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Formal qualifications are not as important to small business owners as basic life skills, according to the Federation of Small Businesses (FSB).
Many company directors of small business dont have formal qualifications themselves, so are usually unfazed by recruiting school leavers or university leavers without real qualifications.
Most employers in small businesses prefer to hire someone whose personality and work ethnic fits into the fabric of the business as a whole.
British businesses - including many SMEs - spent £33 billion on staff training last year, but only 40 per cent of UK workers have a formal qualification such as an NVQ.
According to the Confederation of British Industry (CIB), many UK workers receive excellent training on the job, but these valuable skills are never recognised in any formal way.
Simon Briault, a spokesperson for the FSB, said: "There is obviously the apprenticeship scheme and the informal training that [small businesses owners] give to their employees on the job.
"One of the things that a lot of our members tell us is that the formal training that they do, and the way that they train up their staff, is not recognised or accredited by the government."
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