The report found that the vast majority (78%) of small firms are currently struggling to recruit the right people, with 82% flagging a lack of relevant qualifications, skills, and experience among candidates.

According to the latest FSB research, small firms in England are being held back due to poor vocational skill provisions in schools, as well as challenges in accessing apprentiships, and inadequate incentives to retain and upskill. 

Tina McKenzie, FSB policy chair, said: ‘Our members tell us their growth potential is being held back by a lack of appropriately skilled staff, with vital roles going unfilled, ultimately harming the economy.

‘This skills and training deficit is a perennial issue, but far from an insoluble one. Our report sets out a roadmap for change on every level, from schools to apprenticeships to workplaces.