Wales does not lack entrepreneurial talent, ideas or ambition, but it lacks a healthy economy that should be constantly renewing itself as new firms emerge to test ideas, create jobs, and grow into scale-ups and mid-sized companies, according to columnist Dylan Jones-Evans. Writing after the UK StartUp Awards final for Wales in Cardiff, he highlighted that while the energy and quality of entrepreneurs on display were impressive, the wider economic picture remains frustrating.
Wales has a quarter fewer businesses per capita
Official statistics show that Wales has roughly a quarter fewer businesses per 10,000 people than the UK as a whole. If Wales matched the UK rate, it would have approximately 31,000 additional firms. This gap is one of the clearest explanations for why the Welsh economy continues to underperform, as fewer start-ups mean fewer businesses that can innovate, export and grow into larger Welsh-owned companies.
The situation is not improving. Welsh business births are down more than 27% from a 2021 post-Covid peak, more than double the UK decline of around 13%, and are now below even their 2020 level. The stock of active enterprises in Wales has also shrunk since 2021, meaning the business base is contracting while others stabilise. Matching the UK’s rate of business formation would mean roughly 4,500 more new businesses created in Wales every year.
Universities and colleges as engines of enterprise
Jones-Evans proposes several immediate steps. First, universities and colleges should be treated as engines of new firm formation. Wales educates tens of thousands of talented students and graduates annually, yet only a tiny fraction ever start a business. A properly funded national graduate and student enterprise programme could change that.
Second, the journey from idea to investment needs to be clearer. Too many first-time founders find the support landscape difficult to navigate. Accelerators, founder networks and stronger connections between new entrepreneurs and those a few years ahead could help. A founder who has just hired their tenth employee or raised their first investment round can often be more useful than many business advisers.
Procurement and physical spaces for start-ups
Third, more first-customer opportunities should be created. Public bodies, large companies, universities and anchor institutions should open up procurement opportunities to young Welsh firms, making contracts accessible and breaking large opportunities into smaller lots. Fourth, more physical spaces are needed where people can take their first steps as founders. Jones-Evans notes the development of a private-sector-led entrepreneurship hub at Bodlondeb in Conwy as an example, but says Wales needs more such spaces rooted in local communities yet connected to a wider national network.
Early exposure and celebration
Fifth, entrepreneurship should be visible in schools as a normal and attainable ambition, with young people meeting founders and working on real business challenges. Finally, Welsh start-ups need to be celebrated more loudly throughout the year, not just at awards events. Jones-Evans concludes that the entrepreneurs, ideas and ambition are there, but the question is whether Wales is prepared to build the support system they need.
