New research from the Cardiff Chamber of Commerce has revealed that many Welsh SMEs experience difficulties in recruiting suitable staff.
The balance of companies experiencing difficulties in recruiting rose to 88 per cent, a record high level, in the first quarter of 2007.
The phenomenon means that SMEs are forced to expend significant amounts of time and money in training new staff that do not possess the required skills.
Claire Saralis, head of the chamber's policy unit, said: "Businesses in Wales - as they do across the UK - consistently complain about the substantial difficulties they face in recruiting people with the aptitudes necessary to allow them to make a positive contribution in the workplace without the need for significant additional training in key and basic skills."
The Federation of Small Businesses says that SMEs make up a staggering 99 per cent of all businesses in Wales.
