Training and performance in SMEs:Empirical evidence from large-scale data from the UK

Abstract

This article examines the link between training and (perceived) actual/intended performance of small and medium-sized enterprises (SMEs) in the UK. We use the UK’s 2015 Small Business Survey containing large-scale data from more than 15,000 owner-managers of SMEs. Using the ordered probit analysis to test our hypothesis, we find that there is a positive and significant relationship between training and SMEs’ performance. When differentiating between training according to its type, we find that on-the-job and off-the-job training are positively and significantly related to performance; however, when these types of training are received simultaneously, the combined association becomes stronger than their individual effects.