Small to medium-sized businesses (SMBs) account for 99.9% of private sector firms in the UK, with a high desire for growth reported in 2014 despite significant skill gaps, particularly in sales, marketing, IT, and leadership. Budget constraints, time pressures, and concerns about employee retention hinder investment in skills, which could impact future growth and competitiveness. Additionally, 68% of SMBs outsource some activities, with IT, marketing, and sales being the most common outsourced functions, citing time and cost savings as key benefits.

1. small MEDIUM
27 % 21% 15%
sales &
marketing
skills
IT leadership
35% 12%
62.5%
Outsourcing
benefits
micro
0-9
employees
10-49
employees

2. Small to Medium sized Businesses:
0-9 employees Micro
10-49 employees Small
50-249 employees medium
SMBs account for 99.9% of private sector firms in the UK
The south east & greater London account for 1/3 of the UKs SMBs
SMB attitudes and skill gaps
An all-time high
62.5% report they want to grow in 2014
61% highlight a gap in skills amongst their employees
Reported gaps are in:
27% Sales & Marketing skills
21% IT
15% leadership
Preventing investment in skill:
38% budget
35% time pressures
12% concerned investing in staff who may then leave
Potential skill gap could::
44% damage future growth potential
39% inhibit their competitive edge
37% make them less profitable
24% stifle innovation
SMB Outsourcing trends
68% currently outsource some business activities
Top 5 outsourced functions year-on-year comparison
2013:
1.IT 32%
2. Training 23%
3. Legal 22%
4. Design 16%
5. Finance 15%
2014:
1. IT 23%
2. Marketing (inc event management) 23%
3. Sales & customer service 18%
4.Distribution network 13%
5. Finance 10%
Outsourcing benefits:
68% Save time & money
66% Concentrate on their core business
48% Improved efficiency