Ashleigh Dawson, graduate opportunities manager at Manchester Metropolitan University, on how to bridge the gap between SMEs and the graduates who want to work for them
Small and medium-sized enterprises (SMEs) are the backbone of the UK economy, accounting for over 99% of all UK businesses.1 They are an equally important, though often overlooked, part of the graduate job market.
Recent data from the Early Careers Survey 2025 by Prospects Luminate shows that SMEs are the most popular type of employer among students and graduates, with 75% expressing a preference for these organisations. This interest is particularly strong among undergraduates and those planning to remain in their home region or university city after graduation.2 For the first time, there are now more commuter students in the UK, than traditional residential students.3 As a result, the demand for opportunities with SMEs is likely to remain strong.
Graduates cite many reasons for preferring SMEs: closer personal relationships, more immediate responsibility, and the chance to contribute meaningfully from day one.4 Smaller teams often foster collaborative cultures, where early-career professionals can learn quickly and make a visible impact.
SMEs play a vital role in shaping early careers, but many of their opportunities remain hidden or unfilled.
A graduate demand mismatch
Despite this demand, there remains a clear disconnect between what graduates want and where they end up. The most recent data, from 2016/17, indicated only 29.8% of graduates actually began their careers with SMEs, highlighting significant barriers. SMEs often lack the brand recognition, recruitment resources, and established graduate schemes of larger employers.5
Without dedicated HR teams or graduate recruitment expertise, many struggle to reach, attract, and assess graduate talent.
Universities and careers services are increasingly working to address this imbalance by recognising the unique challenges SMEs face and providing targeted support to improve access to graduate talent.
Practical support for real impact
Manchester Met has developed several initiatives to bridge the gap between SMEs and graduates through tailored, efficient, and impactful recruitment support. This includes:
- Direct job communications to graduates, boosting the visibility of opportunities by sending bespoke, targeted communications through email campaigns and LinkedIn groups.
- Graduate interview events, an innovative recruitment event where SMEs and graduates meet on campus for short, prebooked interviews, eliminating common barriers for both graduates and employers. Often, employers have created roles that weren't originally advertised after meeting graduate talent they didn't want to miss out on.
- Inclusive job description support, helping SMEs write clear, accessible, and attractive job adverts that reach a wider and more diverse pool of graduates.
- Funding schemes, helping to reduce financial barriers for SMEs. These schemes also promote inclusive hiring, supporting employers to recruit from underrepresented groups, including neurodiverse talent.
- Graduate support, application guidance, and interview preparation advice, enabling graduates to effectively showcase their skills and suitability to SMEs.
SMEs play a vital role in shaping early careers, but many of their opportunities remain hidden or unfilled. By helping SMEs overcome recruitment challenges, connecting them with graduates in meaningful ways, and increasing the visibility of their roles, we can unlock this crucial segment of the graduate job market.
Notes
- Business population estimates, Department for Business and Trade, 2024.
- Early Careers Survey 2025, Prospects Luminate, 2025.
- Shaping higher education for commuter students, Wonkhe, 2025.
- SME Appeal: What attracts students to graduate roles in SMEs?, AGCAS, 2022.
- Key trends among UK-first degree graduates, Prospects Luminate, 2019.
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