An Exploratory Study into the Perceptions of Politicians and SME Owners on how the Living Wage Agenda can Impact SMEs
Citation
(2015) An Exploratory Study into the
Perceptions of Politicians and SME
Owners on how the Living Wage
Agenda can Impact SMEs, no. 95.
Abstract
The Living Wage (LW) agenda is ever growing, with more organisations
increasingly choosing to pay all staff a LW. After thoroughly reviewing literature on
the issue, it was clear that little research had been done previously. A research project
looking into the impacts LW can have specifically on Small to Medium Enterprises
(SMEs) proved to be a niche where no research had been done, which created a
strong rationale for research. This study will analyse the perceptions from two points
of view: Politicians, and SME owners, in order to assess how the living wage agenda
can impact SMEs. Objectives of the study are: (i) Provide an overview of the LW
concept (ii) To evaluate the extent to which SMEs are able to implement a LW in
Scotland, with the opportunities and challenges it carries (iii) To analyse politicians'
perceptions of the LW, and their role in its implementation in Scotland.
Three Politicians in high roles of government participated in this study, as well as
eight Owners of SMEs. These participants were each involved in a semi structured
interview and gave their valued perceptions on the research topic. Findings from the
process suggest that there are many benefits to be seen by an SME paying employees
a LW. With that being said, it was felt that many SMEs would struggle to afford the
costs associated in paying a LW for their own individual reasons. A strong opinion
was gathered from participants, arguing that more organisations paying a LW would
be great for the wider national economy and beneficial to SMEs. It was also found
that there is a role for government in the LW agenda, and more specifically in
helping SMEs that pay, or are aspiring to pay a LW. SME owners not paying a LW
felt that they would consider paying all staff a LW if government help was offered.