Working in a small business
3 important questions on Working in a small business
CQ 1: Do small businesses generate or destruct more jobs? (2)
- Small businesses are net job generators (in absolute and relative terms)
- Average share gross job generation and destruction both relatively high
What is the 3-fold barrier-based explanation that small businesses are less likely to formally train their workers, even though training your workers leads to both firm and individual worker benefits - productivity?
- Entrepreneurs are unaware of the benefits of training
- Entrepreneurs have 'negative' attitudes towards training
- The 'right' training is not offered
(Approach assumes that small businesses training practices should resemble that of larger businesses, however small business owners may have good reasons to offer less formal training: Market-based explanation)
What is the 4-fold market-based explanation that small businesses are less likely to formally train their workers, even though training your workers leads to both firm and individual worker benefits - productivity?
Market-based explanation assumes that entrepreneurs are 'informed' rather than 'ignorant' consumers of training
Current evidence tends to support market-based rather than barrier-based explanation (informal training: learning on the job, seems particularly important in small businesses)
- Focus on survival: small business owners favour short term horizon
- Limited 'slack' resources to support training
- Training increases likelihood of poaching / Gaining qualification increases switching jobs
- The 'right' training (e.g. Costs and appropriateness) is not offered
Current evidence tends to support market-based rather than barrier-based explanation (informal training: learning on the job, seems particularly important in small businesses)
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