Attracting the right talent is the biggest concern for regional mid-sized businesses and a major barrier to their growth – Grant Thornton event

THE majority of regional mid-sized businesses (MSBs) attending Grant Thornton’s ‘agents of growth’ summit in Birmingham cited a skills shortage as the biggest barrier to growth.

In a poll taken at the event, 58% of delegates said that a ‘talent gap’ is holding their businesses back, followed by market competition cited by 31% and access to capital (30%).

Grant Thornton’s growth summit, held at Edgbaston cricket ground,  featured a speaker panel comprising Sir Albert Bore, leader of Birmingham City Council, Gordon Johncox, managing director of Aston Manor Brewery, Jason Wouhra, director of East End Foods and regional chairman of the Institute of Directors, Charles Davies, director with the Centre for Economics and Business Research and Bill Parfitt, Grant Thornton automotive sector specialist.

Dave Munton, regional managing partner at Grant Thornton (pictured below right), said: “Members of our speaker panel and summit delegates returned several times to issues relating to attracting and retaining the right people with the right skills and the right attitude to help create growing, sustainable businesses.

“With our research highlighting the importance of mid-sized businesses to both the regional and the UK economy it is absolutely critical that the skills issue is tackled head-on.

“I believe there must be a more collaborative approach between businesses and education to ensure that we have a pipeline of skills to move our businesses forward. It is in all our interests to inform policymakers of this vital and urgent issue if we are to seize the opportunities ahead.”

In a keynote speech, Lord Paddy Ashdown – the former leader of the Liberal Democrats – said mid-sized businesses’ contribution to the economy through job creation and wealth , is growing at a faster rate than either big or small businesses.

Looking to the future, he said: “My guess is for the next 50 or 60 years it is companies who grow their intellectual capital who will succeed.

“And you have to meet customers’ tailored needs. It is a bespoke age. You need to use new technologies to meet the bespoke needs of customers. That will be telling for all of you.”

Lord Ashdown also highlighted the shift from vertical to flat business structures and the role that networks will play in business success from now on.

He said: “In the modern age the ability to work with others is the key ingredient for you company’s efficiency.”

“The most important part of an organisation is its docking point, the inter-connectors with others.

Munton, who described MSBs as an important but under-represented sector of the UK economy, added: “Lord Ashdown asserted that the ability to develop contact points both internally and externally to get closer to the strategies of key stakeholders is the critical business structure of our day and that creating such ‘docking’ points is where business focus should lie.

“From discussions with delegates other key success factors include avoiding complexity, keeping business plans simple, transparent and agile so that businesses can unlock their potential for growth.”

New research commissioned by Grant Thornton working with the Centre for Economics and Business Research, shows that the number of MSBs in the West Midlands has grown by 5.5% in the last 12 months, the largest increase of any region in the country. There are now 2,880 businesses employing between 50 and 499 people in the West Midlands, with a combined turnover of £46bn, up 7% from 2012.

Other issues highlighted at the growth summit included the need to accurately identify and then for government to support the mid-sized business sector and how to capitalise on export opportunities presented by ‘brand Britain’.