Why a new tech skills drive is sorely needed for the UK's tech startup ecosystem
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur United Kingdom, an international franchise of Entrepreneur Media.
It promises that 'pupils across the country will be given the skills and tools needed to get the AI-powered jobs of the future'. This is a much-needed initiative that will benefit individuals, businesses and the UK economy.
Digital skills gap
The 'digital skills gap' is costing the UK around £63bn annually. This is the mismatch between the digital capabilities employers need and the skills available in the workforce. With growing demand for tech talent, especially in areas like AI, data science, and cybersecurity, the supply of qualified candidates has not kept pace. 75% of tech firms are struggling to recruit, and of course it's not just tech companies that need tech skills!
Tech talent and growth
The digital skills gap isn't just a recruitment issue - it's a growth inhibitor. When one in three UK tech founders cite talent shortages as their biggest challenge, it reveals a systemic drag on innovation, product development, and market expansion. While the AI sector races ahead, startups without access to skilled talent risk being left behind, especially those based outside London. Closing the skills gap means more than filling vacancies; it's about unlocking capacity, speeding up time to market, and enabling the next wave of high growth-potential companies to scale with confidence.
Access to tech skills
The TechFirst programme should be of particular interest to startups. Startups often can't compete with big tech salaries. So, a steady stream of skilled young talent will reduce recruitment and training costs and will help startups grow sustainably. Young people are looking for purpose-driven roles, where they can quickly see the impact of the work they do. Many startups provide this environment, often with the opportunity to contribute to different areas and develop a broad skill set.
The reality of tech roles
Most people who work in tech do not write code. This fact seems to be a tightly kept secret to everyone outside the tech sector. Initiatives aimed at getting more people to consider a career in tech are often focused on coding – such as coding clubs and boot camps. There is very little emphasis on the wide range of roles that require curiosity, collaboration and creativity, and absolutely zero coding ability.
Hopefully the TechFirst programme will consider the full range of tech roles, and the skills needed to be successful in them. Startups need team players, people who are flexible and adaptable and can learn new skills as their role and the organisation evolves.
Routes into tech
Only about 10% of the UK workforce has a computer science or IT related degree (Data from BCS and Coding Black Females). This typically comes as a surprise to students, teachers and careers advisors who believe this is the main route into tech. Tech professionals have a variety of educational backgrounds, including STEM, humanities and arts degrees, and many have followed non-university paths into tech, including apprenticeships and entry level roles.
Digital apprenticeships
Start-ups often struggle to make the 12- or 18-month commitment required to take on a digital apprentice. This is a missed opportunity, for the startup and the apprentice. Apprenticeships are a budget-friendly way to scale. Government funding and incentives help cover training costs, and selecting the right person and the right apprenticeship programme can benefit the whole organisation.
The tech sector gets less diverse as we look at more senior positions in the hierarchies. By creating opportunities for early-career professionals, such as apprenticeships and other types of entry role, it is much easier to start to turn the dial on diversity. A diverse workforce can be a strategic asset for startups. Diverse teams are far more likely to make better decisions, and Innovate UK found that 73% of startups believe that diversity improves innovation. According to Shaw Trust, companies with above-average diversity generate 45% of their revenue from innovation, compared to just 26% for those with below-average diversity. That's a huge edge for startups trying to disrupt markets.
What will 'AI skills' look like in 5 years?
Given the rapid evolution and advancement of generative and agentic AI, it is very difficult to predict exactly what skills humans will need to work with and develop AI tools. One thing is clear: that a growth mindset and a commitment to life-long learning is what keeps tech professionals in jobs. Fostering this approach in the next generation of tech professionals is absolutely vital, because while tools and 'tech skills' may change, the ability to learn, adapt and grow will always be the most future-proofed skill we can pass on.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
7 minutes ago
- Yahoo
Marshall Monteagle Full Year 2025 Earnings: EPS: US$0.017 (vs US$0.10 in FY 2024)
Revenue: US$85.2m (up 2.6% from FY 2024). Net income: US$615.0k (down 83% from FY 2024). Profit margin: 0.7% (down from 4.4% in FY 2024). The decrease in margin was driven by higher expenses. EPS: US$0.017 (down from US$0.10 in FY 2024). AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. All figures shown in the chart above are for the trailing 12 month (TTM) period Marshall Monteagle's share price is broadly unchanged from a week ago. Before we wrap up, we've discovered 2 warning signs for Marshall Monteagle that you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
8 minutes ago
- Yahoo
£10k to invest? 3 investment trusts to target a £1,410 second income this year
Dividends can never be guaranteed, and especially during economic downturns. UK shares are typically known as good shares to buy for investors targeting a second income. But British companies aren't immune to the profits problems that can impact shareholder payouts. Purchasing dividend-focused investment trusts can be a great way to reduce (if not completely eliminate) these threats. These financial vehicles often hold stakes in a variety of companies. So problems felt by a handful of companies doesn't necessarily mean that investors' dividend income collapses. With this in mind, here are three top trusts I think could be great sources of long-term passive income. If broker forecasts are correct, a £15,000 lump sum spread equally among them will yield a £1,410 second income this year alone. Economic bumpiness in China has been a problem for Henderson Far East Income (LSE:HFEL) recently. Trouble in its core market (and contagion to nearby economies) has caused its share price to drop. This has, in turn, supercharged its dividend yield. While risks remain, I think this emerging market trust could deliver great long-term returns. I certainly expect it to continue raising dividends for the foreseeable future (annual rewards have risen every year since 2008). This Henderson trust holds stakes in around 70 companies. These range across sectors and include Alibaba, Taiwan Semiconductor Manufacturing Co and China CITIC Bank. I think it's worth considering as way to capitalise on soaring Asian wealth and population levels. As its name implies, the Chelverton UK Dividend Trust (LSE:SDV) is focused on generating returns from London-listed shares. This leaves it more vulnerable to nation-specific risks than continental or investment trusts. But with more than 60 holdings, and a focus on mid-to-small-cap companies, it still offers a diversified approach that can provide long-term payout growth. Dividends here have risen consistently for the past 14 years. Like Henderson Far East Income, Chelverton's capital is spread across a wide spectrum of sectors. Industrial goods and services, financial services, and construction are especially well represented through shares like Smiths News, Duke Royalty, and Severfield. Small-cap shares like this can be more volatile than blue-chip stocks, which is a risk to consider. However, they can also have superior growth potential over time. As a real estate investment trust (REIT), this particular vehicle's set up in a way that prioritises dividends income. Sector rules mean that 90% of rental earnings must be paid out each year. This doesn't always guarantee a reliable passive income. But Social Housing REIT (LSE:SOHO) focuses on the stable supported housing sector, which provides a cushion of safety. Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Unlike those other two trusts, this one doesn't invest in equities. Instead, it holds a portfolio of almost 500 residential properties comprising around 3,500 homes. This helps protect group earnings from problems (such as rent collection or cost issues) at one or two locations. Despite interest rate risks, I think this property trust is worth serious consideration for dividends. The post £10k to invest? 3 investment trusts to target a £1,410 second income this year appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Taiwan Semiconductor Manufacturing. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13 minutes ago
- Yahoo
Long-awaited retail park cafe has arrived but was it worth the wait
It's been quite a wait for coffee fans. Signs have been suggesting Black Sheep Coffee were opening a cafe at Broughton shopping centre for some two years. But on Thursday the chain - with branches around the UK - finally flung open their doors. Judging by the response so far it's clear that it's set to be a success. Franchise owners - and husband and wife team - Haris Mirza and Saba Jamshed will run the cafe - in addition to one they operate in Preston. Hari, 41, told me their Preston one took a year to be as popular as this Flintshire one is now so the future looks positive. The North Wales Live Whatsapp community for top stories and breaking news is live now - here's how to sign up READ MORE: 'Superb in every way' North Wales village named 'best' UK coastal destination READ MORE: Popular restaurant in North Wales village expands with new Airbnb Haris said what makes Black Sheep Coffee is different is its Robusta coffee naturally contains twice as much caffeine as normal Arabica coffee beans but in a good way. It's less acidic and it's more chocolatey and nutty so it's got the right notes. "It's what drove me to open this cafe," he says. "I was literally just a customer like anyone else. I would just go and buy a regular mocha and then I just ended up taking on the franchise. "The Robusta coffee beans come from India and the equivalent of the Arabica beans - which is the Blue Volcano which is fruitier - come from Colombia. There are other coffees as well. "There are so many options to customise - different syrups like hazelnut. caramel....., and whipped cream." Haris says it's a friendly place where staff including him and his wife chat to customers. Customers order at the front, pay at the next counter and collect at the far end. The orders are made on one of three touch screens, much like in McDonald's or M&S cafes. There are lots of bagels, sandwiches and croissants and the like. The meal deals looked good. I went for a Chicken & chorizo farmhouse sandwich, flapjack (in a plastic wrapping) and cappuccino. The drink is from their "Blue Volcano" range and I went for added caramel. It's quite strong and rich and exactly what it's difficult to make at home. There were many Matcha drinks too. Matcha means finely-ground powder of green tea which can be added to milk, water or another drink. While here I had one with lemonade. It tastes rather like Lilt or 7UP, from back in the day, without the fizziness. And while it looks somewhat unappetising it tastes sweetish and light, and with some ice, it was a refreshing pick me up on a warm and muggy day. The Chicken & chorizo sandwich was on fresh bread and with a cottage cheese filling. That made it lovely and moist and it was delicious. I would have preferred the flapjack not to be in wrapping and to be a bigger square on a plate from the counter. But it was soft and fruity and a lovely snack. The decor was unpretentious, like the Black Sheep Coffee cafe I'd been to in Cardiff. This one has exposed, ventilation ducts, faux distressed plank flooring, breeze blocks and corrugated metal on one wall. They give it an industrial look. The grey artwork personalises this branch. Striking images of two racehorses presumably hurtling around the Roodee circuit (Chester Racecourse) and Roman Chester city walls are a nice choice. It's the first Black Sheep Coffee branch in North Wales - between Clogau and Lush at Broughton retail park. And with a relatively captive audience it should do well. Location: Black Sheep Coffee, Broughton retail park, Flintshire CH4 0DE. Food: Tasty and fresh with imaginative coffees, shots and Matcha teas. Service: Friendly and efficient Atmosphere: Unfussy and relaxed. The bill: Chicken & chorizo farmhouse sandwich, cappuccino with caramel shot and fruit and seed flapjack: £9.38. Verdict: A little piece of cosmopolitan life from a household chain now in North Wales too.
