Written question WQ89300
- Asked by
- Rhys ab OwenIndependent
- To be answered by
- Minister for Economy
- Tabled
- Due
- Answered
- Time to answer
- 9 days
Question
What is the Minister’s response to the Institute For Turnaround’s Societal Impact Report, which has shown that Wales has had the highest increase in distressed companies in the UK?
Answer
Answered by Minister for Economy
The Welsh Government continues to closely monitor a range of official economic and business data to help to assess the status of the economy in Wales during these turbulent times. The most recent (2023) Institute for Turnaround’s (IFT) Societal Impact Report highlights that over half (54%) of the companies IFT are called in to assist are unaware that they are in trouble until it is too late.
We know that business need help and proactively engage through Business Wales to help new entrepreneurs, existing micro-businesses and SMEs to 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. This government is committed to delivering a proactive entrepreneurship and SME business support service and is investing £20.9m per annum in the Business Wales service from April 2023- March 2025, until the next spending review in 2025.
The Development Bank of Wales also offers an equally broad range of innovative and patient funding solutions across a range of market needs from micro finance to succession planning, pan-Wales and sector agnostic. Funding is often cited as a key barrier to growth for business. The availability and accessibility of finance from Development Bank of Wales, working alongside the private sector, gives Welsh businesses the confidence to start up and grow.
Angels Invest Wales, a subsidiary of Development Bank, is the largest angel network in Wales. It connects experienced investors with Welsh businesses seeking private investment. It currently has more than 300 investors signed up and facilitates c. £3m of investment annually. Angel investors are key to supporting new business and creating the SMEs of the future.
We are always looking to evolve our support to further engage, earlier this year we launched a new £20m SMART Flexible Innovation Support (SMART FIS) programme designed to help businesses invest in new cutting-edge research and innovation. We are also offering a £10m Circular Economy Fund for Business to support them move towards a circular, net zero carbon economy.