New research has revealed that obtaining finance and finding people with the right skills are among the top concerns for start-ups.
A survey by the Institute of Directors (IoD) of 650 entrepreneurs under the age of 35 has revealed that finding skilled employees and accessing scale-up finance are the most important issues for start-ups.
The study showed that 42 per cent of entrepreneurs had trouble hiring people with the right skills, while 39 per had difficulty accessing finance.
It also found that 53 per cent used money from family members to start their businesses, while 45 per cent had used money from their friends.
A further 56 per cent of entrepreneurs had used personal unsecured finance such as credit cards.
Jimmy McLoughlin, Deputy Head of Policy at the IoD, said: “Finding people with the right skills, and tapping into the right mix of finance will be the biggest factors in achieving scale-up success. For start-ups, overcoming these obstacles can be the difference between success and failure.
“It is a worry, therefore, that so many start-ups struggle to hire skilled employees. The push to teach children digital skills, like programming, at school is part of the long-term solution, but we must remember that start-ups face skills shortages now.”
Smailes Goldie Group
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