A new study reveals that 40% of small and medium-sized enterprises (SMEs) in the Czech Republic have lost contracts because they couldn’t meet client demands due to a lack of qualified staff.
This issue is particularly pronounced in medium and large businesses. The findings come from the Business Expectations Index, a study conducted by Datank for the ČSOB banking group in March, which surveyed 401 SMEs and entrepreneurs across the country.
While 26.8% of businesses and self-employed individuals with an annual turnover of up to CZK 3 million reported declining contracts due to staffing shortages, nearly half of companies with a turnover exceeding CZK 40 million experienced the same issue, according to data shared with ČTK by ČSOB.
“These are mostly orders from new clients. Due to a lack of skilled labor, we’re forced to offer longer delivery times or higher prices, which also reflects the need to subcontract missing capacity,” said Michal Bakajsa, co-owner of Czech engineering group SkyLimit. He explained that the volume of orders and the corresponding demand for production capacity fluctuate throughout the year.
The study also highlighted the following employee-related challenges as the most pressing concerns for businesses and entrepreneurs:
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Lack of qualifications – 26.5%
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Poor work ethic – 22.5%
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Too few applicants for open positions – 20.2%
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Low salary expectations – 19.7%
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Poor work habits – 18.2%
“There are no workers, and the general morale of people keeps getting worse. It’s very hard to find honest, hardworking people,” said Jan Huber, owner of Huber DC, a company specializing in industrial and technological development.
