IIP and SMEs: awareness, benefits and barriers

Abstract

This paper considers the impact of the Investors in People (IIP) Standard upon small‐ to medium‐sized enterprises (SMEs) in the Midlands. The paper describes IIP, then considers the significance of SMEs and the impact of training and development in that sector. The paper then presents an analytical framework, firmly rooted in a literature review, that provides the basis for an examination of the reasons why SMEs might commit (or fail to commit) to IIP, the difficulties encountered and the benefits received. Our empirical findings are discussed in the context of this framework. These findings are based on questionnaire responses from almost 600 SMEs, and interviews with promoters of IIP. Some key responses are broken down according to size‐band and/or growth‐orientation. In addition, follow‐up interviews were conducted with selected firms, ranging from IIP enthusiasts to rejecters. This study therefore combines quantitative data with qualitative input. The attitudes and experiences of the respondents offer fresh insight into the appropriateness of IIP as an organisational development tool for the SME sector. The SME support network in England and Wales is undergoing a critical transition. The role of the Training and Enterprise Councils in promoting IIP to SMEs also comes under scrutiny, and our study has lessons for the promotion of IIP by the new learning and skills councils.