DYLAN JONES-EVANS
Global Entrepreneurship Monitor (GEM) study, Wales has a lower level of entrepreneurial intention than the rest of the UK, with only 9% of the Welsh adult population who are non-entrepreneurial expecting to start a business in the next three years as compared to 11% for the UK. In addition, only 30% of the adult population believe there will be new start-up opportunities in the next six months as compared to 38% for the UK.
Given this, it is not surprising that Wales has seen a lower growth than the rest of the UK in terms of new businesses.
According to official statistics, Wales – with 12,115 start-ups – accounted for less than 3% of all new firms in the UK in 2016. And if we examine the growth in the number of start-ups over the past decade, Wales has gone up by 22% during 2007-16 as compared to 48% for the UK. Only four counties, Merthyr Tydfil (113%) Rhondda Cynon Taff (112%), Cardiff (64%) and Newport (56%), have demonstrated a higher growth rate over this period. In fact, what is troubling is that six counties in rural wales – Anglesey, Gwynedd, Ceredigion, Powys, Conwy and Pembrokeshire – have seen a decline in the annual number of new businesses started very year.
Of course, it is not all bad news – Wales has a higher proportion of new businesses from the university sector, with 308 graduate startups in 2015-16 out of a total of 3,890 in the UK, well above what would be expected for our population.
However, this means that only 0.3% of the Welsh student population is involved in starting a new venture. If this could be increased to 1% every year, this would create an additional 1,000 new firms every year, giving the overall economy a higher start-up growth rate than the UK as a whole.
And while we have 9% of the UK total of university spinouts – ie those businesses commercialising knowledge from our higher education sector – these remain small and the 140 still active employ only 755 people, have an estimated turnover of £44m and have attracted an estimated external investment of £9.4m.
Therefore, these statistics show there is still a considerable challenge in raising levels of entrepreneurship in the Welsh economy and supporting those new businesses that create employment and prosperity across the nation.
However, as the Wales Start-Up Awards have shown over the past two years, we have many excellent businesses that are being created and grown by inspiring entrepreneurs that are making a difference both within their local communities and wider afield.
By highlighting their success, building on their entrepreneurial examples and creating the right environment in which they can thrive, I am confident we can not only match the UK’s success in developing new businesses but surpass it over the next decade.