SMEs suffering from lack of skilled workers from EU nations

This comes as new government data has revealed that 99.8% of businesses in the UK are made up of small and medium-sized enterprises (SMEs), representing a large majority of businesses nationwide.

The new survey conducted by 1st Formations, the UK’s leading company formation agent, has uncovered insights from 1,055 small business owners to understand the impact of Brexit and governmental changes on operational practices.

The lasting impact of Brexit on small businesses

Numerous SMEs have expressed concerns about the negative effects of Brexit, highlighting various challenges since the UK left the European Union.

The results revealed that 2 in 5 (41%) business owners have felt negatively impacted, while just 8% have felt a positive impact from the change.

A significant issue and common trend was found to be the persistent shortage of labour and skills, with 37% experiencing a shortage within the sector.

According to small business owners, this has been worsened by the decline in skilled workers from EU nations with over half (58%) of businesses currently suffering from a lack of skilled workers from the EU.

SME owners feel the government puts bigger businesses ahead of theirs

The survey results also revealed that over 3 in 5 (65%) SME owners feel that the government puts bigger businesses’ needs ahead of theirs, with decisions primarily benefiting larger corporations.

This perceived favouritism has prompted many business owners (50%) to believe that a Labour government will be more responsive to the requirements of smaller businesses.

Graeme Donnelly, CEO of 1st Formations, says: “Our latest survey has uncovered some significant obstacles that UK small businesses are currently encountering. Many SME owners are feeling the impact of changes brought about by Brexit, particularly concerning a noticeable shortage of labour and skills.

The limited access to skilled workers from the EU has

What stands out is the wide-ranging nature of these difficulties. Small businesses are facing increased operational complexities and challenges in talent acquisition, navigating a markedly different business landscape. These issues extend beyond mere short-term adjustments; they signify big changes that many SMEs are still trying to address.

Given these findings, both the small business community and the government must work together to tackle these challenges. The resilience of our SME sector is essential for the overall economic well-being of the UK.”

To view the full insights from the study, visit: https://www.1stformations.co.uk/blog/survey-uncovers-trends-transforming-small-businesses/