Access to skills concerns Northern entrepreneurs

ENTREPRENEURS in the North, who have led strong sales growth and job creation over the last two years, are concerned over skills and market conditions worsening.

In a survey ahead of this week’s annual Entrepreneur of the Year awards, Ernst & Young reveals that the 55 shortlisted individuals oversaw a 19% increase in sales in their businesses in the last year.

In total their businesses have delivered 24% growth in employment levels since 2009.  with the finalists’ employing 11,129 people in 2011, compared with 8,956 in 2009.

The North West has 26 finalists who will compete with 29 others from Yorkshire and the North East for the coveted ‘Ernst & Young’s Overall North Entrepreneur Of The Year’ at an awards dinner tomorrow night at the Lowry Hotel in Manchester.

Despite strong job creation, entrepreneurs still felt they were being held back on this front – with 22% saying a key challenge is not being able to recruit skilled employees. 

Elaine O’Donnell, North West Entrepreneur Of The Year Leader, said: “Dynamic businesses, led by entrepreneurs with the energy and insight to drive their businesses forward, have demonstrated that they are a major factor in rejuvenating the UK economy.

“However there is a sense that they are achieving these results despite serious issues around talents and skills shortages, which need to be tackled.”

More than a third of those surveyed (35%)said they were  fearful of market conditions becoming even more challenging, while 21% were concerned over access to funding and red tape. For 12% the biggest concern was rising costs.

The survey also found that 27% of Northern entrepreneurs are concentrating on penetrating and consolidating existing markets, compared to 19% looking to international expansion. 

Elaine O’Donnell added: “Recent changes in the Budget such as changing the 50p tax rate for their top employees, the improvements to the Enterprise Management Incentive and the lower corporate tax rates have helped entrepreneurs. Despite this, there remains some sharp lack of confidence about economic recovery among this crucial demographic.

“It also shows that the export strategy requires further impetus, with many remaining focused on staying at home or in existing markets. Though one in five UK entrepreneurs is focused on exports, this is still behind the EU average of one in four.”