Scotland’s small to medium-sized enterprises (SMEs) find themselves grappling with a significant skills gap that hampers their business growth and profitability.
Two-thirds of these firms have raised the alarm, reporting deficiencies in critical areas of operation that are placing undue pressure on their ability to compete and thrive.
The Skills Shortage Problem
A recent study conducted by Censuswide, on behalf of The Open University in Scotland, brings the extent of this issue into sharp focus.
Alarmingly, 67% of SME owners and managers have noticed skills shortages impacting their enterprises’ potential.
This figure escalates to a staggering 83% for businesses accommodating between 10 and 49 employees, underlining a pervasive issue among SMEs.
The Most Affected Areas
The survey identified several sectors where these skill deficiencies are most keenly felt.
People management topped the list at 25%, closely followed by finance at 24%.
Skills in digital technologies and project management are also lagging behind, clocking in at 22% and 20%, respectively.
The Green Transition
In the face of such challenges, Scottish SMEs remain resilient and forward-thinking, with a significant 85% planning to invest in eco-friendly staff training.
These businesses are embracing innovative and sustainable methods of operation, with 37% seeking to make their business more sustainable and 32% showing interest in renewable energy.
Funding and Support
The pathway to upskilling is fraught with its own challenges. Notably, a lack of awareness of available governmental assistance impedes progress.
Less than a third of businesses surveyed (31%) were familiar with the Scottish Funding Council Upskilling Fund or the Part-Time Fee Grant.
Moreover, just over 32% had heard of the Flexible Workforce Development Fund – a scheme that offers £5,000 of free, flexible online training from the Open University in Scotland.
Opportunities for Future Growth
Despite these obstacles, there’s a silver lining. A promising 75% of respondents expressed their willingness to consider tapping into these funds in the forthcoming year.
This willingness may pave the way for closing the skills gap and bolstering business growth.
Summary
There’s an urgent need for Scottish SMEs to address the skills gap to ensure sustainable growth and competitiveness.
By raising awareness of the available support and implementing it effectively, they can create a well-rounded, skilled workforce ready to face future challenges.
As such, there’s no better time than now for SMEs to explore these opportunities and pave the way for a brighter, more prosperous future.
Small businesses access unsecured, fast funding from Got Capital. As an alternative lender, Got Capital offers financing solutions specifically designed for and catered to the needs of SMEs.
