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67% of Scots SMEs Report Skill Shortages, Especially Tech Skills

Thom Carter

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67% of Scottish SMEs Report Skills Shortages, Especially Tech Skills
According to a new survey from The Open University in Scotland, two-thirds of Scottish SMEs report skill shortages — with digital tech cited as one of the prominent areas where SMEs are facing shortages in skills.

This latest research was conducted by Censuswide, the research company, on behalf of The Open University in Scotland. It posed a series of questions concerning the cross-sector skills gap to 200 owners and senior managers of small- and medium-sized enterprises based north of the border.

Specifically, the areas of people management (25%), finance (24%), digital technologies (22%), and project management (20%) are where respondents are especially encountering skills shortages.

In Scotland, the tech skills gap has been particularly pronounced, impacting companies both in and outwith the tech sector.

According to the Tech Labour Market, Scotland report from the British Computer Society (BCS), growth in demand for IT staff in Scotland has outstripped the UK as a whole, with increases of 89% and 45% respectively over the Q3 2017-2023 period.

Further, BCS’ report also outlined that job-related education and training among IT specialists was lower in Scotland than in any other UK nation or region — excluding Northern Ireland — during the third quarter of 2022.

Relatedly, The Open University in Scotland’s survey highlighted a lack of awareness among SMEs of the access they have to Scottish Government-funded employee training support, which could aid with alleviating the country’s tech skills gap.

The survey found that less than a third of businesses had heard of the Scottish Funding Council Upskilling Fund (31%) and the Part-Time Fee Grant (29%).

Further, only 32% of businesses surveyed knew about the Flexible Workforce Development Fund (FWDF), which offers SMEs access to £5,000 of free, flexible online training with the OU in Scotland, supported by the Scottish Funding Council.

75% of respondents said that they would be likely to consider accessing funds in the next 12 months.


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On the survey’s findings, David Allen, Senior Partnerships Manager, The Open University in Scotland, commented: “Despite two-thirds of businesses overwhelmingly reporting skill shortages, current financial and economic pressures mean training budgets are often squeezed at the expense of skills development. This does not need to be the case.

“Through the Flexible Workforce Development Fund, SMEs can access fully funded high quality, flexible online training that addresses many of the core skills shortages facing them.”

“Two-thirds of SMEs surveyed were unfamiliar with the available Scottish Government funded support. This is a core reason why the Open University in Scotland is determined to raise awareness of initiatives such as FWDF.

“A positive outcome of our research is 75% of business owners surveyed are now likely to consider accessing Scottish Government-funded training in the next 12 months. It’s an opportunity for the taking.”

Thom Carter

Staff Writer, DIGIT

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