Top Concern For 58% of SMEs Facing Workforce Challenges

Challenges in expertise acquisition, value administration, and ESG reporting emerge because the three high hurdles for SMEs in 2024.  

New analysis from the Affiliation of Chartered Licensed Accountants (ACCA) highlights the urgent challenges and strategic innovation alternatives for small and medium-sized enterprises (SMEs).  

The research, SMEs: Enterprise challenges and strategic innovation alternatives,reveals three foremost challenges: escalating prices, workforce and expertise administration, and the evolving ESG (Environmental, Social and Governance) reporting agenda. 

Fazeela Gopalani, Head of ACCA Center East, stated: “As we enter the brand new 12 months, SMEs are grappling with a large spectrum of points. The inflation problem has been a really world phenomenon, as central banks raced to manage inflation initiating among the most restrictive financial insurance policies the world over seen in latest occasions.” 

“Our analysis additionally means that SMEs proceed to wrestle to each purchase and retain key expertise, in addition to persevering with to face vital wage stress and pay calls for inside their organisations. Upskilling can also be a important space of focus as technological change accelerates. By addressing these challenges head-on, SMEs can unlock new progress avenues and strengthen their market place,” Gopalani added. 

The report emphasises the necessity for tailor-made methods that may assist SMEs navigate the evolving enterprise panorama efficiently, together with embracing innovation, optimising useful resource administration, and staying forward of regulatory adjustments. 

Key findings embrace: 

Value pressures and the economic system: SMEs face vital will increase in utility costs and provides, with 58% of companies highlighting increased prices as their high concern.  

Workforce and expertise administration: The research reveals a notable rise in job vacancies and challenges in filling particular roles. Elevated job vacancies for skilled staff had been reported by 31% of companies, and 14% had been unable to seek out appropriate candidates for clerical staff, technicians, and repair and gross sales staff.  

SMEs and the ESG agenda: Practically 50% of SMEs at the moment are required to offer ESG info, highlighting the rising significance of sustainable practices. Nonetheless, the report identifies a spot within the means to generate and handle this knowledge, presenting each a problem and a chance for SMEs. 

“As danger proliferates, there’s a wealth of latest and rising regulation impacting companies, most clearly within the space of ESG. Regulation and reporting necessities will proceed to evolve quick on this space, and SMEs have to be future able to accommodate growing calls for,” says Gopalani. “In these testing occasions, SMEs should pivot in the direction of progressive methods to navigate the complexities of value pressures, expertise retention, and sustainable practices. Our analysis not solely identifies the important hurdles but additionally provides a roadmap for SMEs to emerge stronger and extra agile.”  

The roadmap recommends the adoption of digital applied sciences, enabling SMEs to streamline operations, scale back prices, and improve productiveness. It additionally emphasises the significance of embracing sustainable practices, not solely as a regulatory compliance measure but additionally as a strategic transfer to draw new enterprise and clients.  

It additionally encourages SMEs to develop and retain high expertise by way of steady studying and growth alternatives.