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Study on mapping opportunities and challenges for micro and small enterprises in offering their employees up- or re-skilling opportunities . Vol. 1, Final report
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Study on mapping opportunities and challenges for micro and small enterprises in offering their employees up- or re-skilling opportunities . Vol. 1, Final report

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Micro and small companies are crucial for the European economy. Companies with less than 50 employees are responsible for 52% of jobs and 39% of the economic activity in the European Union (EU). Digitalisation, globalisation, population ageing and the transition to a climate-neutral economy are changing a large share of these jobs and activities. The up- and re-skilling of the employees in micro and small companies is therefore urgent, especially in times of rapid change and economic uncertainty. Yet employees in these smaller companies are currently participating less in adult learning compared with those employed in larger firms, which makes both the employees and the companies more vulnerable. Action is required by all relevant actors (i.e. companies, intermediaries, social partners and regional/national/EU policymakers) to increase participation of employees in micro and small companies in adult learning, with particular attention to the low qualified, as they tend to participate even less in up- and re-skilling activities. This study aims to develop a sound knowledge of the opportunities and challenges encountered by micro and small companies in supporting up- and re-skilling of their employees, including those that are low qualified. Additionally, the study aims to collect and analyse good practices at company level and good examples of policies for up- and re-skilling in micro and small companies. Although the study was undertaken before the Covid-19 outbreak, its conclusions and recommendations are relevant in the context of the post-Covid economic crisis. First, the pandemic and related confinement measures have affected sectors to different degrees and economic restructuring is expected as a result. Re-skilling needs to accompany workers and companies in the transition from shrinking to new or expanding sectors. Post-Covid reorganisation of production and service provision, as well as new working arrangements to comply with confinement measures, also require up-skilling of the workers. For example, digital skills are necessary to keep many jobs and businesses running, even more than before. Similarly, behavioural skills are increasingly required to work remotely and deal with continuous changes in job tasks. Also, the economic impact of the pandemic is felt more strongly by micro and small enterprises, which often operate in those sectors that have been strongly hit by the crisis (e.g. retail trade, accommodation and food services). These companies are expected to suffer more than before, and more than larger companies, from liquidity constraints and limited access to credit markets. As a result, they are likely to reduce their investments, including in up- and re-skilling. This can widen the gap in access to adult learning across firm size. Given their limited resources and technology, micro and small companies have, moreover, less access than larger ones to digital learning opportunities that can be deployed during the confinement. In this context, support for micro and small companies in regard to up- and re-skilling is needed, more than ever.
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