NOT all businesses being encouraged to take advantage of a service that could help improve their competitive edge are easily convinced of its worth.

The National Council for Education and Learning for Wales (ELWa) runs a Small Firms Training Initiative aimed at helping smaller companies with their training plans.

But, according to Rob Marr, managing director of Newport company t2 Skills, one of the firms delivering the programme in South Wales, getting the message across to companies who can benefit is not as simple as it might seem.

"You might think that offering companies advice and support would be a sure-fire winner, but there are hundreds of companies out there that can still benefit from the programme," he said.

"Many seem to put training low down on their agenda. They see it as a cash flow and operational handicap rather than as a means of achieving goals.

"The feeling is that training takes up too much time and does not bring immediate tangible benefits.

"The reality, of course, is that training and development are essential for an organisation to maintain the quality of its output and drive the business forward.

"Without continually improving the skills base of its staff, companies are in danger of being left behind in the marketplace."

Usk-based Philmor Rail is one example. It manufactures railway maintenance equipment and in the past two years its turnover has increased from £800,000 to £3.8 million and its staff has grown from seven to 54 employees.

General manager John Wyllie said his business had mushroomed very quickly with the renewed focus on rail safety.

"Two years ago, our training was very much ad hoc but following our growth spurt, we have recognised that we need to formalise our training.

"We worked with t2 and drew up a training strategy, which really helped to focus our minds. Before, we had been so preoccupied with managing the business that we weren't tuned into the training needs of many of our staff."

Under the scheme, human resources specialists visit companies and help them to identify their training needs.

They then work with the organisation to draw up a training plan that will help bridge any gaps in the firm's skill pool.

David Morgan, regional director of the National Council - ELWa, said promoting learning among businesses was a major route to improved competitiveness.