Report Sees Workforce Growth in Nearly a Third of Businesses Backed by Welsh Government Covid-19 Support

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Development Bank of Wales , 1st February 2023

A new report by Economic Intelligence Wales  assessing the impact of the Welsh Government’s interventions through its Economic Resilience Fund (ERF) shows 30% of small businesses surveyed have seen their employee numbers grow since the pandemic – with nearly half predicting further growth in the next 12 months.

Jointly commissioned by Economic Intelligence Wales, the Development Bank of Wales and the Welsh Government, the report is the third in a series which evaluates the effectiveness of the resilience fund.

It examines data from the ERF5 through to ERF8, which delivered £54m and supported more than 65,800 jobs.

The research also incorporates analysis of an in-depth survey of more than 1,600 businesses who received support from ERF3 to ERF7.

The report also provides an insight into the health and resilience of Welsh SMEs during post-pandemic economic shocks such as Brexit, inflationary pressures and the cost of living crisis – all of which have impacted their capacity to do business.

Some of the report’s findings include:

30% of respondents reported employee numbers had grown since the beginning of the pandemic
44% of respondents believed they will have more employees in the next 12 months
97% of businesses supported during phases ERF3 to ERF7 of funding were still trading at the time of the survey from February to May 2022
46% of respondents reported that they had developed new services or products in response to the Covid-19 pandemic
43% of respondents revealed that they invested in staff development
86% of respondents had received support from the UK Job Retention Scheme
89% of respondents agreed that Welsh Government assistance they received worked well in combination with other government support

The full report is available here.

Minister for Economy, Vaughan Gething MS, said:

“The series of reports produced by Economic Intelligence Wales demonstrates the impact of Welsh Government support during and following the Covid-19 pandemic. Focused support provided through the Economic Resilience Fund helped secure jobs and protect businesses during difficult times.

“I’m pleased to see businesses have not only gone on to employ more people since the pandemic, but many also believe they will see their employee numbers grow in the next 12 months.

“Despite continued economic setbacks following an unprecedented downturn, I’m glad to see the businesses we support have maintained cautious optimism and still see cause for growth despite difficult economic forecasts.”

Giles Thorley, Chief Executive of the Development Bank of Wales said:

“The ongoing analysis of support provided by Welsh Government, and timely assessment of the health of those businesses supported during the pandemic, is hugely valuable at a time when many companies continue to face further economic uncertainty and difficult trading circumstances.”

“The report identifies the obvious benefits of the Economic Resilience Fund, showing how targeted support from Welsh Government had a strong, positive impact during such times – and we at the Development Bank of Wales will continue to work alongside all of our partners to back Welsh businesses.”

Max Munday from the Welsh Economy Research Unit at Cardiff Business School, one of the report’s authors said:

“It has been encouraging to see the positive impacts of the Economic Resilience Fund on job creation and safeguarding, as well as on business resilience and survival.”

“However, a difficult new set of economic conditions now faces Welsh businesses, which we will explore through the final wave of survey work and will report on later this year.”

The final bespoke report in this series will include analysis of a longitudinal survey of recipients of Welsh Government Covid-19 financial interventions, including a final wave of surveys which will be undertaken in the first half of 2023.

Mae adroddiad newydd gan Dirnad Economi Cymru sy’n asesu effaith ymyriadau Llywodraeth Cymru drwy ei Chronfa Cadernid Economaidd (CCE) yn dangos bod 30% o’r busnesau bach a arolygwyd wedi gweld nifer eu gweithwyr yn tyfu ers y pandemig – gyda bron i hanner yn rhagweld twf pellach yn y 12 mis nesaf.

Yr adroddiad, a gomisiynwyd ar y cyd gan Dirnad Economi Cymru, Banc Datblygu Cymru a Llywodraeth Cymru, yw’r trydydd mewn cyfres sy’n gwerthuso effeithiolrwydd y gronfa cadernid.

Mae'n archwilio data o'r ERF5 hyd at ERF8, a gyflawnodd £54m ac a gefnogodd fwy na 65,800 o swyddi.

Mae'r ymchwil hefyd yn cynnwys dadansoddiad o arolwg manwl o fwy na 1,600 o fusnesau a gafodd gymorth gan ERF3 i ERF7.

Mae’r adroddiad hefyd yn rhoi cipolwg ar iechyd a chadernid busnesau bach a chanolig Cymru yn ystod ergydion economaidd ôl-bandemig fel Brexit, pwysau chwyddiant ac argyfwng costau byw – sydd i gyd wedi effeithio ar eu gallu i wneud busnes.

Mae rhai o ganfyddiadau’r adroddiad yn cynnwys:

Dywedodd 30% o'r ymatebwyr fod nifer y gweithwyr wedi cynyddu ers dechrau'r pandemig
Credai 44% o ymatebwyr y bydd ganddynt fwy o weithwyr yn y 12 mis nesaf
Roedd 97% o’r busnesau a gefnogwyd yn ystod camau cyllid ERF3 i ERF7 yn dal i fasnachu ar adeg yr arolwg rhwng Chwefror a Mai 2022
Dywedodd 46% o ymatebwyr eu bod wedi datblygu gwasanaethau neu gynhyrchion newydd mewn ymateb i bandemig Covid-19
Datgelodd 43% o ymatebwyr eu bod yn buddsoddi mewn datblygiad staff
Roedd 86% o’r ymatebwyr wedi cael cymorth gan Gynllun Cadw Swyddi’r DU
Cytunodd 89% o’r ymatebwyr fod y cymorth a gawsant gan Lywodraeth Cymru yn gweithio’n dda ar y cyd â chymorth arall gan y llywodraeth

Mae’r adroddiad llawn ar gael yma.

Dywedodd Gweinidog yr Economi, Vaughan Gething AS:

“Mae’r gyfres o adroddiadau a gynhyrchwyd gan Dirnad Economi Cymru yn dangos effaith cymorth Llywodraeth Cymru yn ystod ac ar ôl pandemig Covid-19. Helpodd cymorth â ffocws a ddarparwyd drwy’r Gronfa Cadernid Economaidd i sicrhau swyddi a diogelu busnesau yn ystod cyfnod anodd.

“Rwy’n falch o weld busnesau nid yn unig wedi mynd ymlaen i gyflogi mwy o bobl ers y pandemig, ond mae llawer hefyd yn credu y byddant yn gweld niferoedd eu gweithwyr yn tyfu yn y 12 mis nesaf.

“Er gwaethaf anawsterau economaidd parhaus yn dilyn dirywiad digynsail, rwy’n falch o weld y busnesau rydym yn eu cefnogi wedi cynnal optimistiaeth ofalus ac yn dal i weld achos am dwf er gwaethaf rhagolygon economaidd anodd.”

Dywedodd Giles Thorley, Prif Weithredwr Banc Datblygu Cymru:

“Mae’r dadansoddiad parhaus o gymorth a ddarperir gan Lywodraeth Cymru, ac asesiad amserol o iechyd y busnesau hynny a gefnogwyd yn ystod y pandemig, yn hynod werthfawr ar adeg pan fo llawer o gwmnïau’n parhau i wynebu ansicrwydd economaidd pellach ac amgylchiadau masnachu anodd.”

“Mae’r adroddiad yn nodi manteision amlwg y Gronfa Cadernid Economaidd, gan ddangos sut mae cymorth wedi’i dargedu gan Lywodraeth Cymru wedi cael effaith gref, gadarnhaol ar adegau o’r fath – a byddwn ni ym Manc Datblygu Cymru yn parhau i weithio ochr yn ochr â’n holl bartneriaid i gefnogi busnesau Cymru.”

Dywedodd Max Munday o Uned Ymchwil Economi Cymru yn Ysgol Busnes Caerdydd, un o awduron yr adroddiad:

“Mae wedi bod yn galonogol gweld effeithiau cadarnhaol y Gronfa Cadernid Economaidd ar greu a diogelu swyddi, yn ogystal ag ar gadernid a goroesiad busnes.”

“Fodd bynnag, mae set newydd anodd o amodau economaidd bellach yn wynebu busnesau Cymru, a byddwn yn archwilio’r rhain drwy’r don olaf o waith arolygu ac yn adrodd arnynt yn ddiweddarach eleni.”

Bydd yr adroddiad pwrpasol terfynol yn y gyfres hon yn cynnwys dadansoddiad o arolwg hydredol o dderbynwyr ymyriadau ariannol Covid-19 Llywodraeth Cymru, gan gynnwys ton olaf o arolygon a gynhelir yn ystod hanner cyntaf 2023.