Call for creation of development agency in Wales

THE Welsh Government is being called upon to help businesses expand into new markets by creating an arm’slength development agency.

The Federation of Small Businesses (FSB) in Wales has argued that after the Covid-19 crisis, and with a changing international environment post-Brexit, Welsh firms will need the support of a Welsh Government with a clear vision for exploiting international markets.

The business organisation says firms must consider how to traverse new terrain on international trade, export and investment, working in partnership with and drawing on the expertise of significant UK Government resource and architecture.

Recent FSB research has shown that 39% of firms are considering expanding into new markets in the next 12 months, while 10% of firms say that international trade is already the most important thing for their business.

Furthermore, 42% of those surveyed stated that Welsh branding on products is important to them. This, the FSB says, demonstrates a need for Wales to both articulate a clear and strong brand, as well as for businesses to feel emboldened to use it in their trading endeavours.

In order to support an increasingly internationally-focused cohort of Welsh firms, FSB Wales has called on the next Welsh Government to create a new arm’slength economic development agency – International Wales. The group says this body should be tasked with delivering a strong international brand for Wales and providing international trade networks, export opportunities and investment within which Welsh firms can prosper. Such an agency should be underpinned by an Economic Development Bill for Wales.

Ben Francis, FSB Wales Policy chair, said: “We want to see the next Welsh Government exploring opportunities for how they can take the next step in championing Welsh businesses on the international stage – and we believe that this is where International Wales steps in.”

FSB Wales has also called for the tourism industry to be provided with long-term support as a strategically-important economic sector, especially given its links with hospitality, food production, farming and other sectors that are vital to Wales.

Mr Francis said: “Wales and Welsh businesses have a brand that we can all be proud of – whether that’s our worldrenowned food and drink industry, innovation in manufacturing and technology or the many other sectors that help project our brand on the international stage. We want the next Welsh Government to immediately take bold action to ensure that opportunities created by the Welsh brand are maximised for every firm in Wales.

“Our tourism industry is also a vital part of how we project our Wales brand to all corners of the world. We all know that tourism has been particularly badly hit by the Covid-19 pandemic and there are concerns that the ramifications of this could be felt for some time to come. We want to see the next Welsh Government taking steps to place the tourism industry on a much more stable footing, and helping our dynamic Welsh tourism firms to make the case for why Wales offers the best in days out and holidays.”

Steve Dimmick, chief operating officer at Doopoll, a Cardiff-based technology firm which exports services around the world, said: “We need more digital companies creating multilingual software solutions that can be sold on a worldwide basis and I’d urge Welsh Government to think about how they can support this from businesses like us.”