For many SMEs, hiring apprentices is a sound idea in principle but a difficult decision in practice. The latest Damar Training research, completed in collaboration with Greater Manchester Chamber of Commerce, shows that while most SMEs are open to apprenticeships, they need a clearer, simpler and better-supported route to get started.
It is often assumed that the problem is a lack of interest. It is instead the fact that apprenticeships for small businesses can feel too uncertain, too time-consuming or too difficult to manage alongside day-to-day work.
And that’s where Damar Training and training providers committed to providing flexible, suitable and ultimately beneficial apprenticeships for small businesses come in.
Here we explore the main barriers stopped SMEs from hiring apprentices and what companies can do to mitigate the obstacles to experience the full benefit of apprenticeship training.
Why do SMEs hesitate?
Our report surveyed 219 SME representatives and found that 61% show positive engagement with or openness to apprenticeships. That includes current users, former users willing to re-engage and businesses considering apprenticeships for the first time.
We then uncovered the ‘why’ of when SMEs hesitate and found the five biggest issues to be cost, time, admin, communication and support, and flexibility in how training is delivered.
If you are thinking about hiring apprentices and have faced any – or all – of the above obstacles, the question isn’t whether apprenticeships can work for your organisation; it’s how to find the right training provider who will understand and work through those barriers with you.
1. Cost clarity matters for small businesses hiring apprentices
The report shows that costs and funding are the biggest priority for SMEs in early conversations, with 82% ranking them in their top three information needs. Transparent pricing was also the top provider-selection factor, which shows just how important financial clarity is when businesses are weighing up apprenticeships for small businesses.
Unclear or unpredictable pricing was also identified as a barrier by 39% of respondents. That means SMEs are not necessarily put off by the idea of supporting an apprentice; they are put off by not knowing the full financial commitment upfront or not being able to navigate government funding opportunities themselves.
A good provider should always explain total costs, funding available, the employer contribution and any extra expenses. For SMEs, that kind of clarity is often the difference between moving forward and walking away.
What to do next: ask your provider for a full cost breakdown before you commit, and make sure you understand the funding, the employer contribution and the total expected spend.
At Damar not only do we provide clear and upfront costs per programme, but we can also help you navigate the funding available based on your organisation’s size, apprenticeship programme and apprentice’s age at time of starting their apprenticeship.
2. Time is the real pressure for small businesses considering apprenticeships
Time commitment was the second-highest priority for SMEs in initial conversations, with 76% ranking it in their top three priorities – plus 35% of respondents saw unrealistic time commitments as a factor that would potentially prevent them from moving forward with a provider. For SMEs, it’s clear that time is often more constrained than money.
That is why hiring apprentices can feel hard for smaller businesses. If the time required by the supervisor and wider organisation is not clear, the programme can feel like another demand on an already stretched team.
SMEs therefore need reassurance that the apprenticeship will fit around the business, not disrupt it.
What to do next: ask your training provider how much time is expected from managers, supervisors and the apprentice, including protected off-the-job hours, then consider that against your current workload.
At Damar we always lay out the expectations of an apprentice supervisor and team in early conversations and offer regular training opportunities and on-going review meetings for apprentice supervisors. These are outlined and set from the beginning of the programme to ensure no unnecessary calendar surprises or rushed meetings.
3. Admin creates friction in the apprenticeship hiring process
The report also found that 34% of SMEs said too much admin work was another barrier to apprenticeships. That matters because most small businesses often do not have spare HR capacity to absorb extra forms, information chasing and updates.
This is one of the biggest reasons apprenticeships for small businesses can feel harder than they should. If the process is full of paperwork, unclear steps or repeated follow-ups, it becomes one more job on the list rather than a practical solution for growth.
Instead, SMEs want the opposite: simple, digital progress tracking that reduces admin while still keeping them informed. In fact, 54% preferred an online portal with real-time updates for tracking apprentice progress.
What to do next: choose a provider that reduces admin, gives you live visibility and makes it easy to stay on top of progress without adding more work for your team.
That is why Damar Training’s online approach matters. We offer everything online with live progress tracking, which means SMEs can stay up to date without having to chase paperwork or rely on endless back-and-forth.
“The difference between the old college-based system and what Damar provided was night and day. Everything was clearer, more structured and much better suited to the realities of running a business while developing someone’s skills.” – Worldchoice Travel
4. Communication builds confidence between all parties
Poor communication and slow response times were cited by 36% of respondents as an obstacle to being able to support a successful apprenticeship programme. Alongside that, 37% said quick responses to questions and issues were an essential support requirement, which shows how much SMEs value being able to get answers fast.
For small businesses, this is about trust as much as service. If a provider is slow to reply or hard to reach, the apprenticeship starts to feel risky, especially if you are new to hiring apprentices.
The report also shows that 31% of SMEs want a dedicated account manager and 42% want clear guidance on employer responsibilities. SMEs want a provider who stays involved, explains things clearly and helps solve problems before they grow.
What to do next: ask who your main contact will be, how quickly they respond and how progress will be communicated. If you are not going to be the apprentice supervisor, consider if you still want to be actively involved in ongoing reviews and communications.
At Damar, each of our employer partners has a dedicated account manager who is always available to answer questions, provide regular reviews, and – when appropriate – support on progression pathways. They are in turn supported by the apprentice’s coach and, where appropriate, Damar’s dedicated special education needs and careers education, information, advice and guidance co-ordinators.
“If you don’t hear from us, you’ll chase: ‘We sent you those over last week. How is it? Where are we with the process?’ This proactive follow-up ensures that recruitment processes keep moving forward and that no opportunities slip through the cracks.” – Lanyon Bowdler
5. Flexibility is essential in apprenticeships for small businesses
The report shows that 69% of SMEs require moderate to high flexibility in training delivery. Weekly shorter sessions were the preferred schedule for 87% of respondents, and one-to-one coaching was the clear delivery preference, ranked in the top three by 88%.
The report also found that 28% of respondents wanted more flexibility in training schedules, while 23% wanted more practical, hands-on content and 22% wanted content specific to their business or industry.
The reality: SMEs do not all run on the same timetable and apprenticeship delivery needs to reflect this.
What to do next: ask whether the programme can flex around busy periods, whether sessions can be adjusted and whether the content will be relevant to your actual work. If not, the fit may not be right for your business.
All Damar Training coaching sessions and reviews are completed online for ease and best use of time as we understand how time pressured many employers are in the current climate. We also provide insight into apprenticeship modules to ensure you can best align learning with on-the-job practical application.
Although our apprenticeship programmes run in groups, we work with all employers to provide as much flexibility within this. For example, apprentices have control over when they book in coaching and review visits, so can choose times that suit them, their supervisor and business demands.
What SMEs need from a provider when hiring apprentices
The report does not just identify barriers; it also shows what good support looks like. SMEs want transparent pricing, a clear explanation of responsibilities, responsive communication, simple progress tracking and a provider that understands the pace of small business life.
That is why the best apprenticeship providers do more than place an apprentice. They make the process manageable, keep information visible and support both the employer and the apprentice throughout the journey.
Our model at Damar Training is built on transparency in pricing and processes, one-to-one coaching, genuine flexibility, dedicated account management and ongoing support, with everything delivered online and live progress tracking available for employers.
For SMEs, we turn apprenticeships from a complicated process into a practical option. When hiring apprentices feels clear and supported, it becomes much easier to see the long-term value.
“I’ve had a lot of apprenticeship companies contact me and I just say no sorry, I’m using Damar. It’s important that we work with organisations who share our values. I’ve used them my entire time here and they’re just brilliant.” – Family Law Company
A better way forward
The report’s conclusion is encouraging: the barriers stopping SMEs from engaging with apprenticeships are real but they are solvable. The opportunity is there for businesses that want to grow, strengthen their teams and bring in new talent.
If your business has been thinking about hiring apprentices but holding back because of cost, time, admin or support concerns, the next step is simple: speak to us.
With over 45 years’ experience in the training sector, we help SMEs by providing expertly designed training to new and existing staff, as well as helping individuals to start and progress in their careers, supporting people to achieve their potential, now and into the future.