Hub closes as EU funds come to end
WREXHAM Enterprise Hub will close its doors after five years of supporting local businesses after EU funding came to an end.
The hub was operated by Town Square Spaces (TownSq) on behalf of Business Wales through the Welsh Government and was backed by the European Union Regional Development Fund.
This funding and contract ended on May 31 and the hub will shut on June 16. Support for physical hubs does not form part of the Business Wales service going forward, but the organisation said advice and support can be accessed through the service for entrepreneurs and businesses based in Wrexham and across Wales.
There are hopes the hub can reopen in the future with Town Sq exploring a number of options.
Welsh Government says the loss of EU funding has meant difficult decisions have had to be taken about what projects can be supported. It has also ended support for other enterprise hubs in Newtown (delivered by Business in Focus), Carmarthen (delivered by Business in Focus at Yr Egin), Anglesey (at M-Sparc) and Caerphilly (delivered by Welsh ICE). The Welsh Government said these hubs have secured alternative funding sources.
The Wrexham hub was officially opened by then economy minister Ken Skates in May 2018, and was the pilot for further enterprise hubs across Wales To date it has supported more than 4,000 participants, enabled over 130 local businesses to start and grow, including LOVE Wrexham, TLC Nursing, and Toddle, which featured as one of the ‘best-ever pitches’ on BBC’s Dragon’s Den.
Chief executive of TownSq, Gareth Jones, said: “When we first launched the Enterprise Hub in 2018 it was with the aim of creating a space that enabled people to start and grow businesses, create jobs and help boost the local economy.
“In 2021 we commissioned a report into the impact of the Enterprise Hub and found that it has made a substantial difference to the area, increasing footfall for local retail businesses, more town-centre-based companies and more engagement with local outlets.
“It has also played a crucial role in new projects to come, such as the exciting Chapter Court which will bring a vibrant retail, food and performance space to the town.
“Whilst we celebrate the achievements of the enterprise hub, we are still exploring how we can continue its momentum and are doing everything we can, engaging with key partners, to try and reopen the hub as soon as possible.
“Spaces such as the hub are crucial to any town centre first regeneration efforts. As countless think tanks and reports have found, placing jobs and people in, not out of, town, helps them to grow. The Enterprise Hub not only gives people an affordable space to work, it also nurtures and supports them to start their own ventures, develop new skillsets and create jobs. We are incredibly proud of the impact we have made to Wrexham and to the lives of thousands of individuals who have passed through our doors through these unparalleled couple of years.”
A Welsh Government spokesperson said: “Enterprise Hubs were directly funded by Welsh Government and EU funds. Following the UK’s exit from the EU, Wales no longer receives new EU funds. As a result of the UK Government’s decision to deny Wales £1.1bn in replacement funding between 2021 and 2025, the Welsh Government has had to take difficult decisions about the allocation of limited resources to best support the Welsh economy. We do not have the level of resources required to replace every penny of EU funding.
“While support for physical hubs do not form part of the Business Wales service going forward, advice and support remains available through the service for entrepreneurs and businesses based in Wrexham and across Wales.”