With the amount of European venture capital raised by firms reaching over ?2bn in Q2 of 2015 ? double the amount from the year before ? it is clear that private equity (PE) and venture capital (VC) is a popular growth method for businesses at seed or second stage. With more businesses being launched in the UK every year, and with potential investment opportunities at risk, it is vital that firms address any skills shortages, in those acquired firms, to maximise their chances of success and avoid wasted investment. Recent research canvassing the opinions of UK PE firms, by ThoughtSpark, has revealed IT management and Marketing as the two major skills gap in UK backed firms; both of which are fundamental to business growth. Business growth has been a hot topic recently and last year accountancy firm EY highlighted skills shortages as a major concern for business expansion, labelling it as a ?ticking time bomb for the UK economy?. With the economy slowly improving, it is therefore vital that SME growth doesn?t get stopped in its tracks and continues to attract investment. With bank credit becoming less available over the last few years, PE and VC is on the rise. Firms that can demonstrate strong skills in all fundamental business areas needed for growth will present themselves as a far more attractive entity to possible investors. The research We asked UK PE houses with assets under management of over ?2bn to rate core skills in companies they fund on a scale of 1-100 per cent, where 100 per cent is the optimum level of competency. IT management was rated at just 48 per cent, whilst Marketing was judged at just 44 per cent. In contrast, stronger skills included new product development (71 per cent) and sales (69 per cent). Financial and business management, HR, and service distribution skills all achieved moderate scores above the critical 50 per cent watershed. Regardless of the industry, buoyant business growth requires strong skills across all core areas (sales, IT, financial management, marketing/PR, product development, HR) to ensure fully functional operations and to de-risk development potential. Any weaknesses will undermine potential growth and may hinder a business?s chances of getting investment in an increasingly competitive market. Importance of Marketing and IT Weaknesses in IT management skills in a particularly worrying skills gap, with modern day businesses reliant on their IT capabilities for operational efficiency, customer data management and intelligent sales activity. In a world where automation and an online presence becomes more and more the norm, ensuring IT capabilities are strong will put businesses in good stead for business development. Poor Marketing skills mean that business development funds may be misapplied so that an effective pipeline of sales leads is not generated, and market awareness fails to be built. In short, sub-par IT and Marketing skills significantly reduce a businesses? ability to go to market, target the right audience with the most effective messages and generate effective sales growth. Misdirected marketing effort and spend is tantamount to flushing money down the drain. Continue reading on page two…
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.