Over 80% of small-to-medium enterprises (SMEs) have been identified with skills shortages in project management and are facing calls to help tackle a lack of investment in training and upskilling, following a survey.*

500 project professionals working for SMEs across the UK were polled and 83% agreed their employer needs to improve project skills across the workforce.

The skills gap also featured prominently when respondents ranked the biggest challenges facing overall project growth across the SME sector. ‘Accessing enough people with the right project-related skills’ (33%) was second behind ‘inadequate technology infrastructure’ (35%). A lack of ‘investment in training/professional development’ and ‘understanding among employers or team leaders of future project skills needs’ (both 31%) were joint third.

Soft skills also emerged as the most important skill for project delivery. Team management (selected by 17% of respondents) was ranked first with leadership (15%), communication and interpersonal skills (15%) and adaptability / flexibility (14%) also in the top five.

However, 70% said their employer ‘places value on training and developing or upskilling for project professionals’ while 88% said there is enough time and resources currently available at their SME to dedicate to project management training and development.

Professor Adam Boddison OBE, Chief Executive of APM, said: “Our survey sheds vital light on the critical need for SMEs to prioritise investment in project management. While it is encouraging that most employers appear to realise the unique value of project professionals, it is concerning that 83% of respondents believe their SME needs to improve project skills at such a critical time with net zero, technology and global events disrupting business activity.

“SMEs are the engine of UK growth with over 5.7 million driving innovation and productivity. But at the forefront of delivering growth and change for our economy and society are project professionals who need the right skills to provide solutions for tough challenges in real time.

“As SMEs navigate an increasingly dynamic business landscape, the need to manage projects effectively becomes ever more paramount for sustained growth and success. By taking action now to invest in project skills, SMEs can streamline effectively their operations and help ensure projects are delivered to budget, timescales and quality.

Meanwhile in the survey carried out by national research company Censuswide, when respondents were asked for the best ways for SMEs to improve project skills, training and upskilling existing employees (46%) ranked first. This was followed closely by a greater awareness of project management as a profession (45%), recruiting more widely across different professions (45%), and through apprenticeships (36%).

Tony Mulvahill, a consultant, coach, trainer and educator for project managers, who participated in APM’s The Golden Thread: Project Management in SMEs report, said:

“A lot of people in the SME sector engaged in project work do not hold a ‘project professional’ job title but instead tend to be sales managers, marketers, production managers, directors or engineers. Although these ‘accidental’ project managers know their industry well and are organised, there are areas in which they can benefit from a more professional approach to project processes and techniques.

“SMEs often need support with risk management, change management and time management. Ongoing renewal of learning is critical to success and to support evolving education requirements, but it can be a challenge for SMEs because the sector needs to be able to give people the time needed to keep their skills up to date.”

The skills gap is defined as the disparity between skills employers need or find desirable and the skills current or future employees possess to meet job role demands. The term dates to the 1990s but long-standing concerns and challenges over the skills gap remain across all sectors, exacerbated by globalisation, technology and the need for more specialised skills.

*The survey follows APM’s recent Golden Thread Report 2024, conducted by PwC Research, which found project management in the UK contributes £186.8 billion of annual gross value added (GVA) to the UK economy – a growth of over £30bn in the last five years.