What action is the Minister taking to increase the number of medium-sized businesses in Wales?
Through Business Wales, the Welsh Government is actively focused on engaging and supporting our existing medium sized firms, particularly those that are grounded in their local communities and are invested in Wales for the long-term. A key aim of the Business Wales service is to help to create the conditions for businesses to start, sustain and grow with a focus on mid sized companies.
Business Wales helps SMEs in Wales to expand, build more resilient businesses and develop their business practices. The service aims to improve productivity and stimulate business growth in an inclusive and sustainable way, through improved investment, export and the creation of good quality employment. Business Wales provides access to a wide range of information, advice and support to help businesses grow and prosper, support includes general business advice; equality & diversity; resource efficiency; international trade; skills; procurement; mentoring and digital exploitation.
The Business Wales Accelerated Growth Programme is working to increase the volume and pace of progression in order to raise the number of active firms Wales has in the medium sized 50-249 employee segment. An independent impact study showed for every £1 we are investing in the Business Wales Accelerated Growth Programme, it helps generate a net GVA up-lift of £18 through the high quality jobs that supported companies create in the Welsh economy.
The Business Wales Accelerated Growth programme provides specialist tailored support for businesses with the potential to realise significant growth potential. High growth support is delivered by highly skilled coaches and mentors and is supported with a suite of dynamic online high growth tools. Support is also provided for high-growth businesses to ensure they take positive action through the Welsh Government’s Economic Contract across economic resilience, low carbon, fair work and wellbeing.
We continue to engage with international businesses and partners across the world to sell the many benefits of investing in Wales. As well as working through our own teams in Wales and overseas, we continue to work closely with the Department for Business and Trade to ensure that UK Government works for Wales, Welsh strengths are understood across its global footprint and that propositions are put forward to investors where a Welsh location can add value.
Specialist Business Wales Tendering Advisers also work with businesses to help them grow by become ‘fit for tender’ to improve their chances of winning public and private sector contracts, sub-contracting work on larger public-sector projects and securing places on public sector frameworks.
In addition, Business Wales supports businesses to access finance, help ensure they are lending ready and provides impartial advice on a range of financial support available and links to the Development Bank of Wales. The Development Bank of Wales helps Welsh businesses get the finance they need to strengthen and grow and provides loans from £1k to £10m as well as mezzanine, and equity funding. They also help businesses find the right finance partner to leverage in private finance with its own gap finance when necessary.
The Welsh Government is aware that succession planning is key and the importance of access to ‘patient capital’ in that regard. There are opportunities for cooperatives especially through the succession route of Welsh businesses, to keep these businesses based and owned by people in Wales. The Development Bank of Wales’ Wales Management Succession Fund helps prevent the sale of businesses that might end up being divested or re-located outside of Wales The fund provides ambitious managers and management teams with the funding they need to buy established Welsh SMEs when their current owners retire or sell up.
Business Wales and Social Business Wales service also offers specialist advice to support employee buy outs, with fully funded and bespoke help available to help business owners decide if employee ownership and share schemes are the right solution for their business.