A recent study by the Institute of Directors (IoD) has found that the growing skills shortage in the UK is hampering the growth of start-ups, with over 40 per cent of those polled saying they had struggled to find employees with the right skills.
In addition, according to the study, a lack of access to funding is holding entrepreneurs back, with almost 40 per cent citing an inability to source finance as a barrier to growth and over half of respondents saying they had used family money to fund their business, while 45 per cent admitted to borrowing from friends.
As far as other sources of funding are concerned, 30 per cent of entrepreneurs said they had used crowdfunding and a third said that Government grants had been useful, while just over 20 per cent said that start up loans had helped.
Interestingly, over 60 per cent of people starting a business said they had been in full-time work when they began and just over a fifth had started their own business with the intention of having a positive impact on society.
Commenting on the study, a spokesman for the IoD said that the start-up revolution has clearly taken hold in he UK like nowhere else in Europe, however, he added that it is worrying that so many entrepreneurs have struggled to find the skilled employees they need to grow their business.
He added that the push to teach children digital skills is part of the long-term solution to this, but it is also crucial that Britain’s immigration system is open and easy to navigate. Meanwhile, as far as access to finance is concerned, it appears that innovations like crowdfunding and peer-to-peer lending are becoming mainstream options. However, there are layers of complexity attached, which need to be stripped away.