Management Training and Small Firm Performance: Why is the Link So Weak?

PROFESSOR DAVID STOREY AND DR. Paul Westhead are with the Small and Medium Enterprise Centre at Warwick University, England. To improve the internal efficiency and business performance of small and medium-sized enterprises, a number of training initiatives have been introduced in the United Kingdom over the last decade. This has been based on the provision that training can be a powerful agent of change, facilitating and enabling a company to grow, expand and develop its capabilities and so enhance profitability. This paper seeks to review research which has examined the relationship between small firm performance profits, growth or survival and participation in management training. Although the prime focus of the current paper is upon the United Kingdom context, an earlier paper examined research literature from elsewhere in Europe, Canada, the United States, and Australia. Its conclusion was that the relationship between participation in management training and small business performance is currently not well established. The current paper briefly reviews these issues but is primarily concerned to establish reasons for the weak relationship between management training and small business performance in well-conducted research.