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More small firms hiring freelancers to fill skills gaps

29 October 2024

Marketing is the main skills gap for SMEs according to a new survey of small business owners - and the answer for more than half is to bring in specialist freelancers.

A poll of 1,055 UK entrepreneurs by 1st Formations has found that one-third of business owners say they were least prepared to take on the marketing role when they started their business.

In fact, nearly one in three (29%) of those polled said they felt they lacked some of the skill sets needed to start and run their businesses.

Of those who felt unprepared, marketing was the skill many felt least confident in (34%), followed by lead generation (21%) and sales (14%). More than four in ten (44%) of small business owners want to increase their marketing budget within the next 12 months.

Small businesses turn to freelancers to plug skills gaps

A significant issue cited by the small business owners polled is the persistent shortage of labour and skills, with 37% experiencing recruitment difficulties. This has been worsened by the decline in skilled workers from EU nations - 58% of businesses say they are currently suffering from a lack of skilled workers from the EU.

However, the survey results suggest that attitudes to recruitment are also shifting - in particular, small firms are increasingly relying on contractors and freelancers rather than permanent staff:

  • 53% of small firms plan to hire contractors or freelancers;
  • 21% say they would recruit permanent employees;
  • 13% are looking for temporary staff;
  • 9% want to use zero hours contracts;
  • 4% are looking for apprentices.

SMEs increasingly favour remote working

It seems that many small businesses are looking to access a wider talent pool without geographical constraints; hiring freelancers that work remotely not only solves skills shortages but can lower staff overheads at the same time. In fact, the poll results show that 43% of small businesses are now looking to implement a fully remote working policy; 39% are opting for a hybrid set-up; only 18% have a full-time "work in the office" policy.

The survey also looked at the typical hours that business owners are working. The findings show that:

  • 32% of business owners say they work seven days a week;
  • 21% work six days a week
  • 28% work five days a week;
  • 8% work four days a week;
  • 6% works three days a week;
  • 3% work two days a week.

On a positive note, the findings reveal that 90% of business owners say they are happier since they set up their own business. Even so, 40% say they are making less money working for themselves than they were before; 37% say they make more and 23% earn the same amount.

Written by Rachel Miller.

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