UK 
United States
New data has warned that SMEs face a tough time in the oncoming months. Not only are they suffering with a “cost-of-work” crisis which could result in many small business owners being forced to put up their prices, hampering their ability to compete with large, more resilient companies in their sector, but they’re being hit by the double whammy of the “war for talent”, which is in some instances stifling companies’ ability to grow.
New research from Gatsby – a charitable foundation which supports and strengthens technical education – has found that 81% of small businesses have serious recruitment concerns. The researchers found that more than half (55%) of those surveyed cited a lack of skilled candidates as a top concern and one in five (18%) are uncertain about how to engage with the education and skills landscape.
There are estimated to be 5.5million small businesses in the UK (with 0-49 employees), accounting for 97% of all employers– so any hits to this sector can have a serious impact on household incomes all over the county.
And the recruitment problem runs deeper than simply lack of access to talent. Earlier this year, research by the Small Business Index, compiled by the Federation of Small Businesses (FSB), found that small business owners say they can’t afford to take on the staff they need to grow. More than three-quarters of firms (78%) said their costs were rising, while 40% said that profits were being hit by inflation.
