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Corporate Governance – portrayed in the individual cultural and legal framework, from the standpoint of equity capital.

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The German Mittelstand

 

 

SMEs are sluggish in catching on to the abundance of apprentices

Conditions for hiring apprentices have never been better” was how the Minister of Education summed up the numbers and the basic areas of development presented by the Ministry for Education and Research (BMFB) at the conclusion of the 2013/14 school year last Spring. If anything, its momentum is still gaining; the numbers presented by the Federal Employment Agency underscore the Minister’s comments. Last August the gap between the supply and the demand of apprentices was a mere 31,000, 15,000 fewer than the years before.

These rosy statistics made little difference to the small and very small enterprises that are still part and parcel of German SMEs. According to the Institut für Mittelstandsforschung in Bonn one out of two openings for apprentices in this sector is still vacant. The underlying reasons are explained in a survey conducted by the Agency at the beginning of September from which it emerges that small enterprises willing to train apprentices are in a quandary. Qualified applicants tend to prefer larger companies which they see as more appealing whereas those less qualified often do not have the basic skills necessary for beginning a company’s course of professional training. In addition, it would appear that many fresh graduates prefer continuing their studies in academia.

The Federal government, the Länder, the world of economics and finance, the trades unions and the Federal Employment Agency have pooled their resources and launched “The Alliance for Professional Training 2015-2018” which, since December 2014 has offered tailor-made programmes for small and medium SMEs to attract new recruits. The BMFB “Jobstarter” programme provides assistance and guidance to companies in recruiting and training a specialised workforce. “Jobstarter plus”, on the other hand reaches out to young people who have dropped out of university, orienting them towards professional training in industry. The Ministry of Economy and Energy (BMW) works hand in glove with the campaign that helps young people towards companies who offer apprenticeship training courses.

The commitment is praiseworthy, but many small companies will gain nothing from it – partly through their own lack of keeping abreast of opportunities . The Institut für Mittelstandsforschung has discovered in the past many small and very small companies knew nothing about all these initiatives being promoted at national level. The Institute is thus calling for more effective promotion, perhaps by making use of resources made available by Chambers of Commerce and Industry.

IFM’s points are well taken; finding candidates to select and recruit is not easy. On the other hand, companies and entrepreneurs must take the lead in all aspects of filling apprenticeship vacancies, from advertising to selecting and recruiting. Today, those who fail to reap the benefits offered by the projects in which Germany is investing billions of Euros by inaction have only themselves to blame for their lack of success.