Productivity and business development being curtailed due to skill gaps
A new report released this week by MentorsWork, an initiative from Skillnet Ireland and the Small Firms Association (SFA), reveals that productivity and business development is being curtailed across many SMEs due to emerging skill gaps.
The report highlights that many SMEs are struggling to access finance and financial supports.
According to Sven Spollen-Behrens, Director of the Small Firms Association (SFA), “it is critical that owner-managers of small businesses have up-to-date organisational and financial skills, including financial literacy, financial analysis skills and understanding risk, in order to implement the necessary changes to adapt to an ever-evolving business landscape”.
Spollen-Behrens adds that while innovation and technological advances are critical in delivering increased productivity, SMEs crucially must have robust financial planning.
MentorsWork helps boost SME productivity through mentoring
MentorsWork, an award-winning joint initiative from Skillnet Ireland and the?SFA, is designed for business owners and managers throughout Ireland, to help boost SME productivity by providing mentoring and business development tools.
The report reveals several predictors of financial competency, with higher employee numbers and older businesses (10+ years) more positively correlated with stronger financial literacy skills and higher capacity to execute effective strategic planning.
Younger SMEs (10 years or less), score lower than older counterparts in measuring financial literacy, financial analysis and understanding risk. In addition, these businesses have more difficulty with routes to accessing financing and financial supports, as do businesses with 9 employees or fewer.
ICT and services are the sectors particularly challenged when it comes to financing needs, and the services industry is associated with lower levels of financial literacy in the report.
By sector, retail and hospitality, food and drink, and manufacturing report above average competency around financial planning. SMEs involved in ICT are average, while services and all others rated below average.
Manufacturing, ICT, retail, hospitality and food and drink performed best when it came to assessing finances and risk.
Marks for marketing
Competency in business marketing is highest in the retail and hospitality and food and drink sectors, and for larger companies too. Younger companies (0-10 years) rate their marketing competency higher than more established businesses.
Older and larger businesses rate their competence in winning and competing for new business more highly, with retail and hospitality out-pacing services, manufacturing and ICT businesses.
The motivation for growth in the retail and hospitality industry is lower than average, however, it seems. The same is true for younger and smaller businesses.
Strategic focus with independent mentors
Businesses more than 21 years old and those with 10 employees or more are associated with higher strategic planning scores. The manufacturing, food and drink, and ICT sectors are rated more highly than average for strategic planning.
A strategy focus is something significant that an independent mentor can bring to a business Spollen-Behrens added, “Small business owners are pulled in all directions, and will often manage day-to-day operations and sales and marketing too, to keep business ticking over. Where MentorsWork helps is in directing attention to future business planning, such as what does expansion look like, how will it be funded, and where will it come from?”
Impressive success for businesses on 12-week programme
According to Mark Jordan, Chief Strategy Officer at Skillnet Ireland, the success rate of businesses completing the 12-week MentorsWork programme is impressive to date.
“The mentoring and business planning programme supports SMEs with up to 250 employees from a diverse range of sectors. SMEs play an important role in driving Ireland’s economic revival. The programme helps companies to focus on key talent needs which are essential to shape and deliver on a sustainable business plan,” .
The MentorsWork programme includes an in-depth competency assessment on SMEs main productivity drivers, one of which is finance and growth skills.
Mark Jordan added, “Programmes are developed in response to specific business needs, which we regularly measure and assess. Our latest data from recent MentorsWork participants has helped us refine supports in the areas of finance and business growth for specific types of business.
“For example, the new 2022 MentorsWork programme, launched last month, includes a more intensive programme for faster growing businesses, as well as additional new support in progressing a business plan for former scheme participants.”
1,000 programme places open to SMEs
Launched in 2020, MentorsWork has helped over 1,000 businesses around Ireland. The next round of 1,000 programme places is now open to SME owners and leadership teams across all industry. Any private sector business with up to 250 employees can participate in the 12-week subsidised mentoring programme, addressing core competencies with a one-to-one mentor.
One-to-one mentoring sessions, peer-focused workshops, expert-led masterclasses and an online learning platform are all part of the scheme to support business productivity.
MentorsWork supports businesses in sectors including services and manufacturing for domestic and international markets. Lifestyle, hair and beauty, childcare, technology, retail, marketing services, and recruitment are largely represented in the 12-week programme too.
Learn more about MentorsWork and the programme places on offer at www.mentorswork.ie
Read the full report here.
https://www.skillnetireland.ie/finance-and-growth-skills-gaps-for-smes-identified-in-mentorswork-report/
08/06/2022