Many SMEs being held back by lack of skilled staff

A recent survey has revealed that many small businesses believe a lack of skilled staff will prevent them from further growth over the coming year.

This is according to the latest Small Business Index (SMI), conducted by the Federation of Small Businesses (FSB).

The findings show that skills shortages are an issue for numerous sectors, including construction, manufacturing, information and communication and retail.

The FSB is suggesting that in order to make it easier for SMEs to upskill, the government should:

• Ensure all schools can provide GCSE and A-Level computer science or ICT courses.
• Ensure skills bootcamps (used by 76% of small firms) continue to play an important role in helping increase digital skills.
• Continue to cover 95% of apprentice training costs for small businesses hiring apprentices, easing the upskilling process, and offering incentives for growth.
• Make training in new skills tax deductible for the self-employed, allowing them to pivot into new areas of business.

FSB Policy and Advocacy Chair Tina McKenzie, commented, “Small businesses are eager to grow but many find themselves at a standstill, with skills shortages putting a brake on their ambitions. At a time when the economy needs it the most, firms are left hamstrung.

“This impact is especially sharp in construction, where small housebuilders are instrumental. As we shift to the digital age, too, it’s essential to support the self-employed to branch out and upskill without being held back by the tax system.

“One of the main things we hear from our members is how difficult it is to recruit at all skills levels, which is why we need to invest in lifelong learning.  This cannot happen overnight but will unfold over time and needs supply-side reforms to make it work.

“The future of our economy relies on skills. Unless we create pathways for small businesses to tap into a readily available talent pool, the economy is at risk. This is more than just patching over a hole in the ceiling – it’s about empowering a workforce that can propel the economy forward.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.