"Modern Apprenticeships: The Small Business Perspective" the report is the first definitive Scotland-wide investigation into why small employers are, or feel, unable to take on apprentices.   It points to a confused business community, ill-informed about Modern Apprenticeships.  Data from firms which have taken on apprentices in the last three years suggest a bureaucratic system without adequate funding for the associated cost and counter-intuitive funding restrictions for older apprenticeship candidates.
 
The report produced during the last four months based on a survey of over 500 Scottish businesses, a review of existing research on Modern Apprenticeships, in-depth interviews with 8 sample businesses and consultation with key organisations.
 
Key findings:

• Over half of employers with apprentices (51%) felt a key advantage of taking on an apprentice was the ability to meet skills shortages in their business

• Employers indicated  Modern Apprenticeships can bring improvements to the overall business performance.  More than a third of participating employers felt improvements related to quality: a third felt apprentices improved productivity levels.  Some felt apprenticeships enabled efficiency, apprentices doing the less skill-intensive jobs quickly, freeing up time for senior staff to carry out more difficult jobs.

But:

• Small business participation in Modern Apprenticeships programme is low, only 17% of respondents have trained an apprentice in the last 3 years.
•  Barrier to small firms taking on apprentices is lack of information. 
  70% of firms not taking an apprentice in the last 3 years cited a lack of understanding about the involvement process, lack of clarity about  various public sector bodies roles and public sector contribution levels.

•  Cost of funding a Modern Apprenticeship is concern for more than half of firms who have and have not taken on an apprentice. Routed through National Training Providers, employers are not fully aware of the public sector financial contribution.

•  Age restrictions on funding were a concern for 53% of firms who had taken on an apprentice.  Public sector funding is mostly only available for the recruitment of apprentices below the age of 20.  Contribution level to adult Modern Apprenticeships is invariably lower than that made to a young person.

• Flexibility in course structure and content is particularly important.
  Calls were for a modular approach, allowing employers to select most  appropriate units for their business.

 
FSB Scottish policy convenor, Andy Willox, said:  "Apprenticeships are good for the apprentice, good for the business and good for the economy.... It is high time that the government properly established the proportion of Modern Apprentices being recruited by the smallest businesses and set out how this proportion is going to be increased in the coming years.
 
"While small businesses will be create the jobs to replace those which big business and the public sector shed, they also stand ready to train more apprentices and help re-skill Scotland."

Jacqui Hepburn, (right) director of the Alliance of Sector Skills Councils, Scotland said: "There are currently over 30,000 individuals undertaking Modern Apprenticeships in Scotland, and they are one of the jewels in the Scottish skills system.

"It is important for Scotland to continue to build ... by opening up new opportunities for development of Modern Apprenticeships, not only in traditional sectors, but across the full range of occupations that contribute to Scotland's economy."