Digital skills gap in small firms ‘holding back productivity’
PRODUCTIVITY GROWTH in the UK will continue to stall without government and industry action to tackle a digital skills deficit in small businesses, according to new research.
The research from the Federation of Small Businesses (FSB) found that more than a quarter (26 per cent) of business owners in England lack confidence in their basic digital skills and more than a fifth (22 per cent) believe a lack of basic digital skills among their staff is holding them back from increasing their digital and online presence.
FSB warns that small firms will be left behind unless the National Retraining Scheme, announced in the Budget to boost digital capability, is designed with them in mind.
Despite clear evidence that better digital capability spurs growth, a quarter (25 per cent) of small firms do not consider digital skills to be important to the growth of their business. That is why FSB believes demonstrating the benefits of digital to these firms will be critical.
Mike Cherry, FSB national chairman, said: “We know that embracing digital technology can help businesses in every sector to be more productive. Firms risk being left behind unless they have the skills to take advantage of technology to remain competitive and responsive to their customers.”
Mr Cherry added: “The Government should encourage more people to train by offering tax breaks to self-employed who attend training to develop new skills, not just to refresh existing skills.”