Training and Competence Development in the Sme Sector: The Hungarian Case

Journal for East European Management StudiesBand 10 Nr. 2, April 2005

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Zusammenfassung


The lack of systematic knowledge on the SMEs training practices could be explained by the lack of financial resources and the low-motivation of managers to invest in skill development. This is the so-called "competence paradox", according to which firms investing in their employees' competence development simultaneously increase the risk that these employees will leave the company. Contrary to the traditional quantitative, survey based approach on SMEs training practices, this analysis intends to better understand such kind of non formalised practice of learning in the company practice, using the empirical experiences of case studies in three selected sector. One of the most important methodological messages of this research project is that the "right mix" of both quantitative and qualitative research techniques is able to describe the variety of competence development and training in the SMEs.

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Training and Competence Development in the Sme Sector: The Hungarian Case

1. Introduction: Theoretical and Methodological Background1

Evaluating training practice in general and especially in the SME sector, no social actor can be found who is questioning the importance to develop human resources - including skill and knowledge improvement during the life-long learning - meaning to increase competitiveness of the European economy (Lisbon Summit guidelines, 2000). This consensus among the social actors is based on the new growth theories. The latter make the economic development or wealth accrual more dependent on the intensity of accumulation of human capital (defined by the combination of levels of knowledge, skills and competencies of workforce) than on the rate of accumulation of physical capital.

Beside this general consent among social actors on the increasing role of human capital in the economic and social development, a lot of both theoretical as well as methodological problems make it difficult to understand and assess the role of knowledge in the performance of the business organisation in general and in the SME sector in particular. We have to confront further difficulties, when we try to compare and evaluate the situation of SMEs in the EU-15 countries and the New Member Countries (NMC). (see the SME definition in the table 1 in Appendix.) The recent phase of enlargement of the EU, which includes countries from Central and Eastern Europe and from the Mediterranean, took place in May 2004. The enlargement certainly will open a new challenging area for the social and economic actors in the ,,old" and ,,new" member countries. In the EU-25, a variety of legal, social and cultural norms both in human resource utilisation as well as working conditions in a large sense across Europe creates unprecedented pressure for the policy makers to better understand the new realities. Among many challenges, one of the most important one is how to create a more competitive/flexible and at the same time socially stable/cohesive New Europe. To avoid illusions and elaborate comprehensive and workable policies in the field of knowledge and competence development, it is necessary to understand the heterogeneity of practices in EU-25 countries.

Unfortunately, there are rather few comparative studies aimed at comparing the various dimension of human resources utilisation in the economy, (and) especially in relation with the SME sector. Listing the various EU level research initiatives, comparative projects focused on the working and life conditions, including training and knowledge us...

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