Business Commons^™

Impact And Results Of Cuts In Training And Development Budgets On Local Small Businesses In Southern Mn, Emily Haag

Journal of Undergraduate Research at Minnesota State University, Mankato

This study investigates whether training costs had an impact on small business profitability between 2006 and 2010. The results show that companies that increased or maintained their spending on training between 2006 and 2010 had higher profitability overall as compared to companies that cut or did not invest in training. In fact, companies that continued to invest at the same or higher levels had a net income after taxes of approximately $12,000. The research, however, was limited to companies that employed 100 or fewer people in the southern Minnesota area and therefore are not applicable to other geographic areas.