This paper presents the findings of process oriented research into eighteen small and medium sized enterprises’ (SME’s) experiences when deciding to participate with New Apprenticeships for the first time. The focus of this work is to explain how and why contextual conditions and processual elements interacted to influence owner/managers to adopt or reject New Apprenticeships. The paper also describes in detail methodological issues encountered when analysing interview data and how these issues were resolved by application of grounded theory techniques allied with other qualitative techniques. The findings provide insights for policy and practice, detailing the organisational decision-making that is associated with New Apprenticeships under certain circumstances, and how these might be assessed and managed.