Home > News > February 2003 > 27-Feb-2003

Small firms to benefit from £30 million injection to invest in training and development

The Department for Education and Skills (DfES) today announced that £30 million is now available to support small businesses to develop the skills of their workforce using the Investors in People Standard.

The Small Firms Initiative, a partnership between the Learning and Skills Council, Investors in People UK and Business Links, will make business support up to a value of £1,250 available to small companies on a first-come, first-served basis.

Over 14,500 small employers have achieved the Investors in People Standard. The Initiative aims to boost small companies' productivity and overall business performance by encouraging a further 20,000 small firms with 5 to 49 employees to work towards the Standard by March 2005. This will effectively triple the number of small companies using the Standard over the next two years.

Education and Skills Secretary Charles Clarke said: "Investors in People continues to have a key role to play in stimulating employers to develop their workforce, and contributing to the Government's objectives for skills, training and lifelong learning. Unfortunately there are still too many employers who fail to encourage the development of their employees and hence fail to take advantage of the potential for improvements in productivity and competitiveness. We hope this injection of funding will encourage people to work towards the Investors in People Standard."

The Standard provides employers with a flexible framework and helps small organisations to recruit and retain high-calibre staff, increase their credibility amongst customers and improve their competitive edge. It has enabled small firms throughout the UK to create a determined, skilled and motivated workforce, improve business performance and raise customer satisfaction.

Benefits of Investors in People according to employers:

• 91% say it improves planning;
• 91% agree it helps people achieve their potential;
• 89% agree investment in people is a good business decision;
• 85% associate clear, measurable results with Investors in People;
• 74% believe it delivers bottom line results;
• 68% regards people-oriented issues as key to achieving business objectives

(Source: UK Tracking Study - Employer Research, MarketShape Ltd, Feb 2002)

Investors in People UK, Chief Executive, Ruth Spellman, said: "In May 2002 the Chancellor demonstrated his commitment to improving UK productivity by setting aside £30 million specifically to encourage more small organisations to become Investors in People. Over the past 11 years the Investors in People Standard has helped thousands of UK organisations improve their business through developing their people and we're very excited about this new support initiative, which will make a significant contribution to improving the productivity of even more small organisations in England."

Bryan Sanderson, Chairman of the Learning and Skills Council, added: "The LSC is proud to lead this partnership. We will be working closely with Investors in People UK and the Small Business Service to reach our shared goals - enabling people from all walks of life to achieve their full potential, and providing business with the skilled employees it needs."

He continued: "If Britain is to compete in the global economy it needs a workforce second to none. Through raising standards and investing in our employees, the UK can significantly drive up its productivity, profitability and set our workforce apart from our international competitors. This is the key to the future success of this country. My plea to small business is to get involved."

For further details on the initiative and how to access the funding:

Visit www.makethebottomline.co.uk or contact Business Link on 0845 600 9006

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