SANTA CLARA, Calif. and LONDON, April 23, 2013 /PRNewswire/ -- Eighty seven percent of technology startups plan to hire new employees in 2013, according to an interactive report by Silicon Valley Bank, financial partner to technology, life science and cleantech companies and their investors worldwide. In the US, this is up 14% from four years ago when the annual survey began. SVB's Startup Outlook study, conducted in the US and the UK, also reveals that software companies plan to do the most hiring, with 90% planning to increase the size of their workforces this year.
The Startup Outlook report is based on a survey of more than 750 startup executives across the US and 125 in the UK.
The interactive report details the technology sectors and geographies in the US and the UK that are looking for employees with both STEM (science, technology, engineering, math) and general business skills. Job seekers will find locations with the greatest need and job types in particularly high demand. Eighty-two percent of startups in the US, and 77% in the UK, said that they are looking for people with STEM skills.
"Tech companies are a bright spot in the economy worldwide, which is evident from the significant number of startups in the US and the UK that expect to grow and hire this year," said Greg Becker, president and CEO of Silicon Valley Bank. "There is a lot of opportunity to put people to work at startups, which is particularly welcome news since jobs in general are recovering slowly. Investments in STEM education and policies that support tech businesses will help people take advantage of jobs, and benefit economic growth overall."
Yet nine in 10 reported difficulty finding workers with the skills they need. For more detail on the hiring challenges startups face, visit Startup Outlook: The Issue of Talent. In the US, startups in major technology hubs nationwide reported challenges finding workers with the skills they need and those numbers were highest in Texas (94%), followed by Washington (91%). In the UK, 69% of startups reported trouble finding qualified engineers.
Silicon Valley Bank conducted its fourth annual Startup Outlook survey in the US and its first survey in the UK in December 2012. For the purposes of this study, startups are primarily defined as companies in the innovation sector with less than $100 million in annual revenue and fewer than 500 employees (US) or less than £25 million in annual revenue and fewer than 100 employees (UK). Just over 40% of the startups that are hiring in both the US and the UK had fewer than 10 employees at the time of the survey.
Results of the survey are being released in a series of reports, which are available at http://www.svb.com/startup-outlook-report/ or www.svb.com/uk . Follow the conversation on Twitter at @SVB_Financial and @SVB_UK #StartupOutlook.
About Silicon Valley Bank
Silicon Valley Bank is the premier bank for technology, life science, cleantech, venture capital, private equity and premium wine businesses. SVB provides industry knowledge and connections, financing, treasury management, corporate investment and international banking services to its clients worldwide through 28 U.S. offices and six international operations. (Nasdaq: SIVB) www.svb.com.
Silicon Valley Bank is registered in England and Wales at 41 Lothbury, London, EC2R 7HF, UK under No. FC029579. Silicon Valley Bank is authorised and regulated by the Financial Services Authority, FSA reference number 577295. Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. SVB Financial Group is also a member of the Federal Reserve System.
SOURCE Silicon Valley Bank