The impact of training in the context of Small and Medium Enterprises: A Systematic Review

Abstract

This research aims to explore the impact of training practices in the small and medium enterprise (SME) context. It also aims to analyse improvements in SME staff members’ motivation, innovation, productivity, and performance that result from training. A systematic review of 13 studies from peer reviewed journals was conducted to answer the research questions. The results show that there are no differences between the size of the impact and the size of the company, but there are differences in the intensity of training in large companies compared to small companies. The review also reveals the willingness of employers, in the context of SMEs, to invest in training practices to respond to rapid changes in the business world and promote their sustainable development strategy. Furthermore, the study shows the importance of training in motivating employees to acquire new skills and qualifications, as well as apply them in their specific roles. More importantly, review’s findings show that SMEs investing in both training and innovation are likely to have effective training policies. More importantly, the positive impact can be higher if these initiatives interact with the companies’ knowledge assets. However, governments can play a vital role in managing SMEs training by adopting training initiatives for SMEs and encouraging SMEs to invest in human capital training through tax exemptions and investment incentives. SME employers and policymakers, nevertheless, can propose effective training policies to deliver successful training practices, and it is the responsibility of SMEs’ employees to demonstrate loyalty to their organisation, make a greater effort to develop their competencies and abilities through training provided by their companies or training opportunities available outside of work.