Midlands entrepreneurs see bright future but skills shortage poses threat – EY

RESEARCH from accountancy and advisory firm EY has revealed that 90% of entrepreneurs in the Midlands have increased their headcount, with 30% of these businesses creating more than 50 new jobs.

The EY survey also revealed that almost all of the entrepreneurs surveyed (93%) expect their turnover to increase in the next three years.

However, just 30% feel that they are able to attract the right talent, suggesting that the Midlands skilled labour market remains challenging for many businesses.

EY surveyed 30 Midlands entrepreneurs to assess how their firms have performed in recent years and whether they expect to grow in the future, as well as to gather their views on the factors that they feel can help or hinder growth.

The majority of entrepreneurs surveyed in the Midlands, have well-established businesses – 67% of respondents have run their companies for at least a decade.

TheBusinessDesk.com has teamed up with EY to promote and celebrate the entrepreneurial spirit of the region and share insights into the opportunities and challenges entrepreneurs are facing. To read more click here.

EY found that 77% of entrepreneurial businesses in the Midlands have seen growth in their turnover in the last year, compared to75% nationally, with 67% witnessing a turnover increase of more than 5%.

Looking ahead, over the next three years, 93% of Midlands entrepreneurs surveyed expect their business to grow further, with 70% expecting annual growth of more than 10%.

Adrian Roberts, regional Entrepreneur of the Year leader at EY in the Midlands, said: “Over the past 12 months the economy has strengthened, and this is reflected in the confident mood amongst Midlands businesses.

“Entrepreneurs have been recruiting in significant numbers and seeing reasonable growth over the past year. But, more importantly, nearly three-quarters are planning ahead for double digit growth.

“The Midlands, like the wider UK, is open for business, and our entrepreneurs are leading the way in terms of increasing their turnover and headcount.”

“Overall, the future looks bright for Midlands entrepreneurs, with many delivering strong performance in recent years, and expecting good times ahead.

“However, our survey highlights that while businesses are increasing headcount at a considerable rate and are expecting to grow even more over the next year, the right people may not be there to fuel that growth.

“For entrepreneurs to sustain their expansion plans, they need to demonstrate fresh thinking and an innovative approach to attracting talent from a global pool. This will help them stay ahead of the curve as the economy recovers and the war for talent intensifies.”