Big Tech is Stealing Your Blockchain Dreams: How SMBs Can Fight Back

The demand for blockchain engineers has surged significantly over the past few years. Despite efforts to bridge the gap between industry and academia, meeting the ever-rising industry demand for blockchain development has been challenging. 

Who will fuel the relentless advancement of technology? If academia can keep pace with industry demands, the educational sector and businesses can stay caught up.

The high demand for blockchain developers outpaces the current talent pool, creating a significant skills gap. This especially challenges  SMBs. Industry giants like JP Morgan have the resources to attract top talent with lucrative salaries. SMBs, however, need help to compete, hindering their ability to innovate and capitalize on blockchain's potential. 

This article will explore the causes of this skill deficit and offer potential solutions for SMBs.

Why does the Blockchain Skills Shortage Exist?

New protocols, languages, and platforms require constant learning, making it challenging to keep learning new technologies quickly. One way to do this is to be highly niche-specific. For example, the demand for expertise in specific blockchains (Ethereum, Hyperledger, etc.) makes pursuing one thing while learning relatively easy. However, the real problem is high demand across industries—competition from tech giants and finance firms crushes the hopes of SMBs trying to make their mark.

As more and more industries get hooked on blockchain, they're all scrambling for the people who can build and manage it. 

SMBs Feel the Pinch

The blockchain skills shortage affects SMBs on many levels, including:

Smaller and medium-sized businesses (SMBs) often need help in competing with larger enterprises when it comes to attracting top talent due to limitations in offering competitive salaries and benefits. This can result in talented individuals being drawn to larger companies that can provide more lucrative compensation packages.

SMBs often need more resources to recruit and onboard new talent. To effectively address these needs, they may require additional dedicated HR teams or increased talent acquisition budgets.

When a company lacks internal expertise in blockchain development, projects can be delayed or even halted completely. Insufficient in-house resources can cause projects to fall behind schedule or, in some cases, be abandoned altogether.

Finding Blockchain Developers: A Playbook for SMBs

SMBs in the Blockchain and Crypto niche can take the following steps to bridge the talent gap:

• Outsource: Partnering with credible blockchain development agencies can be cost-effective for small and medium businesses. However, you need thorough due diligence to ensure that your desired agency possesses the necessary expertise and aligns with the company's goals.

• Upskill existing employees: Invest in training and mentorship programs for your current staff. It will expand their skill sets and create valuable in-house blockchain expertise. A dedicated team, in-house or remote, can be your secret weapon in keeping up with the industry. 

• Collaborate with universities: Partnering with universities offers SMBs access to a pipeline of early talent through internships and research projects. Outreaching universities can be time-consuming and requires networking, but it's worth the effort.

• Establish flexibility and a strong company culture: You can differentiate your company from giant corporations by offering remote work options, flexible schedules, and a compelling company mission. Developers highly seek these values.

Hurdles in Bridging the Gap and How to Overcome Them 

• Finding Reliable Agencies: The blockchain development niche is filled with less-than-reputable providers. You must carefully vet agencies and check for references, a proven track record, and expertise relevant to your project.

• Tip: You may ask potential agencies for client case studies that directly mirror the complexities and technologies relevant to your project.

• Problems in Control and Communication: Outsourcing development can feel like you're losing control. You can counter this by establishing clear communication channels (Slack, Skype, G-Suite, and Microsoft Teams can be handy), regular project updates (Trello, Jira, or, if it's a small project, a simple spreadsheet can do the trick), and well-defined roles and responsibilities with the agency.

• Intellectual Property Risks: Small businesses usually worry about protecting their ideas and code when working with external developers. Solid agreements protecting IP ownership, confidentiality clauses, and the use of non-disclosure agreements (NDAs) are life savers.

• Hidden Costs: Unanticipated expenses can mushroom in outsourced projects. It would be best if you're meticulous in reviewing contracts, outlining project scope, and having transparent, frequent talks about potential additional costs.

• Integrating Blockchain: Integrating outsourced blockchain solutions into your existing systems can be arduous. You must work closely with your agency on a seamless integration plan that includes thorough testing and explicit API interactions.

Bonus Tips

• Become an Employer of Choice: Don't just offer a job, offer a mission. Take a page out of Simon Sinek’s book, Start with Why. Highlight how your company's blockchain projects are contributing positively to an industry or cause that aligns with the values of the developers you’d like to work with.

• Emphasize Learning & Growth: Blockchain is cutting-edge (yes it still is when it comes to integration and utility). Showcase your commitment to providing resources (training budgets, conference attendance) that will enable developers to stay on the forefront of this rapidly evolving technology.

• The Remote Work Advantage: Casting a wider net geographically can dramatically expand your candidate pool. Position your openness to remote work (or even a hybrid model) as a major perk. You can put up your job post ad in several remote job sites.

• Champion Your Advantages: SMBs can often pivot faster than large corporations. Your agility is your strength. Emphasize the potential for developers to have greater ownership over projects, see their contributions implemented quickly, and gain a wider breadth of experience.

• Leverage University Partnerships Early: Don't wait for students to graduate. Target promising individuals for part-time work or structured summer projects. This provides a valuable "try before you buy" model while building your reputation on campus.

Conclusion

The limited pool of blockchain developers creates considerable challenges for SMBs, potentially impeding their growth and innovation. While there's no "magic bullet," the above techniques offer promising ways to overpower the talent shortage. Be proactive and think outside the box. It's necessary to find solutions to your specific needs. Invest in acquiring talent, and you will position your business well for the future.