Graduates are viewed as bringing new ideas, specialist skills and a higher level of knowledge to companies that employ them.

While the larger corporate businesses have long recognised their value however, there is still some reluctance within the small to medium-sized business (SME) sector to invest the time or money involved in the training process.

According to a study carried out by the Policy Research Centre of Sheffield Hallam University, some SME employers' perception of graduates is that they lack work experience and around 60% of those regularly recruiting graduates expressed a preference for those with work experience over those who were newly qualified.

Evidence suggests that while the training time for graduates/ non-graduates is about the same, each brings a different set of skills to the business.

Graduate qualities include the ability to learn, intelligence, ideas and imagination and good communication skills while the non-graduate can contribute more practical skills, work experience and common sense. Graduates are seen as having a prestigious effect on companies in terms of how they are perceived by their markets.

The majority of graduate- employing companies surveyed take on graduates for specific posts, and most of the graduates are likely to find themselves in managerial or professional roles - good news for those who are still working in retail-type jobs, awaiting the opportunity to step on the first rung of the ladder.

In all cases, there has been a call for universities to provide more information about SMEs and to encourage students to apply for jobs with smaller firms. Improved communication between the higher institutions and the small/medium sized enterprises is considered vital, since early networking will identify opportunities whereby the students could gain more work experience before graduation.

One proposal suggested that the Government ought to offer incentives to smaller firms taking on graduates since graduate recruitment has a positive effect on the economy, and there is also support for graduates being more pro-active in approaching firms to find out about job opportunities.

''It is clear that companies don't only need graduates with honours degrees, they need graduates with personality and who can work in teams and can communicate management skills,'' said Jim Lewars, training manager with Motherwell Enterprise Development Company and a co-ordinator of its graduate business development programme which supports existing businesses and any new businesses in the area.

''One big problem is that new enterprising businesses do not have enough people of the right calibre, yet at the same time, there is concern about graduate unemployment within the community.''

More traditional firms take graduate recruitment very seriously. Shona McLean, a partner with Burness Solicitors, said: ''We see people as potential partners so it is important to make sure we have people who will gel with the firm, people who can contribute in different ways.

''We make presentations to each of the five universities where there are law graduates, to encourage people to apply to our firm. We like to tell them what we are looking for and tell them about us. While obviously the academic qualifications are important, the fact that we would be looking for more than that sometimes surprises

graduates.

''They assume in many cases that when they come out of university, they have the technical ability, and that is enough, but what will distinguish one from another is what else they can bring, even if that just means being a good communicator, or having a sense of humour.''

Like most law firms, Burness specialises in a specific area, commercial law concerned with litigation and civil work, so it is important for graduates to recognise that before they commit to a traineeship.

The company takes on around seven graduates a year and this year, all the trainees ending their traineeships have been kept on.