Small firms which offer on-the-job training are aiding in creating a skilled workforce but are not rewarded for doing so.
The Federation of Small Businesses (FSB) advised official qualifications should be given to these firms and their employees as the training is currently unrecognised.
A survey from the organisation found learning by doing is the most popular and effective way of training for these firms and 70 per cent of companies have employees which taught themselves on the job, but get no qualifications to do so.
John Walker, national policy chairman of the FSB, says it is important the government supports small firms to invest in the skills they need.
“The role small businesses play in this area of training the UK’s workforce should be properly acknowledged and the achievements of small firm employees actually recognised under official accreditation,” he adds.
A total of Ã‚Â£350 million has been pledged by the government to promote the Train to gain programme to small firms.