Optimation Ltd., a polymer packaging and converting specialist, is one small company that is suffering. Its highly specialised engineering work is in great demand but a lack of qualified staff has hindered growth. "We have a number of potential s awaiting a visit to discuss new projects, but we are tied up on existing orders because we are short of the necessary skills on the shop floor," Helen Mitchell, the company"s founder, says. And according to Alice Teague, the education and training officer at the Federation of Small Businesses, Ms. Mitchell"s experience is not unique. Many small businesses suffer skill shortages—particularly those at the technical craft level such as engineering and construction companies. "Small companies tend to be more vulnerable to skill shortages because they are unable to offer the same pay or benefits as larger companies so they struggle in the recruitment market." This is borne out by the experiences of Optimation. "Last year, we lost one of our best engineers to a rival company who offered him a better package. Being able to afford the salaries such skills demand is difficult for us," Ms. Mitchell says. The government-funded Learning and Skills Council (LSC) says that apprenticeships offer a solution to the skill shortage problem. "By addressing skills gaps directly apprenticeships can make businesses, small or large, more productive and competitive," Stephen Gardner, the LSC"s director of worked based learning, says. "Apprenticeships allow businesses to develop the specialist skills they need for the latest technology and working practices in their sector." There are 160 different apprenticeships available across 80 different industry sectors. They are open to businesses of all sizes and offer work-based training programmes for 16 to 24-year-olds. The training is run in conjunction with the Sector Skills Council to ensure industry specific skills are taught. Businesses are responsible for the wages of apprentices but the LSC contributes between ￡1,500 and ￡10,000 towards the cost of the training, depending on the industry sector. Slack ＆ Parr Ltd., a manufacturer of precision equipment for the aerospace industry, is one small company that has benefited from the scheme. More than 50 percent of the Kegworth-based company"s employees started as apprentices. "We opened an on-site training centre to ensure apprentices benefited from the highest quality of training," Richard Hallsworth, the managing director, says. "Six of our former apprentices are now in management positions. The scheme works for us because it helps keep costly external recruitment to a minimum." But Ms. Teague of the FSB warns that apprenticeships might not suit all small businesses. The apprenticeship scheme offers valuable vocational training but often small companies don"t have sufficient time or resources to devote to the apprentice. In the past there has also been a problem of poor quality candidates and low completion rates. "But some of these problems are being addressed. I know the Learning and Skills Council is looking at how small businesses might be able to share apprentices and so lessen the risk. Completion rates also seem to be improving so the scheme is certainly worth investigating." The experiences of Optimation indicate that