Why are SMEs in London recruiting less staff?
With new statistics from the London Business survey revealing that recruitment figures are down 43% across SMEs in South London, a capital financing firm is keen to assess whether there is a staffing crisis sweeping UK businesses.
GIC Capital provides SMEs with vital funding through privately owned investment companies and is highlighting the fact that a number of factors including Brexit and a shortage of skills could be behind the drop in recruitment figures.
The latest immigration statistics, which were released in February, revealed that there was a drop in EU net migration, with the number of EU citizens coming over to the UK having decreased by 47,000, which could go some way to explain why more London companies are struggling to recruit, especially given the fact that EU migrants make up 20% of the workforces in 18 British industries.
Kennedy Zvenyika, Managing Director of GIC Capital said: “SMEs are the lifeblood of the British economy, but without the right staff being recruited, they will be unable to operate in the way that they need to. Recruiting more staff generally means that a business is growing, so these new statistics could suggest that SMEs are struggling to facilitate growth, perhaps as a result of difficulties obtaining appropriate finance.
“Over half of the SMEs in the UK are unable to access the funding that they need to grow their business, with the main reason for this being a lack of understanding about the options that they have available to them. Here at GIC Capital we take the appropriate steps to get to know all of the businesses that we work with and ensure that they understand the financing options that we have available and what will work best for them, whether that be business loans, retail overdrafts or expansion capital.”
While the impending doom of Brexit continues to hang over businesses head, the rise in a skill shortage across the UK is another factor set to taint recruiting across SMEs. At present, skill shortages are at a critical level in the UK, putting the future growth of businesses at risk.