According to the latest Small Business Index from the Federation of Small Businesses (FSB), more than a third of small IT companies say that a lack of skilled staff is stifling growth.

The Small Business Index survey for the third quarter of 2023, sponsored by Google, posed a series of questions to 816 small business owners and sole traders across myriad sectors.

The survey found that 38% of small IT businesses cite the skills gap as a significant hurdle for growth, which is higher than businesses situated in industries such as manufacturing (28%), professional and technical activities (23%), and wholesale and retail (14%).

To help bridge the digital skills gap, the Federation has advocated that the UK government ensure all schools provide GCSE and A-Level computer science or ICT courses.

It also wants the government to ensure that skills bootcamps continue to play a crucial role in helping increase digital skills, seeing as they’re used by 76% of small firms.

Further, the group wants to see the government make training in new skills tax deductible for the self-employed, allowing people to pivot into new areas of business, and for the government to continue covering 95% of apprentice training costs for small businesses.

Tina McKenzie, FSB policy and advocacy chair, remarked: “Small businesses are eager to grow but many find themselves at a standstill, with skills shortages putting a brake on their ambitions. At a time where the economy needs it the most, firms are left hamstrung.”

“As we shift to the digital age, too, it’s essential to support the self-employed to branch out and upskill without being held back by the tax system,” McKenzie also noted.

“One of the main things we hear from our members is how difficult it is to recruit at all skills levels, which is why we need to invest in lifelong learning. This cannot happen overnight but will unfold over time and needs supply-side reforms to make it work.

“The future of our economy relies on skills. Unless we create pathways for small businesses to tap into a readily available talent pool, the economy is at risk. This is more than just patching over a hole in the ceiling – it’s about empowering a workforce that can propel the economy forward.”

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Relatedly, earlier this month, DIGIT covered separate research from ServiceNow, the digital workflow company, regarding the professional world’s desire for AI and coding to be compulsory within curriculums.

The firm’s research revealed that the majority of UK workers (73%) agree that AI and coding should be mandatory in formal education, providing young people with the digital skills that they may need for their future career.

Further, and more generally, almost three quarters (72%) feel there should be a standardised qualification for digital skills as to instil trust in employers they’re recruiting the right talent.