Small firms fear staff skills gap

TWO THIRDS of small and medium sized businesses claim that their staff suffer from a skills shortage, which could damage their growth.

Of those who said that their workforce is lacking in skills, 44 per cent think future growth could be affected negatively, 39 per cent believe that they could become less competitive, and 37 per cent fear diminishing profits.

According to research by Lloyds, a majority are considering investing more in skills, but a full 30 per cent say they will not have the budget to invest. David Oldfield, of Lloyds, said: “Clearly there are some significant hurdles – and budgets are of course tight – but it is crucial that businesses do everything they can to develop skills.”