Why SMEs struggle with skills gaps (and how to fix it)

Small and medium-sized enterprises (SMEs) are the backbone of the UK economy. Innovative, and vital to local people, yet despite their strengths, many SMEs face a persistent challenge that threatens productivity and growth. This challenge is the skills gaps they see (or even don’t see) in their daily operations. 

Essential skills such as digital capabilities, leadership, and customer service, SMEs often lack the in-house talent they need to compete with other local businesses or the wider market. 

The good news? Skills gaps are fixable with the right training. 

In SMEs, every role matters. When one employee lacks essential skills, the impact is felt across the business. This can result in slowing projects, stretching teams, and reducing efficiency. 

Larger companies can redistribute workload or hire temporary cover. SMEs rarely have that luxury. 

Technology, customer expectations, and regulatory requirements evolve quickly. SMEs often focus on immediate operational needs, meaning training and workforce development take a back seat until the gap becomes unavoidable. 

SMEs frequently struggle to compete with the salaries, career progression, and employer branding offered by bigger firms. Even when they identify the skills they need, finding (and keeping) the right people can be a challenge. 

Tight budgets mean SMEs often see training as a “nice to have.” As a result, investment happens reactively when something goes wrong, rather than investing proactively to drive growth. 

Many SMEs don’t have dedicated HR or Learning & Development teams. This makes it harder to identify the root causes of skills gaps, build development pathways, or connect with suitable training providers. A business owner can’t be around all the time, so these key problems do go missed frequently. 

The effects of skills shortages can be detrimental, and show in several ways: 

• Reduced productivity 
• Lower customer satisfaction  
• Increased staff turnover  
• Missed expansion opportunities  
• Greater compliance risks  

When core skills are missing, SMEs truly suffer. Business owners and teams often end up putting out fires. 

The solution isn’t simply to hire more people. For most SMEs, the real power lies in developing the team they already have through nurturing their skillsets to become industry professionals. 

One of the most effective (and cost-efficient) ways to close skills gaps is through Apprenticeships. 

Apprenticeships help to: 

• Provide progression routes for new and existing staff 
• Tailor skillsets to your sector and roles 
• Allow training for your team at a minimal cost 
• Give practical, flexible, and directly relevant training relating to business needs 

Apprenticeships provide structured learning that supports long-term employee development. 

Skills gaps aren’t going away, and with rapid digital transformation and evolving workforce expectations, they cannot be ignored any longer. SMEs that prioritise development now will gain: 

• A more resilient, capable workforce 
• Higher productivity 
• Better employee retention 
• A competitive edge in their sector 

Upskilling is a growth strategy, and Fareport are here to help smaller businesses fill those skills gaps. 

Fareport works with SMEs across the Central South region to close skills gaps through funded, practical apprenticeship programmes. Covering Apprenticeships in Leadership & Management, Marketing, People & Culture, Business & Professional Services, Health & Social Care and Commercial & Supply Chain, our training helps teams build confidence, competence, and long-term capability. 

We encourage you to talk to Fareport to help find where you need to implement training, and with our tailored approach, we will ensure that your business can enrol the employee onto one of our Apprenticeship programmes. 

Complete our form, and our team will contact you to discuss what your upskilling opportunities are.