the institute for employment studies

Access to national skills and business support programmes among rural businesses

Jim Hillage

Introduction

Defra/BIS study about access to business support● Reviewed the literature● Analysed relevant surveys :

Small Business Survey (SBS) Employer Perspectives Survey (EPS)

● Examined programme admin data● Interviewed stakeholders and employers

UKCES study about approaches to training and recruitment:● Employer Skills Survey (ESS) and EPS

National support provided by government

Source: IES, 2013: Government support for SMEs (BIS 2013)

Sector

Performance

Size RDPE

Targeted support

Generic support

What we found: headline results

No evidence that rural businesses are less likely to access national support programmes than businesses from urban areas

Take-up does vary by location but the driving factors are business size, sector and age

However access (for all businesses) could be improved

Rural businesses are different, but face similar challenges to urban businessesRural businesses are more likely to be:

●Smaller – lots of sole traders●Based in land-based, retail,

construction or professional sectors More rural employees work in SMEs

●Higher proportion of operatives employed in rural areas and a lower proportion of professional and admin staff

Take-up of business and skills support is generally low

Not all employers need helpNot all employers who do need help know

what is availableNeed for better (tailored) informationEmployers can be deterred from applying

for support by the concerns about the application processes and eligibility criteria.

Awareness and take-up of different support programmes varies Compared with urban businesses, rural businesses are:

● More likely to be aware of and sought help from Business Link● More likely to have contacted professional bodies, local authorities

and learning providers● Just as likely to have tried to access financial support and more

successful in obtaining it● Slightly more likely to provide external training● Less likely to be IIP accredited● Less likely to be aware of the Work Programme and other labour

market policies However patterns of awareness and access largely driven by

size, sector and age rather than location● New firms and larger firms more aware of sources of business support● Rural businesses more likely to be successful in applying for funding● Rural business more likely to seek advice on e-commerce and

technology

UKCES study found similar results

High incidence of hard-to fill vacancies in rural areas – but explained by size and type of business rather than being urban or rural.

Rural business tend to have a more informal approach to training●Less likely to plan or have a budget●More likely to use FE colleges than urban

businesses●Less likely to train for qualifications

Needs for rural businesses

Limited labour pool Accessibility

●Transport – travel to work or training●Access to broadband●Access to networks

Otherwise similar needs to other businesses:●Level of demand●Access to finance●Coping with regulations●Employment, premises and other costs

Factors affecting access to business support

Take-up ofSupport programmes

ProgrammeDesign

ProgrammeEligibility

ApplicationProcess

Marketing

Size Sector Age

Factors affecting access to business support

Take-up ofSupport programmes

ProgrammeDesign

ProgrammeEligibility

ApplicationProcess

Ensure quick return

Keep it simple Minimise

cost

Make it savvy

Monitor by

location

Segmentthe offer

Personal approaches

Marketing

Size Sector Age

What can be done to improve take-upamong rural AND urban businesses Proactively seek to provide likely businesses with support

● Tailor offers to segmented sectors Personal approaches more effective than anonymous on-line

methods● Or use trusted intermediaries

Ensure a quick return● Emphasise opportunity cost

Minimise cost of access● Make the rules simple to understand

Keep choice to a minimum, to make it easier to ‘go with the flow’ Tap into local networks

● Indentify local champions Present those who do access support as being ‘on the ball’ and ‘in

the know’ Regularly monitor take-up by locality

… thank you

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