A report commissioned by the Federation of Small Businesses (FSB) in Scotland revealed 51% of bosses felt taking on an apprentice could help them meet skills shortages.

However it also found the number of small firms taking part in the Modern Apprenticeships programme was relatively low, with only 17% of firms surveyed having trained an apprentice in the last three years.

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

The FSB said public sector funding was mainly only available when firms were taking on apprentices under the age of 20.

And the survey found 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 brokerage 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: "We also need to look at making the initial investment in an apprentice pay, not only in the longer term."

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

Mr Willox said: "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."

Labour leader Iain Gray also urged ministers to act, stating: "The Scottish Government needs to listen to what they are being told and launch an immediate drive to inform small businesses about how and why they should take on an apprentice."

He added: "Labour secured a promise from Alex Salmond in last year's Scottish budget to introduce 7,800 new apprenticeship places. This should be a floor not a ceiling.

"The fact is that many more companies say they would be willing to take on apprentices if they had more information and bureaucratic barriers were removed."

Meanwhile 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.

A Scottish Government spokeswoman described the FSB report as being "helpful in highlighting many of the issues that were identified at our apprenticeship summit earlier this year".

She added the Government had introduced a number of measures to support individuals and employers in Scotland.

The spokeswoman said that age restrictions on Modern Apprenticeship funding had been removed in sectors such as health and social care and retail.

She also pointed out the Government had announced funding to provide £2,000 to employers to Adopt an Apprentice.

And she stated: "We will ensure that the findings of the FSB report are considered as we continue to look at how we can build on the strength of the Modern Apprenticeship programme in Scotland."