According to new research from Vodafone Business, over half of SMEs have already shelved plans to take on apprentices in 2023.
These worrying figures come against the backdrop of exceedingly high levels of inflation, which have led to a cost of living crisis in the UK.
SME Apprenticeship Schemes to be Axed
The survey, which polled over 1,000 business leaders across the UK, highlights the need for further action in supporting small businesses in the UK.
Of the firms surveyed – that had previously offered apprenticeships (60%) – over half of these (51%) have already axed future plans to take on new apprentices.
Apprenticeships offer a fantastic opportunity for young people to gain skills in employment, however, as businesses grapple with the true cost of operating in today’s economic environment, such programmes have fallen victim to cost saving measures.
In addition to the above, the report also found that:
- 44% of SMEs were unaware of the various financial support packages available to them from third-party schemes
- 21% of SMEs said the level of financial support could help sway them into taking on an apprentice for their business
- 20% of SMEs suggested they didn’t know how to go about hiring an apprentice
- 21% of SMEs suggested that they simply couldn’t afford an apprentice
- The main barrier to bringing on apprentices:
– 48% cited higher business running costs
– 30% cited the increased energy bills for heating, lighting and running equipment
– 21% cited increased staff wages
Discussing the research results, Vodafone’s UK Business Director, Nick Gliddon said: “Our research shows just how much support is required from both big businesses and Government to ensure that SMEs can take on apprentices or offer up-skilling programmes to existing staff.
“With SMEs making up 99.9% of all businesses, they are crucial to our economy and have an important role to play in providing the UK workforce with viable training and skills.
“SMEs are often forgotten when discussions about apprenticeships take place, and barriers, like costs and time, make it harder for them.”
Small businesses access unsecured, fast funding from Got Capital. As an alternative lender, Got Capital offers financing solutions specifically designed for and catered to the needs of SMEs.
