Bassols and Guillem Salvans (2016) say that the Spanish FP Dual system is underdeveloped and needs to be refined and improved to ensure that it is genuinely capable of providing young people with the necessary professional skills and thus employability. Comparing developments in Spain with the German Dual apprenticeship training system, they say that while the two Dual VET systems will never be the same, comparison with Germany reveals that the Spanish system lacks some of the defining strengths of the German system. That the Spanish Dual VET system is so new is viewed as “an opportunity to make changes before it becomes too entrenched.”

Our hypothesis is that the development of apprenticeship programmes in Spain needs to build on existing cultural and organisational norms. This requires an in-depth understanding of critical factors in the perception of apprenticeship by different actors and how these affect the development and implementation of apprenticeship programmes.

The ‘Understanding cultural barriers and opportunities for developing new apprenticeship programmes’ project, sponsored by INEP, has undertaken a four-month research study based in Valencia, to explore the cultural and organisational norms and the barriers and opportunities these afford to introducing apprenticeship. In this paper, we explain the methodology behind the research and the main findings.

2 Research Methodology

A key aim for the project was understanding the introduction of an education innovation – apprenticeship – within a local setting and with a wide range of different actors.

The project adopted an action research approach. Our aim was to develop an understanding of the underlying causes of issues relating to the introduction of educational practice in order, in the longer term, to arrive at consensus by different social partners on how practice can be improved. Our focus has been on qualitative research with different actors who may have an important voice in this area, the organisation of apprenticeship, the role of different organisations and the cultural factors affecting the provision and reform of vocational education and training in the Valencia Community and in Spain.

Elden (1983) has introduced the notion of ‘local theory’. To understand the challenges of each specific workplace, he said, as well as how to attack them, there is a need to understand this specific workplace. In a similar way, we would suggest the need to understand the specific ideas and activities and ‘theories’ of different actors involved at a local level in apprenticeship. Here theory might be understood as the specific pedagogic and learning approach of apprenticeship in bringing together vocational training within schools with alternance periods spent within companies. One objective for our research was how such theory is linked to practice in introducing and supporting such programmes.

In the first stage of the project, we identified the major actors involved in the development and introduction of the apprenticeship programmes in Valencia. These included:

  1. Vocational Training Schools (directors, teachers, tutors)
  2. Policy Makers (regional government and political parties and organisations)
  3. Students and trainees
  4. Parents and carers
  5. Companies especially Small and Medium Enterprises.

The project adopted the idea of purposive sampling for selecting respondents for interviews (Patton, 1990). Interviews were conducted face-to-face using semi structured questionnaires. Overall, thirty interviews were conducted, recorded and transcribed.

3. Findings

In line with our approach to the project, we present here detailed findings from te different actors involved in developing apprenticeship at a local city level.

The role of companies in the FP Dual

Given the central nature of companies to the FP Dual system, it is not surprising that the relationship between companies and vocational schools, as well as the local administration was a major issue raised by all the different social partners. Although most company representatives interviewed were positive about the FP Dual and vocational schools welcomed the partnership with companies, it is proving time consuming to develop a culture and processes to support a dual system and the number of apprenticeship programmes and the number enrolled in Valencia remains limited. There are particular difficulties involving SMEs, who are reluctant to contribute to the cost of apprenticeship and lack skilled trainers.

The role of the school centres

Despite the support of some large and important companies, the adoption of FP Dual is being driven by the School Centres. In such a situation, it is possible that the large integrated centres are in a better position to lead such development, although this is not to downplay the contribution and effort of the smaller centres. School leadership is a critical factor, as is the commitment and contribution of teachers in the vocational schools. Directors and teachers receive no remuneration to working with companies to develop new programmes.

Administration and Contracts

The bureaucracy associated with the establishment of new apprenticeship programmes, both for the schools and for the companies, is troubling.

Some Autonomous Communities have legislation on contracts and remuneration for apprentices with differing rulings. In Valencia, it depends on the individual programmes negotiated between the company and the vocational schools. Quite obviously, this is problematic in that some apprentices are being paid for their work at the company while others are not. Furthermore, some apprentices, who are not receiving remuneration from the company, may be incurring some considerable expenses for travel.

Curriculum Design

At present, the FP Dual programmes last two years in contrast to the normal three-year length of apprenticeships in the German Dual system. There is concern that a some subjects, the curriculum is too heavy for such a time and there is a need for rebalancing drawn between what is learnt through the school and through in-company training.

Sector organisations

One key factor in implementing the FP Dual, is the strength and support of sector organisations which varies between different sectors. The initial programmes are being implemented where there is good communication and support between sectors, vocational schools and industries.

Flexibility and collaboration

The flexibility for the Autonomous Communities to implement apprenticeship schemes allows programmes to be adapted and planned according to the needs of local economies and societies. This may be a problem in terms of transferability of different courses and in transparency of what apprenticeship programmes stand for. There is an important balance to be achieved between the design of programmes to cater for the needs of individual companies and more standardised curricula which meet the needs of students in their education.

Careers guidance and the role of parents

There is only limited public awareness of the FP Dual and the aims and the organisation of apprenticeship. This issue is particularly salient given the high prestige placed on academic courses in Spain and particularly university programmes within the wider Spanish society. The weakness of education and guidance networks and services within Valencia is a major issue if young people, and especially higher achieving young people are to be recruited on FP Dual programmes and if companies and SMEs are to understand the value of apprenticeship.

Initial training and Professional development

There is a lack of a dedicated and well organised and resourced programme of professional development for vocational teachers and for trainers in companies, which is seen as a pre-condition for the future success of apprenticeship in Valencia. Initial training for vocational school teachers is overly focused on the subject with too little attention to pedagogic approaches to teaching and learning.

Sharing resources and good practices

The vocational schools appear to have well developed unofficial networks. But more formal networks are needed which could generalise discourses over strategies and approaches to apprenticeship and provide a forum for knowledge development and exchange.

There is a general concern that vocational education lack prestige, but more importantly the vocational centres often lack sufficient resources to not only maintain present programmes but to develop apprenticeship. This is linked to their understanding of the need for recognised quality in teaching and learning if apprenticeship is to succeed. Many teachers said they lack resources and there is poor access to technology.

International collaboration

European projects and programmes, including the development of new curricula and qualifications, new pedagogic approaches, the use of new technologies and the exchange of students and teachers are extremely valuable for vocational schools to develop and exchange knowledge and experience about apprenticeship.

Regional and city wide collaboration

Vocational schools appear to be approaching companies individually. There could be gains through developing more formal and extended networks between schools and companies, either on a regional or a sector basis. To an extent this role is being undertaken at a national basis by the Alliance for Apprenticeship. The establishment of the Alliance at the level of the Autonomous Communities could be an important step in promoting the FP Dual.

FP Dual and the local economy

Many of those interviewed saw apprenticeship as a way of proving the skills which the local economy would need in the future, particularly in view of the potential flexibility in designing new programmes together with employers. However, they also recognised the challenges in developing such a responsive system.

Evaluation

The new apprenticeship programmes are experimental, and many of the issues arising are not unique to Spain. Indeed, many of these issues have been raised in research into the long established German Dual System. However, the lack of qualitative evaluation of the FP Dual programmes, especially scientifically undertaken and published case studies, is a barrier to understanding what is working, what is not and how to improve the quality of the programmes.

4. Conclusions

The findings from this research are focused on the context of educational change and introducing apprenticeship in one community, Valencia in Spain. This raises the question of how generalizable they are to other regions and other countries. We would suggest the findings show the limitation in attempting to transfer models of vocational education and training from one country to another. Inevitably, FP Dual reflects the governmental, cultural, pedagogic and curricula history and practices of Valencia, as well as the particular context of the ongoing economic crisis. That does not mean that developing an apprenticeship system in Valencia is either undesirable or impossible. But it does mean going beyond lauding the strengths of dual system approaches to education and training and whilst recognising that a Dual system in Spain will always be different to Germany, addressing some of the cultural and educational issues that such a system raises. These include the relations between companies and education institutions, the prestige of vocational qualifications, the training of teachers and trainers and issues of pedagogy and curriculum. Announcing a new systemic innovation alone is not enough: unless these key issues can be addressed apprenticeship will not succeed in Valencia or in Spain.

References

Bassols, C. and Salvans, G.  (2016). High Quality Vocational training in Spain: the Alliance for Dual Vocational training, Bertelsmann Foundation, Madrid

Cedefop (2015). Governance and financing of apprenticeship, Cedefop, Thessaloniki

Elden, M. (1983). Democratization and participative research in developing local theory. Journal of Occupational Behaviour, 4(1), 21–34.

Esenciales Fundación BBVA (2016). La formación ha avanzado durante la crisis, peroel abandono escolar, los desajustes en competencias y el paro limitan el aprovechamiento del esfuerzo educativo, Ivie N.º 03/2016

Patton, M. (1990) Qualitative evaluation and research methods. (pp. 169-186), Sage Publications, Beverly Hills, CA

Pilz, M. (2016). Training Patterns of German Companies in India, China, Japan and the USA:What Really Works?, International Journal for Research in Vocational Education and Training (IJRVET), Vol. 3, Issue 2, August 2016, pp. 66-87

Refer Net Spain (2014) Apprenticeship-type schemes and structured work-based learning programmes: Spain, CEDEFOP

Wolter, C. and Mühlemann, S. (2015) Apprenticeship training in Spain – a cost effective model for firms?, Bertelsmann Stiftung, Guetersloh

 

Supporting start up businesses

 

 

 

 

One of the best things about Twitter is the ability to follow links to all kinds of things you probably would never have been to without it. And so I find in my notes somewhere the link to an article in Quartz – an online magazine (?) about which I know nothing. The link is to a loosely researched article about entrepreneurism – making the point that there is not much thing as an entrepreneurial gene but rather propensity to take risk and to set up new businesses is more like to be related to access to money – in other words to class.

The article, attributed to REUTERS/Allison Joyce, quotes University of California, Berkeley economists Ross Levine and Rona Rubinstein who “analyzed the shared traits of entrepreneurs in a 2013 paper, and found that most were white, male, and highly educated. “If one does not have money in the form of a family with money, the chances of becoming an entrepreneur drop quite a bit,” Levine tells Quartz.”

Entrepreneurship is all the trend in Europe at the moment, especially in the recession and austerity hit southern countries, where setting up a business is seen as one of the few ways of getting a job. However the rhetoric seems to overplay the potential of technology (everyone can be the next Steve Jobs!), whilst ignoring sectors of the economy such as tourism which probably represent better opportunities within the existing labour market.

At the same time programmes such as the EU Youth Guarantee fund are being used to set up support agencies for young people wishing to set ups their own business and we are seeing the increasing emergence of co-working spaces for new enterprises. But anecdotal evidence – and some reports although I cannot find them at the moment – suggest that many of these businesses are struggling to survive beyond the first one or two years. In austerity Europe bank capital remains hard to come by and most young people do not have access to their own funds to consolidate and explained their business. Although initiatives like the EU SME programme are very welcome, access to such funding is not simple and anyway the amount of grants on offer are simply insufficient. As European politicians slowly wake up to the disaster austerity policies have wrought, then establishing better support for new businesses should be a priority, tied to easy access to small business start up capital.

Thinking about Entrepreneurship

For some time I have been interested in Entrepreneurship. For one thing I resented the way the Thatcher and Blair acolytes had stolen the word. Working class people have also been entrepreneurial, setting up small businesses or providing services. Yet to listen to the new reasoning, entrepreneurs were the Bill Gates and Steve Jobs of the world, millionaires and directors of multi million pound listed software companies. Just as Puritanism equated being wealthy with being one of the saved, so neo-liberalism equated being rich with being an entrepreneur. It was something the poor should aspire to and they should study in awe rich people as role models.
Since the onset of the recession, or the crisis as it is universally called in southern Europe, some of the gloss has faded at least from the bankers.
Yet with unemployment and especially youth unemployment remaining at very high levels and with employment increasingly precarious, there seems, at least in Spain where i am living, to be ever more emphasis on entrepreneurship as the hope for the future of employment. Over the last week we have attended two conferences and workshops on innovation and entrepreneurship. On the one hand the increasing support for people trying to set up their own businesses is to be welcomed, even if coordination between the many different agencies involved seems somewhat lacking.
Yet the line of argument seems somewhat under developed. The answer for the ailing labour market is innovation Innovation is connected to entrepreneurship. The great future for innovation is technology in disrupting markets. Universities need to develop closer links to industry. We need more training in technology. Web 2.0 and social media are critical to marketing innovations. Look to Apple, look to Uber, look to AirB. Don’t forget the example of The Great Steve Jobs as a role model. And so on.
As Jim Groom and Brian Lamb said in 2014 “Today, innovation is increasingly conflated with hype, disruption for disruption’s sake, and outsourcing laced with a dose of austerity-driven downsizing.” And I fear the increasing popularity and support for entrepreneurship is also becoming conflated with hype.
I am curious about the overwhelming emphasis on technology, software and hardware. Is there any city on Spain – or for that matter anywhere else – which is not trying to develop the next Silicon Valley? Yet looking at the figures, the construction and care industries remain two of the largest industries in Europe by numbers employed. Yet they are rarely, if ever, linked to entrepreneurship. Services are continuing to grow in employment, although this covers a wide range of occupations. The number of people who make real money out of releasing Apps to the various app markets is extremely limited.
I think we need more nuanced thinking around a  number of issues. Clearly labour markets are closely tied to employment. Whatever skills we teach young people they will not gain employment if there are no jobs. Self employment and starting up a business are increasingly attractive routes for young people (especially as there is little alternative). However businesses vary greatly in size and type. Motivations and ambition can be very different. Some people are just looking for a weekend or hobby business, others may be wanting to build on skills. Disruption is probably a minor source of employment or indeed driver of entrepreneurship.
Whilst there is progress in providing support or young people in setting up their own business, advice and help is seldom geared towards them. Being told to go away and produce a profit and loss projection in a spreadsheet is only a small part of the story. And probably the major lack at the moment is help to develop businesses towards sustainability. Growth is not the only measure of sustainability. Bank capital is still in scarce supply and whilst welcome crowd funding has its downsides. And the schooling system in Spain, based on remembering facts, hardly helps young people in striking out on their own.
Above all policy and practice need to link up. Having said that there is a big contradiction between policies of austerity and policies of supporting entrepreneurship. Entrepreneurship requires public support as well as private funding. Enough for today…more to come.

Only 15 per cent of UK companies offer apprenticeship training

The UK Commission for Employment and Skills has published an interesting survey of Employer Perspectives Survey, the second in a series of biennial, large scale surveys of employers designed to provide a UK-wide picture of employer perspectives of, and experiences in, the recruitment and skills landscape. The draw attention to the following key findings:

  • There are perhaps unexpected signs of business confidence amongst private sector employers: almost half of establishments expect their business to grow in the coming year, and there is also greater confidence amongst younger businesses than older ones.
  • Employers typically use a range of channels when they are looking to recruit. They tend to make most use of private recruitment services which they do not have to pay for. Indeed, the single most common channel employers used to find candidates to fill vacant posts was ‘word of mouth’.
  • Candidates’ qualifications play a role in most employers’ recruitment processes and decisions, and a significant role for more than two in five. Academic qualifications continue to be better regarded than vocational qualifications.
  • Whilst the majority of employers train and plan their training there is a significant core of employers that do not.
  • Employers are more likely to provide training internally than to access the external workforce development market, although overall around half of employers do use external channels to deliver workforce development for their staff.
  • Employers most commonly look to commercial providers (private sector training firms or third sector providers) when they are looking outside of their own organisation to deliver training.
  • Overall take up of vocational qualifications remains at a steady level. However, there has been qualitative improvement in satisfaction with vocational qualifications amongst those employers that offer them.
  • Only a minority of all UK establishments offer apprenticeships (15 per cent). However, almost a quarter of those who don’t currently offer Apprenticeships expect to in the coming 2-3 years.
  • Employers are open to the recruitment of, or providing opportunities to, young people. Just over a quarter of all establishments, or 62% of those who had recruited, had recruited a young person in the previous 12 months. A quarter of all establishments had offered a placement to schools, college or university students.

A number of these findings appear significant. Employers still often rely on word of mouth – i.e. informal networks – when recruiting. And if qualifications play significant role for more than two in five decisions about who to recruit this means for three out of five they do not! The report also notes that

Academic qualifications continue to be better regarded than vocational qualifications and that when employers are looking to recruit new employees to key occupational roles, they usually anticipate that they will need to develop these new recruits’ skills, at least to some extent. UKCES report that employers are more likely to provide training internally (63 per cent did so) than to access the external workforce development market. Furthermore there is a wide sectoral variation in the provision of external training, ranging from 86 per cent in the Non-Market Services to 49 per cent in Trade, Accommodation and Transport sector.

Prospects for young people are problematic. “Amongst those active in the labour market in the last 12 months, the recruitment of young people was highest in the Trade, Accommodation and Transport sector at 71 per cent falling to between 55 and 59 per cent in all other sectors. This reflects the roles they are recruited to: 21 per cent of all employers recruiting young people reported that their most recent recruit was to a Sales and Customer Service role and 20 per cent to an Elementary occupation.”

Just 15 per cent of enterprises were offering apprenticeships. And of those that were: “Approaching a third of those who offer formal Apprenticeships (31 per cent) offer Apprenticeships that take 12 months or less to complete, and five per cent offer Apprenticeships with a duration of six months or less.”

All in all the report reveals some pretty big challenges ahead if the UK is going to develop an advanced education and training system, especially where employers are concerned.