Purpose The purpose of this paper is to review critically the HRD literature in the small business context in order to identify the main barriers to employee training and learning and recommend ways to overcome them.
The paper highlights the potential barriers to training and learning among small firms, looking at organizational constraints such as lack of time or limited financial resources, as well as negative attitudes towards employee training and its importance for business survival.
The available studies indicate that better access to information on the applicability and usefulness of HRD to small firms can be crucial to overcoming the barriers to skills development that exists among such firms. The analysis suggests that a key challenge for policy makers in this area is to facilitate changes in owner attitudes, improve access to training interventions and create the necessary institutional conditions to encourage SMEs to move to high value‐added trajectories.
SMEs need to invest in innovation to face fierce national and international competition and achieve an above‐average return. This article provides guidance for implementation of innovation practices that may help SMEs to overcome some of the barriers to successful innovation.
The human resource development (HRD) literature has tended to focus on larger organizations in order to develop an understanding of workforce skills development. However, it has been acknowledged that a healthy small business sector is fundamental to every corporate economy. This article helps to explore the HRD processes in these types of organizations.
