Day: May 31, 2023

Two-thirds of Scottish SMEs report skills shortages continue to impact business success

67% of Scotland’s small and medium-sized enterprise (SMEs) owners and managers have reported that skills shortages are impacting their business growth and profitability, according to new research by Censuswide, on behalf of The Open University (OU) in Scotland.

For businesses with 10-49 employees, this rocketed to 83%. 

The survey, completed by 200 owners and senior managers of Scottish SMEs, identified people management (25%), finance (24%), digital technologies (22%) and project management (20%) as the top areas in which respondents were experiencing skills shortages. 

Environmental concerns and their impact on business growth are also front and centre for Scottish SMEs, with 85% of organisations planning to invest in ‘green’ staff training. Priority training areas included developing innovative and sustainable ways of doing things (37%), making their business more sustainable (36%) and renewable energy (32%).   

The survey also highlighted a lack of awareness among SMEs of the access they have to Scottish Government-funded employee training support. Less than a third of businesses had heard of the Scottish Funding Council Upskilling Fund (31%) and the Part-Time Fee Grant (29%). 

32% of businesses surveyed also knew about the Flexible Workforce Development Fund (FWDF), which offers SMEs access to £5,000 of free and flexible online training with the OU in Scotland, supported by the Scottish Funding Council. However, more positively, 75% of respondents would be likely to consider accessing funds in the next 12 months.

David Allen – Partnerships Manager for Open University.

David Allen, Senior Partnerships Manager, The Open University in Scotland, said: “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.”

The survey findings also align with the experience of the Scottish charity Health in Mind, which recently undertook a training programme in partnership with the OU, utilising FWDF support.

Flora Henderson, Alliance Manager, Health in Mind commented: “The cost-of-living crisis, as well as the ongoing impact of the COVID-19 pandemic, has resulted in a tremendous increase in demand for our services. At the same time, staff are affected by workload and a continued impact on staff absence levels.

“It was a priority to continue to offer genuinely valuable development opportunities, intended to help staff feel supported to grow and develop in their role. The FWDF has allowed scarce resources to have more impact and encouraged wider participation than would otherwise be possible.”

For more information on the OU’s flexible online training and the Flexible Workforce Development Fund visit: https://www.open.ac.uk/business/fwdf  

303,000 children are receiving £25 weekly Scottish Child Payment

The Scottish Child Payment is now being received by the families of more than 300,000 children and young people, according to official statistics.

New figures published yesterday show that 303,000 children were receiving the payment at the end of March.

The total amount of the benefit paid out since its February 2021 launch now stands at £248.6 million.

Scottish Child Payment was extended to include all eligible children until their 16th birthday and increased to £25 per child per week in November last year.

First Minister Humza Yousaf, who yesterday visited Castlebrae High School to hear how the Scottish Child Payment is making a difference to families, said: “The game-changing Scottish Child Payment is designed to tackle child poverty head-on and lift families out of poverty.

“Families in Scotland are able to benefit from five family payments delivered by the  Scottish Government which could be worth more than £10,000 by the time an eligible child turns six and over £20,000 by the time an eligible child turns 16.

“I am pleased at the take up of the Payment but we still want to get that money to all of those eligible. I would encourage anyone who thinks they may be eligible to find out more and apply.”

Tackling poverty and protecting people from harm is one of three critical missions for the Scottish Government and it will continue to tackle child poverty via its second child poverty delivery plan for 2022-26, Best Start Bright Futures.

Earlier this month the First Minister convened a cross-party anti-poverty summit to listen to the views of people with lived experience of poverty, the third sector, academics, campaigners and other interested parties.

The First Minister added: “The Scottish Child Payment is one of an ambitious range of actions to support families immediately and in the long term.”

Polly Jones, Head of Scotland at the Trussell Trust, said: “Everyone in Scotland should be able to afford the essentials but we know that more families are struggling than ever before.

“We have long called for the Scottish Child Payment to be increased and extended to all children up to 16 and so it’s very encouraging to see the positive impact this is making, reaching more families and getting more cash into the pockets of people who need support the most.”