Fewer than a fifth of small businesses have taken on an apprentice in the last three years, according to a new study.

A report commissioned by the Federation of Small Businesses (FSB) in Scotland has revealed that only 17% of firms have taken part in the Modern Apprenticeship programme since 2006 despite more than half of bosses saying it could help them meet skills shortages.

70% of firms who had not taken on an apprentice in this time cited a lack of understanding about the process as a reason, while the cost of funding it was a concern for almost half of all businesses.

Public sector funding is mainly only available when firms take on apprentices under the age of 20, with the survey finding age restrictions on funding were a concern for 53% of firms who had taken on an apprentice in the last three years.

FSB Scottish policy convener Andy Willox called for a service to be set up to connect small businesses with would-be apprentices.

He said there needed to be "a real, co-ordinated drive to help firms looking to take on a Modern Apprentice navigate the system and find the right person for the job - regardless of background or age".

Mr Willox added: "Apprenticeships are good for the apprentice, good for the business and good for the economy. But too many small firms wouldn't even know where to start in recruiting one. Elsewhere, bureaucratic barriers deter small businesses from creating more modern apprenticeships.

"It is high time that the Government properly established the proportion of modern apprentices being recruited by the smallest businesses and set out how this proportion is going to be increased in the coming years."

He made the plea as the report, called Modern Apprenticeships: The Small Business Perspective, was launched.

Jacqui Hepburn, the director of the Alliance of Sector Skills Councils, Scotland said: "There are currently over 30,000 individuals undertaking modern apprenticeships in Scotland, and they are one of the jewels in the Scottish skills system.

"It is important for Scotland to continue to build on this by opening up new opportunities for the development of Modern Apprenticeships, not only in traditional sectors, but across the full range of occupations that contribute to Scotland's economy."