160 Welsh Businesses Identified as Potential Next Generation of Growth Companies

160 Welsh Businesses Identified as Potential Next Generation of Growth Companies

A group of 160 Welsh businesses could represent a significant pipeline of future high-growth companies if Wales can provide the commercial support, finance and connections needed to help them scale, according to new research from NatWest Cymru. The businesses have been identified as part of what NatWest describes as Wales' "untapped innovation cohort", companies which are already demonstrating innovation and commercial success but have further growth potential to unlock. Rather than a shortage of innovative businesses, the findings suggest one of the bigger economic opportunities for Wales is converting more of the companies it already has into larger, higher-productivity employers. The research points to evidence that Wales is already capable of generating investable innovation. Grant-backed innovative Welsh businesses have attracted more than £1.28 billion in follow-on investment, while 201 spinout companies have emerged from Welsh universities. Wales also has established and emerging strengths in areas including advanced manufacturing, compound semiconductors, life sciences, clean energy and digital technology. However, businesses consulted for the research said access to finance represents only part of the challenge. Customers, routes to market, commercial expertise, leadership support and connections into stronger innovation networks were also identified as important factors determining whether promising companies successfully scale. That potentially places greater emphasis on creating an ecosystem around Welsh growth businesses rather than simply increasing the amount of funding available to them. Welsh Government Cabinet Minister for Enterprise, Connectivity and Energy, Adam Price, said: "Unleashing the full potential of the Welsh economy by driving higher productivity is our key economic mission. "Innovation and productivity go hand in hand and can help ambitious businesses scale successfully, develop new products and processes to compete in higher-value markets and create good quality employment opportunities in the process. "I welcome this research, which further highlights that we are a nation with significant economic potential. We are determined to provide the leadership needed to turn that potential into performance." Siwan Rees, Manager for NatWest Cymru Accelerator, said: "Wales has all the ingredients needed to be a leader in innovation, from world-class universities and research institutions to strengths in advanced manufacturing, semiconductors, life sciences and clean energy. "Businesses like Final Rentals show what can happen when innovative Welsh companies are given access to the right support and funding at the right time. "What this research highlights is the opportunity to help more businesses follow a similar path, turning great ideas into commercial success. We have identified 160 businesses that are already innovating and growing. By helping these firms access the finance, expertise and networks they need to scale, Wales has an opportunity to create skilled jobs, attract further investment and drive the next chapter of economic growth." The findings raise a wider economic development question for Wales: not simply how to create more start-ups and innovative ideas, but how to identify promising businesses earlier and help significantly more of them develop into major Welsh employers. With 160 companies already identified, the opportunity may be less about finding Wales' next generation of growth businesses, and more about ensuring they are able to fulfil their potential.