Business News Round Up (16/06/2022)
Fifth of UK SMEs halt growth and investment amid economic pressures
One in five (20%) UK SMEs are planning to halt growth, investment, and finance ambitions as they navigate financial pressures, the Association of Chartered Certified Accountants (ACCA) and the Corporate Finance Network (CFN) SME Recovery Tracker found. This figure reportedly rose to 30% in London, specifically with 25% predicted to not survive rising costs and rates over the next 12 months. The survey found that surging inflation, heightened supply chain issues, the energy crisis and complications gaining access to finance are causing “severe” interruptions to their long-term ability to grow. In the next year, almost half (41.9%) of SMEs have already, or plan to, increase checks on the credit status of their customers and around a third (32.6%) on their suppliers. Additionally, 40% of UK businesses are looking to secure more finance in the short-term from mortgages and 23% from overdrafts and unsecured loans. In Wales, this rose to 59% and 39% respectively. ACCA said growth is also at risk of being restricted due to a shortage of skills. Although over two thirds (69%) of UK SMEs have adopted a hybrid or remote working model since the pandemic, over half (52%) are struggling to recruit more staff at the required skill level. This number jumps to 69% in Wales and 53% in the rest of England, while Scotland and London note less of a struggle for talent at 29% and 24% respectively.
Cost-of-living crisis and staff shortages ‘threaten hospitality growth’
The hospitality and leisure sector’s post-pandemic recovery could be severely hampered by the cost-of-living crisis and a widespread lack of staff. This is according to a report from Barclays Corporate Banking, which shows that 68% of sector operators in Scotland are confident of growth this year, predicting an average 23.6% uplift in revenue compared with pre-pandemic levels. This equates to a £2.1bn rise in annual turnover compared with 2019, and a £3.5bn increase on 2021. However, the predicted growth could be stifled by soaring supplier costs and a scramble for talent. Hospitality and leisure businesses in Scotland report that their utility bills have already spiked by 36% year-on-year on average. Meanwhile, 96% of companies in the Scottish sector are struggling to recruit personnel, with vacancies for cleaning staff (22%), senior management (20%), and finance staff (20%) causing the most issues. The report is based on market research conducted during April by Censuswide among 605 senior managers within UK-based hospitality and leisure businesses. Almost a fifth (16%) of bars and restaurants are finding it difficult to hire waiting staff, and over two fifths of gyms and leisure centres (42%) cannot find fitness instructors. Recruitment issues also extend to back-of-house and c-suite roles: 17% of operators are having trouble sourcing finance staff and 16% said the same about senior management positions.
https://www.insider.co.uk/news/cost-living-crisis-staff-shortages-27248759
North West a hot-bed for digital career opportunities
New research has revealed that the North West has the most available digital opportunities outside London and the South East with more than 40,000 tech job opportunities already in the North West this year. The data confirms that 12% of all available jobs in the region are in the tech sector, and 26% of people surveyed believe that upskilling themselves in new digital skills will allow them to earn more in the future. Strong North West tech hiring is revealed as the number of tech job opportunities across the country has hit a 10-year high, following soaring demand for tech products and services over the past two years. The data has been produced by job search engine Adzuna and was analysed by Tech Nation for the UK’s Digital Economy Council.. It showed that there were around 870,000 tech and digital job vacancies available across the whole UK between January to May 2022, the highest number ever recorded since Adzuna began collecting data in May 2012. Since April, the number of open roles has adjusted down slightly (-1.59%) but hiring continues to remain 42% higher than in 2021. The UK is the third largest tech ecosystem in the world, with tech companies across the country raising £12.4bn in venture capital funding this year to date, more than the whole of 2020 (£12bn).
More than one in 10 jobs in Scotland now in tech sector, new figures show
More than one in 10 jobs in Scotland are in the rapidly-growing tech sector according to new figures by jobs search engine Adzuna. Research shows 13.22 per cent of jobs north of the border are in digital as hiring reached a 10-year high in the sector. The figures, which were analysed by Tech Nation on behalf of the UK’s Digital Economy Council, showed there were 870,000 tech and digital job vacancies advertised across the UK between January to May 2022. Of those, more than 20,000 were in Scotland. Those roles attracted an average salary of £52,893 across the country, with separate data showing Scottish start-ups and scale-ups raised £281m in funding this year. That was more than the total raised for the whole of 2019 (£253m). Digital secretary Nadine Dorries said: “The UK is enjoying a golden age in tech. Not only are we one of the best places in the world to start digital businesses, but there are countless opportunities for people to enter the sector and flourish in their career. We’re working hard to open doors for people from all walks of life so that they can gain the skills and knowledge needed to make the most of our booming tech industry.” Growth in Scottish tech jobs comes as the country as a whole is seeing an increase in tech roles. There were around 870,000 tech and digital job vacancies available across between January to May 2022, the highest number ever recorded since Adzuna began collecting data in May 2012.