Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Business

SKILLED STAFF SHORTAGES CHECK POST BREXIT SMALL BUSINESS BULLISHNESS
SKILLED STAFF SHORTAGES CHECK POST BREXIT SMALL BUSINESS BULLISHNESS

Published : , on

  • Albion Ventures’ fourth Albion Growth Report shows that 73% of SMEs predict growth over the next years
  • Finding skilled staff the biggest concern for UK SMEs
  • Manufacturing and tech firms are the most bullish
  • East Midland-based entrepreneurs are the most bullish
  • Over a quarter of firms would consider investment from venture capital, private equity or business angel

 Nearly three-quarters (73%) of small businesses with over five employees plan to grow dramatically or moderately over the next two years, according to a new report1 launched by Albion Ventures, one of the largest independent venture capital investors in the UK. Only 5% think they will shrink or wind down.

Based on interviews with 1,000 SMEs, the fourth Albion Growth Report sheds light on the factors that create and impede growth in post-Brexit Britain.

Finding skilled staff is the biggest challenge

With 50% of small businesses with over five employees planning to grow their headcount over the next two years, finding skilled staff tops the list of challenges business owners face, up from third place in 2015.  It is a particular problem for manufacturing, construction, medical and healthcare companies. In sixth place, the decision to leave the EU ranks below perennial challenges such as red tape, regulatory change and the difficulty of accessing new markets.  Lack of access to finance – one of the major problems voiced by SMEs during the recession – has fallen to 13th place from fifth last year.

Manufacturers and tech firms most optimistic

On a sector basis, manufacturing companies are the most bullish about growth and the most relaxed about Brexit while retailers and construction companies are the gloomiest.

Brexit – a split verdict

Businesses are overall split on the impact of Brexit with a third (36%) thinking it will help them enter new markets and 41% expecting it to be a hindrance.  However, the report shows significant differences among SME owners towards Brexit by region, size and age that show similarities to the result of the vote in June.  Among those groups that are most concerned is millennial business owners aged under-35, of whom half (54%) think Brexit will hinder their ability to access new markets. Leaving the EU ranks as the single biggest obstacle to growth among small business owners in Scotland and was in third place among those in London.  Those groups that are the least concerned about Brexit include sole traders, 56% of whom said it would have no effect on their growth potential 

East Midland-based entrepreneurs are the most bullish

Regionally, business owners in the East Midlands were the most optimistic about growth (70%), followed by the East of England (69%) and London (65%). Wales was the most pessimistic region in this year’s report with only 39% foreseeing growth.

Appetite for equity finance

Over a quarter of firms would consider investment from venture capital, private equity or business angel, rising to a third among larger firms with more than five employees. On a sector basis, over half (52%) of IT and telecom firms are open to equity finance while construction trails at just 13%.  

Patrick Reeve, Managing Partner at Albion Ventures, said: “Against a backdrop of profound change, one element that has remained reassuringly unchanged is the optimism underlying the UK’s small businesses. Firms are looking to grow their headcount and productivity is on the increase. The biggest barrier to growth, finding skilled staff, is generated by success rather than failure.

“The downside is that the economy is coming under capacity constraints at a time of considerable political uncertainty. While many of the pressures on growth we have seen in recent years have eased, the skills that enable us to compete are in short supply.”

Uma Rajagopal has been managing the posting of content for multiple platforms since 2021, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune. Her role ensures that content is published accurately and efficiently across these diverse publications.

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post