61% of SMEs ready to Adopt Business Apprenticeships, but 4 things stop them
New research reveals 61% of SMEs ready to adopt business apprenticeships – but four key barriers stand in the way
The majority of small and medium-sized businesses are not resistant to business and professional apprenticeships but are being held back by fixable barriers, according to new research from specialist training provider Damar Training and Greater Manchester Chamber of Commerce.
The study of 219 SME leaders across diverse sectors found that 61% are either already engaged with apprenticeships or open to adopting them – challenging the assumption that SMEs see apprenticeships as “not for them”. Instead, the research reveals an untapped market of businesses seeking skilled workforce solutions.
Four barriers blocking SME adoption
The research identified four primary obstacles preventing deeper engagement:
- Unclear pricing structures – SMEs need clarity about true costs, hidden fees, and how levy transfers work
- Poor communication from providers – SMEs require quick response times and transparency during the inquiry process
- Unrealistic time commitments – Expectations for employer involvement must fit SME operational realities
- Insufficient ongoing support – Structured guidance once apprenticeships begin.
“These aren’t insurmountable challenges,” the report notes. “They’re service delivery issues that can be addressed when providers understand what SMEs actually need.”
What SMEs prioritise
When selecting training providers, SME decision-makers consistently prioritise:
- Financial transparency – Clear, upfront pricing with no surprises
- Flexible delivery – Training schedules that adapt to business demands, not rigid academic calendars
- One-to-one coaching – Personalised support over group sessions
- Structured employer support – Ongoing guidance for managers supervising apprentices.
The business case for action
For SMEs facing persistent workforce challenges, apprenticeships offer a strategic solution: faster access to skilled talent, reduced recruitment costs, improved retention, and built-in succession planning. With 16 million people employed by UK SMEs, even modest increases in apprenticeship adoption could significantly impact the skilled workforce shortage.
“This research confirms what we’ve long suspected – SMEs aren’t avoiding apprenticeships because they don’t see the value,” said Jonathan Bourne, CEO of Damar Training. “They’re not fully engaging because the current system doesn’t always work for how they operate. The opportunity for both businesses and training providers is enormous if we’re willing to listen and adapt.
“Given the emphasis that SMEs put on costing and funding within the survey, it’s likely many smaller businesses don’t realise that apprenticeship training costs are fully funded by the government for apprentices under 25 and 95% funded for those 25 and over (from August 2026). In addition, there is a £1,000 grant for hiring apprentices aged 16 – 18 (available now) and an extra £2,000 for every hired apprentice aged 16 – 24 (from October).
What SMEs should do next
Business leaders considering apprenticeships should:
- Ask providers specific questions about pricing, flexibility, and ongoing support
- Request case studies from similar-sized businesses in their sector
- Clarify time commitments and employer responsibilities upfront
- Download the complete research report which includes sector-specific insights and detailed recommendations: Research Report.
Opportunities for training providers
The research presents a significant commercial and strategic opportunity for training providers. With 61% of SMEs either engaged with or open to apprenticeships, the market potential is substantial – yet many providers could be doing more with smaller businesses.
To respond better to SME needs, providers should:
- Simplify pricing transparency
- Provide excellent responsiveness and communication
- Design flexible delivery models
- Offer structured ongoing support
- Build sector expertise.
Apprenticeship providers can download the report to access the complete recommendations.
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