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A Factsheet from

By Liz Barclay

Surveys asking small business owners what they’re most concerned about have consistently been topped by “Finding the right people” for the last couple of years.

Whether you run a care agency, plumbing business, local bakery or construction firm, skilled workers may be in short supply in your area. Immigration rules and underfunded skills building programmes have made the problem worse in many sectors.

The government wants to “build a high-wage, high-skill economy”. The discussion centres around upskilling UK workers and reducing dependence on immigration. That’s a credible long term aspiration but not an answer in the short term for micro and small businesses facing a staffing crisis now.

Small, independent care providers offer flexible, localised services tailored to their communities. But many rely on overseas workers because they simply can’t find enough trained, local staff willing or able to do the job. Under the new immigration framework, salary thresholds are rising, and visa routes are tightening so some of those vital workers are no longer eligible. Rotas can’t be filled, owners burn out trying to cover shifts themselves and local families can’t find care for their loved ones. 

The same story is playing out in hospitality, logistics, construction, and even the digital sector. Small firms don’t have big recruitment budgets. They can’t compete with bigger employers for skills or offer golden handshakes and relocation packages. They rely on local word-of-mouth, trust, and loyalty.

Investing in skills is essential. We need more apprenticeships, better vocational training, and career routes that offer real progression. But small employers need to be included in those plans and conversations. Apprenticeship funding is complex to access. Training providers prioritise large contracts. And schemes aren’t always flexible enough to work for a three-person business that needs someone who can hit the ground running.

We need to hear from small business owners about the reality and the consequences of existing policies. Not every role can be filled locally. Not every vacancy can wait for a training programme to catch up. And not every business can absorb the costs of slower, more restrictive immigration processes.

Small businesses need:
• A more flexible visa system for critical sectors, especially where shortages are well documented
• Access to funded, part-time training schemes that don’t require a full HR team to navigate
• Micro-employer support to help guide small firms through apprenticeships and skills grants
• Bridging schemes where overseas workers fill gaps while domestic training ramps up.

The long-term vision is welcome but we need a transition plan that keeps the economy ticking over while that vision is realised. 

Small businesses don’t care where a good worker comes from. They care that the job gets done, the customer is happy, and the business survives. They want to train people and invest. But they also need urgent support to stop vacancies becoming crises.

If we’re going to build a stronger economy we need skilled, committed, and available people to do the job and deliver. We need to build the new operating model before we scrap the old one.