61% of SMEs are 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 potentially being held back by fixable barriers, according to new research we’ve undertaken in partnership with Greater Manchester Chamber of Commerce.
The study of 219 SME leaders across diverse sectors, from sole traders to companies with up to 250 employees in size, 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.
Access the full research report.
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, 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
- Read the complete research report, including sector-specific insights and detailed recommendations.
Damar Training: Supporting SMEs
Our approach at Damar is built on the principles revealed in this research: transparency in pricing and processes, one-to-one coaching as our primary delivery method, genuine flexibility in scheduling and delivery, dedicated account management for every organisation and ongoing support for both apprentices and their employers. We believe that SMEs should have the same access to high-quality apprenticeship training as larger organisations, delivered in ways that work for their specific contexts and constraints. If you’re ready to unlock the potential of apprenticeships for your business, we’re here to make it happen – just get in touch.