Help for Scottish SMEs aiming to modernise

Upskilling staff and investing in training on 'green' issues provides a multitude of benefits for SMEs – and now, The Open University is encouraging Scottish businesses to achieve these aims by applying for financial assistance.

A series of roadshows has increased awareness of Scottish Government funding aimed at bridging the skills gap - but more businesses are being encouraged to sign up for the fund by the end of July deadline.

The fund’s importance has been highlighted by new research which found that two thirds of Scottish Small and Medium-sized Enterprises (SMEs) are hampered by skills shortages – and also that two thirds are unaware of the Scottish Government’s funded training support.

The survey, commissioned by The Open University (OU) in Scotland, found that most SMEs (89%) recognised the positive impact of staff upskilling on business success and also planned to invest in “green” staff training.

However knowing where to start can be “overwhelming” according to Tim Lewis, who ran the series of recent OU roadshows aimed at spreading awareness of the Flexible Workforce Development Fund (FWDF).

The Open University (OU) in Scotland works in close partnership with SMEs across the country to deliver flexible and tailored skills-based training to support the development of their employees and the individual needs of their business. This includes access to microcredentials and fully funded opportunities through the FWDF.

The roadshows were attended by over 120 delegates in the seven mainly rural locations and have opened up the opportunity for future conversations with over 1500 Scottish businesses who could benefit from FWDF support.

Lewis said that while there was some awareness of the training provided by colleges, there was less understanding of OU provision.

“We have a great offer for business and our flexibility means we can reach people who might not otherwise have the chance to go to university,” he said. “We have a lot of new courses that are ready to go and great modules in subjects like sustainability, renewable energy and technology. We also have a really good course about transforming your organisation for sustainability which is great if you don’t know where to start.”

Mr Lewis pointed out that sustainability is going to be an imperative for all businesses as Scotland moves towards net zero but said it was such a massive change that many people found it “overwhelming”.

“It is a huge topic but it can be broken down into ways to take action and education right across the workforce is the way to do that,” said Mr Lewis.

We have a great offer for business and our flexibility means we can reach people who might not otherwise have the chance to go to university."

Tim Lewis, OU in Scotland

People management (25%), finance (24%), digital technologies (22%) and project management (20%) were identified as the top areas where SMEs are facing skill shortages and the OU is able to offer courses to suit all these needs.

While 67% of Scotland’s surveyed businesses reported that skills shortages are impacting their business growth and profitability, for businesses with 10-49 employees, this rocketed to 83%.

Environmental concerns and their impact on business growth were also found to be central for Scottish SMEs, with 85% of organisations planning to invest in “green” staff training. Priority training areas included developing innovative and sustainable practices (37%), making their businesses more sustainable (36%) and renewable energy (32%).

The survey also highlighted a lack of awareness among SMEs of the access they have to Scottish Government-funded employee training support. Less than a third of businesses had heard of the Scottish Funding Council Upskilling Fund (31%) and the Part-Time Fee Grant (29%).

A total of 32% of businesses surveyed knew about the FWDF, which offers SMEs access to £5,000 of free and flexible online training with the OU in Scotland, supported by the Scottish Funding Council. More positively, 75% of respondents said they would be likely to consider accessing funds in the next 12 months.

One business that has benefited from working with the OU is global lifeboat manufacturer Survival Systems International.

Part of a global network of owned and operated service bases, delivering a specialist range of innovative lifeboat products and services to offshore operators, staff working at the company’s base at Montrose in Angus have benefited from access to the FWDF.

Survival Systems International first began partnering with the OU in Scotland in October 2021, after being attracted to the funded courses the distance-learning provider had to offer through the FWDF.

By choosing courses that we can integrate into our company requirements and by receiving funding, this has supported external learning and reduced the burden on our training budget."

Tina Simpson, Survival Systems

Human Resources Manager for Survival Systems International, Tina Simpson, explained: “Access to the relevant courses offered by the OU has allowed us to support the development of our workforce.

“By choosing courses that we can integrate into our company requirements and by receiving funding, this has supported external learning and reduced the burden on our training budget.”

She added that without access to this funding, the availability of this type of professional development to the workforce would have been limited due to cost.

Ms Simpson also highlighted that the flexibility provided by the OU in Scotland had been welcome when operational needs have had to take precedence at times. As an employer, she also recommends businesses allow time and resources for employees to complete the training within their defined training programme.

She said the benefits to the workforce of studying with the OU in Scotland have included the promotion of staff that completed their training, increased knowledge, continuous professional development and opportunities to progress within the company.