The number of business start-ups in Wales is outperforming the 海角视频 as a whole, according to a wide-ranging assessment of the economy from the research body Economic Intelligence Wales.
Using numerous data sources, including from the ONS, its Economic Intelligence Wales’ (EIW) report shows that in the first quarter of this year business start-ups in Wales were up 31% on Q1 of 2020 - an increase from 3,500 to 4,560.
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For the 海角视频 as a whole there was a 14% rise from 120,000 to 136,800.
In Wales over the same period business closures were down 1%, with an increase of 7% across the 海角视频.
However, the value of Welsh exports in the year to Q1 2021, declined by 27% while imports decreased by 25%, the highest of all 海角视频 countries underlying the impact of the pandemic and Brexit.
The proportion of Welsh SMEs using finance which were concerned about their ability to repay debt, increased from 24% in Q3 2020 (21% for 海角视频 SMEs) to 30% in Q4 2020 (24% for 海角视频 SMEs).
Launched in 2018, Economic Intelligence Wales is a collaboration between the Development Bank of Wales, Cardiff Business School and the Office of National Statistics (ONS)
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Max Munday from the Welsh Economy Research Unit at Cardiff Business School said: “The annual report reveals something of a Welsh recovery from the worst of the Covid-19 pandemic and with an improvement in new business starts in the first quarter of the year. However, business prospects in the first half were still heavily impacted over uncertainty regarding Covid-19 regulations.”
“The data provides evidence of the important role played by the Development Bank through the worst of the pandemic period in supporting Welsh SMEs. Indeed, while much of the regional economy has seen activity fall in the year to April 2021, it has been an extremely busy time for the Bank in working to safeguard activity in our small firm base.”
The research shows that on equity investment into Welsh SMEs in 2020 some 58% of deals involved a government fund.
Giles Thorley, chief executive of the Development Bank of Wales, said: “The last 18 months have been incredibly difficult for most businesses across Wales, but we’ve also seen a record number of business start-ups as entrepreneurism and creativity shine through.
"This report by Economic Intelligence Wales shows just how events have really fuelled the increased demand for funding of both start-ups and established businesses, including our Covid-19 Wales Business Loan Scheme that provided much needed cashflow support.
“Furthermore, the data provides important insight into the demand for finance across Wales and helps to improve our understanding of SMEs and their role within the Welsh economy helping us to focus on the Development Bank’s wider economic impact by measuring our contribution and acting as a benchmark to guide our investment decisions.
“With every £1m of our combined business as usual and Covid-19 Wales Business Loan scheme investment generating an estimated £4.7m of Welsh GVA, we remain focused on providing sustainable and effective finance for Welsh businesses that drives recovery post-Covid and unlocks the economic potential of Wales.”