Recruitment and training top entrepreneurial investment

Nearly a third (31%) of Britain’s entrepreneurial businesses consider lack of talented staff a major barrier to growth over the next 12 months according to the results of Entrepreneurship UK 2008 a report released by Deloitte.

Over a quarter (27%) are therefore prioritising training and recruitment as the focus on their investment plans.

The survey goes on to suggest that entrepreneurs may be dissatisfied with the quality of staff they’ve already employed.  Despite nearly half saying they’d like to promote internally (47%), the reality is that only 27% actually do, with 47% having to use recruitment consultants to fill positions.

Tony Cohen, head of entrepreneurial business at Deloitte, said:

Internal promotion and external recruitment will go hand-in-hand in any business, as the key is finding the right quality talent. However it is particularly critical in growing businesses where a weak or missing skill will be more pronounced.

In terms of the economic outlook, entrepreneurs appear realistic considering they may have to scale back their plans, but remain confident that they can grow their revenues by 30% in the next year.