Small firms bemoan lack of skills from job applicants

Britain’s smallest businesses are being stifled in their attempts to grow by a lack of candidates with the right skills, according to a report released today.

Research from the British Chambers of Commerce (BCC) reveals that 55 per cent of micro businesses – those with fewer than ten employees – are looking to take on staff.

But the survey of more than 2,000 firms found that half are having problems filling vacancies.

Adam Marshall, director of policy at the BCC, said that, despite high levels of unemployment in the UK at present, many companies are frustrated by the quality of applicants.

“There is a real mismatch between business needs and local skills supply, with many businesses unable to find school-leavers or even graduates with the right mix of skills,” he said.

Only 22 per cent of small businesses surveyed said they would be confident that a school-leaver with A-levels or the equivalent would have the necessary skills for their business, while just 36 per cent thought university leavers would be up to the job.

Marshall said that businesses complained at both a lack of specific skills and a poor standard of general education.

He said the current system, where college and degree courses were funded based on demand by individuals, was flawed and should be overhauled in favour of one that offered places based on demand from potential employers.

“At a time when we need to fight hard for every new private sector job, Britain needs a skills system that delivers what businesses require,” he said.

“Government must recognise this and put more control in the hands of employers when it comes to training the nation.”

Colin Borland, head of the Federation of Small Businesses in Scotland, said 93 per cent of Scots firms employed fewer than ten people and this “army of businesses” would be vitally important in the economic recovery.

But he added: “Scotland is the highest qualified part of the UK outside London, but businesses still report skills shortages. A quarter of candidates for jobs in small businesses struggle with literacy or numeracy.”

David Watt, executive director of the Institute of Directors in Scotland, said employers frequently complained that school-leavers and graduates did not understand how businesses worked, and lacked the team-work, communication and entrepreneurial skills required.

He suggested that work placements could be provided to give young people a better understanding of the industry they planned on working in.

He said: “Schools, colleges and universities should all have strong links to employers.

“Most employers I speak to are very happy to engage with education providers but they don’t want to make the first move.”