Wales needs to be ambitious in its business support if it is to unlock the full potential of its home-grown startups and scaleups.
That was the message from business leaders on the inaugural episode of the Business in Focus podcast series From Startup to Scaleup.
As the economy continues to face challenges from global uncertainty and technological change, a renewed focus is needed on fostering confidence, ambition and long-term growth, guests said.
Speaking on the podcast Phil Jones, CEO of Business in Focus, said there was a clear opportunity to back Welsh entrepreneurs at a time when both the UK and Welsh Governments are prioritising economic growth.
“The Business Wales service that we deliver on behalf of the Welsh Government is unique and it is revered from the rest of the UK,” said Phil.
“When I speak to people around the UK about what we deliver, their eyes almost pop out at the fact that our devolved government invests this amount in the spine of the Welsh economy – our SMEs.”
Phil said support must go beyond technical advice and play a role in shaping leadership and unlocking ambition.
“Ambition is absolutely vital,” he said. “Someone put it to me recently that business support is combining confidence, capability and connections – and that’s what allows the mindset of a startup or mature business to shift and grow.”
He added that demand for industrial space among Welsh SMEs is strong, but that a lack of availability is constraining growth:
“We provide business space at Business in Focus and have a waiting list as long as several arms. If we had the funding and planning permission, we could fill 30 or 40 new units based on the demand we’re seeing.”
David Stevens, Chair of Business in Focus and co-founder of Admiral, said Wales must take greater ownership of its economic future.
“Wales is going to have to rely more and more on small and startup businesses because of the deglobalisation that we're seeing with first Brexit and then tariffs,” said David.
“We have to be the masters of our own destiny and not rely on outsiders to come in riding over the horizon and saving the day.”
He said early-stage support was essential in helping new businesses move past the most vulnerable part of their journey and pointed to the role that business support played in Admiral’s decision to set up in Cardiff in the early 1990s.
“There was a structure that created incentives to come to Cardiff,” he said. “South Glamorgan Council did a wonderful job persuading us, with a variety of help and some great relationship management.”
David also emphasised the importance of ambition. Reflecting on Admiral’s early growth, he said:
“Before we even launched, our plan was to be a billion turnover in 10 years and to be in four countries. We combined focus on the immediate day to day with keeping in mind that target – and I think that was really important to our success.”
Jessica Shipman, Chair of NatWest’s Cymru Regional Board, said founders and leaders need to be more open to engaging with the support that is already available.
“We know the appetite for growth exists – NatWest has £3.2 billion in lending capacity available for businesses in Wales, but only £2.4 billion is drawn,” she said.
“And only a small proportion of our lending last year was for growth investment. That’s a concern, and it points to a broader issue around confidence and ambition.”
Jessica said that early advice can help founders refine their business plan, avoid common pitfalls and be better prepared to access finance at the right time.
“Founders often have bias in terms of their business – and having external counsel to challenge them can really shape the plan and make sure they’re using funding in the best way possible,” said Jessica.
“Early engagement ends up allowing them to go faster in the long run.”
She added that more collaboration and better storytelling are needed to encourage more people in Wales to see entrepreneurship as a viable route.
“If we plug into all the different parts and work together as an ecosystem, we can create the conditions where confidence and ambition grow,” said Jessica.
Hear more in the Business in Focus podcast episode Why Business Support is More Vital Than Ever in a Changing Wales. Listen to the podcast here.
