The Determinants of Training in Small Businesses: An Interindustry Comparison

To examine whether, and to what extent, there are similarities or differences in the reasons why small businesses in three size categories from different industry sectors increase training. The results indicate some marked similarities in the reasons why small businesses increase training, with the introduction of changed production technology increasing training across industrial sectors and size categories. Further similarities exist across industry sectors, with business improvement programs influencing increased training in firms in the manufacturing, retail and wholesale trade sectors, although size-related differences are also evident. Further differences exist, with innovation increasing training in micro, small and medium-sized manufacturers only. Taken together, the findings indicate, overwhelmingly, organisational change initiatives, designed to improve business performance, are major determinants of increased training provision in small enterprises. The fact that some differences exist between size categories and industry sectors with respect to the type of change initiative influencing training provision may support a theme emanating from the recent literature that, the reasons enterprises provide training, or in this case, increase training, depend closely on the particular business needs relevant to the enterprise.