Small businesses finding it hard to hire staff

The Federation of Small Businesses has recently said that over 25% of small businesses have trouble finding skilled labour when they first start up. Recent figures have shown that over 90% of businesses in the private sector employee less than 20 people and the FSB said that this is because of the administrative and financial barriers involved when employing additional staff.

The FSB has called on the government to encourage internship schemes into small businesses for graduates and promoting education about enterprise for young people. John Walker is the chairman of the FSB and he has commented, “The private sector is currently heavily relied on to drive economic growth and entrepreneurs should be encouraged to set up a business and businesses should be urged to stay innovative. Often this requires deployment of additional staff and this is something the government should make possible.”

The All-Party Parliamentary Small Business Group is headed by Brian Binley who said, “The Skills Minister, John Hayes is doing a lot to help the employment situation for small businesses but unfortunately because of poor academic performance in young people there are not enough skilled workers. Numerousy and illiteracy rates are not what they should be and there is a lot of work to be done in the education sector. The education secretary is doing a lot to fix this problem.”