Small and medium-sized enterprises (SMEs) form the foundation of the UK’s economic landscape. Yet, for many, productivity growth remains stubbornly low. The UK’s so-called “productivity puzzle” - the persistent gap between us and our international competitors - is well known. What’s less discussed is how much of this challenge sits within our SME base, which has struggled to boost growth and efficiency in recent years.That’s why the Chartered Management Institute is proud to support Edge Foundation’s Apprenticeships Work campaign. We believe that management apprenticeships hold one of the keys to unlocking the untapped potential of SMEs - improving leadership capability, driving innovation, and helping businesses to grow sustainably.
CMI has long championed an all-age, all-level approach to apprenticeships. We were directly involved in developing the employer-led Trailblazer Management and Leadership Standards to ensure they reflect real-world business needs. These apprenticeships have since provided a powerful route for employers to develop the skilled managers they need to deliver growth, performance, and productivity improvements. The link between strong management and organisation-level productivity is clear. Studies have shown that management practices such as setting clear targets, managing and incentivising performance, and consistently analysing operations can drive productivity. Management capability also underpins successful technology adoption whether that’s implementing digital tools or integrating artificial intelligence into business operations. Evidence shows that UK SMEs are less likely to adopt structured management practices and are among the least likely in the G7 to embrace new technology.
Management apprenticeships provide a powerful way to address skills gaps, equipping individuals with the confidence and tools to lead effectively while developing the core employability skills that drive business success. For example, CMI’s Level 3 Team Leader or Business Administrator apprenticeships give individuals practical, work-based learning that opens clear pathways for progression - from first-line management roles through to higher-level apprenticeships and Chartered Manager status. The benefits extend beyond the individual: apprentices help build a culture of learning and development across their organisations, with 97% reporting that their experience increased their commitment to developing the people they manage. CMI research also shows that management apprenticeships can have a direct impact on boosting business revenue and productivity across the wider economy.
But to fully harness their potential, SMEs need the right support and clarity. Many smaller firms find the apprenticeship system complex to navigate, or worry about time and cost pressures. That’s why campaigns like Apprenticeships Work are so important: they shine a light on success stories, bust myths, and encourage more employers to see apprenticeships as a strategic investment rather than an administrative challenge. Now is the time to double down on what works. The government’s recent commitment to the continuation and expansion of the Help to Grow: Management programme and the establishment of the Business Mentoring Council are welcome steps in the right direction. But to ensure these initiatives deliver lasting impact, collaboration with Chartered Bodies such as CMI is vital.
Apprenticeships work - for individuals, for businesses, and for the economy. For SMEs, management apprenticeships in particular could be the catalyst that turns potential into productivity.
We work with over 22,000 employers and more than 3,000 training and delivery partners across the UK. Together, we help ensure that skills development is rooted in quality standards and focused on real-world business outcomes. By continuing to work closely with professional bodies, the government can help plug the UK’s persistent management skills gap and enable more SMEs to realise their growth ambitions.
Written by
Jules Bennington, Senior Policy Officer, Chartered Management Institute