Of the smaller firms surveyed in the West Midlands, 80% said they are seeking assistance to develop training and skills initiatives.

Despite their efforts to improve the skills of their employees, 78% of the businesses which completed the survey do not have the spare capital to fund an annual training budget. As a result, 68% have no annual training plan in place.

"Most employers are committed to training their staff – the skills they gain will be invaluable in helping their businesses to grow," said the FPB's Chief Executive, Phil Orford. "However, it is clear that smaller businesses in the West Midlands need more support and information to allow them to make the most of the help that is available."

Although only 6% of the FPB's members surveyed had used Business Link in the past 12 months, 67% of those who did so rated the service as ‘very good'.

Barry Knights, Regional Skills Brokerage Manager for Business Link, explained how employers can access free training for staff through Train to Gain – an initiative run in partnership with the Learning and Skills Council.

"We offer a free Skills Review, which involves one of our brokers going into the workplace, assessing staff skills, then, depending on what the company needs, working out a tailor-made development programme best suited to that business," he explained.

"Employers worried about losing valuable staff hours during off-premises training can take advantage of a wage compensation scheme available to companies with fewer than 50 employees.

"The role of skills is essential if a business is to be productive, efficient and profitable. Getting in touch couldn't be simpler. Just call the skills hotline on 0800 015545," he added.

Smaller firms can often offer a more flexible approach to training. Of the forms of training that firms currently provide, on-the-job training, coaching and mentoring, vocational training and apprenticeships are the most popular, according to the survey.

The FPB has concerns about proposals outlined in the Government's Education and Skills Bill, which is currently being debated in Parliament. If it becomes law, the Bill will force firms to give all employees up to the age of 18 time off work in order to attend college. Local authorities will be given the power to fine businesses for non-compliance.

At the FPB's Small Firms' Summit in October 2007, many members reported that young employees displayed a lack of business acumen and communication skills. In the third quarter of 2007, as part of Referendum – the FPB's quarterly ballot of members – 62% of respondents agreed that the Government should place ‘employability' at the heart of the UK's education system.