Wales has seen a record-breaking increase in entrepreneurial activity, with new figures showing the highest levels of early-stage business rates on record according to he GEM 2023 report, which provides an annual snapshot of entrepreneurial trends across the UK.
The 2023 Global Entrepreneurship Monitor (GEM) Wales report finds that the rate of Total Early-Stage Entrepreneurial Activity (TEA) in Wales has reached an unprecedented 11.5% in 2023, a significant increase from 7.8% in 2022.
Entrepreneurship among young people in Wales has seen a remarkable rise, with 14.0% of young people now engaged in early-stage business activities, up from 2.0% in 2002.
The GEM 2023 report, which provides an annual snapshot of entrepreneurial trends across the UK, also reveals that 20% of non-entrepreneurial working-age adults in Wales intend to start a business within the next three years, up from 15.7% in 2022.
The TEA rate for women, at 9.5%, is close to that of 13.5% for men. Both figures represent an increase from the previous year.
The Cabinet Secretary for the Economy, Ken Skates, said:
“Wales is a great place to start a business. Whether you’ve always dreamed of being your own boss or your circumstances have led you to consider self-employment, we are here to help.
“As the GEM 2023 report shows, more people in Wales are seizing the opportunity to start their own businesses. As a government, we are committed to making Wales a place where our people feel confident in planning their future here and be part of our growing community of entrepreneurs who are shaping the economy of tomorrow.”
Through its Business Wales service, the Welsh Government offers support for individuals looking to start or grow their businesses. This includes free resources from practical advice on launching a business to detailed factsheets on various aspects of entrepreneurship.
Responding to the report Ben Cottam, Head of Wales at the Federation of Small Businesses, said:
“The significant increase in entrepreneurial activity in Wales and the clear appetite to establish new businesses, particularly amongst young people, is a positive sign. To become a high-growth, productive economy which creates well-paid jobs across Wales, we need successful businesses and new, innovative companies.
“Yet with business deaths in Wales still exceeding business births, the Welsh and UK Governments must prioritise policies that support small businesses at all stages of their lifecycle. This includes adequate access to finance, effective business support programmes and supportive tax and employment frameworks.
“Entrepreneurship and developing the skills of our talented business owners to help them grow their businesses, needs to be at the heart of any future plans for growing our economy. It needs to be reflected not just in business support but before that, in informing the aspirations of our younger people in schools and colleges. We therefore look forward to working with the Cabinet Secretary for the Economy and colleagues across government to foster a thriving business ecosystem in Wales where Welsh businesses can survive and thrive.”
