Entrepreneurship (SIMA)

Effectiveness of training methods for SME managers

Oksana Tokarchuk, Roberto Gabriele

In order to succeed smaller firms have higher needs of good management compared to large firms (OECD, 2000). Management training is expected to provide firms with better management (Wightman and McAleer, 1995; OECD, 2002). In fact, positive correlation between training and firm performance (e.g. Feltrinelli, Gabriele and Trento, 2017). Research on the effects of training in small and medium enterprises (SME) concentrated on the overall employee training (Kotey, 2004). It is generally recognized that employee training leads to higher efficiency of firms, measured by firm survival, higher profits and sales (e.g. Marlow and Patton, 1993; Storey, 1994; Kotey and Folker, 2007). Moreover, it is demonstrated that while SME express preference for informal training, formal training methods are associated with higher firm performance in the domain of SME (Aragon-Sanchez, Barba-Aragon and Sanz-Valle, 2003; Kotey and Folker 2007; Jones, Beynon, Pickernell and Packham, 2013). Although SME owners/managers are aware of the possibilities of training smaller firms are less likely to invest in training (Marlow, 1998). …

#methods of training #middle manager training #SME #TFP