Wales must significantly increase its number of new start-up firms to drive economic growth, according to Professor Dylan Jones-Evans, who argues that the nation's entrepreneurial talent is not being matched by a supportive environment. Writing for the UK StartUp Awards, he highlights that Wales has roughly a quarter fewer businesses per 10,000 people than the UK average, a gap that undermines economic performance.
StartUp Awards showcase Welsh entrepreneurial talent
Over the past three weeks, the UK StartUp Awards held 10 events celebrating more than 900 new businesses across the UK. The final event for Wales took place in Cardiff on Thursday evening, highlighting the quality of entrepreneurs in the region. Winners ranged from digital businesses and green innovators to food producers, social enterprises, and young founders. Jones-Evans noted that the energy in the room was impossible to ignore, reflecting creativity, ambition, and resilience.
However, he cautioned that this optimism is tempered by the broader picture. Despite the evident talent, Wales lacks a healthy economy that constantly renews itself through new firms that create jobs and grow into scale-ups and mid-sized companies.
Business formation gap: 31,000 fewer firms than UK average
Official statistics show that if Wales matched the UK rate of business formation, it would have approximately 31,000 additional firms. This matters because fewer start-ups mean fewer businesses that can innovate, export, and expand into larger Welsh-owned companies. The gap is not closing; Welsh business births have fallen more than 27% from a post-Covid peak in 2021, more than double the UK decline of around 13%, and are now below 2020 levels. The stock of active enterprises in Wales has also shrunk since 2021, while other regions stabilise.
Matching the UK rate would require roughly 4,500 more new businesses created in Wales each year—close to half as many again as currently. Jones-Evans argues that without enough new and ambitious firms, every other policy objective becomes harder to achieve.
Six immediate steps to boost start-ups
Jones-Evans proposes six immediate actions to address the problem. First, treat universities and colleges as engines of new firm formation. Wales educates tens of thousands of talented students and graduates annually, yet only a tiny fraction start a business. A properly funded national graduate and student enterprise programme could change that.
Second, make the journey from idea to investment clearer. Too many first-time founders find the support landscape difficult to navigate. The region needs accelerators, founder networks, and stronger connections between new entrepreneurs and those a few years ahead.
Third, create more first-customer opportunities. Public bodies, large companies, universities, and anchor institutions should open up procurement to young Welsh firms by making contracts accessible and breaking large opportunities into smaller lots.
Fourth, create more physical spaces for founders. Jones-Evans cites the development of a private-sector-led entrepreneurship hub at Bodlondeb in Conwy, providing a practical place for new founders in north Wales. More such spaces are needed, rooted in local communities but connected to a wider national network.
Fifth, start earlier. Entrepreneurship should be visible in schools as a normal and attainable ambition, with young people meeting founders, working on real business challenges, and understanding money, markets, and customers.
Finally, celebrate Welsh start-ups more loudly. Events like the StartUp Awards in Cardiff show brilliant founders building serious businesses, but those stories need to be visible throughout the year.
Conclusion: Ambition exists, support system needed
Jones-Evans concludes that Wales does not need to copy Silicon Valley but must recognise that its economic future will be built by people already in the country—starting firms, solving problems, employing others, and creating value in their communities. The entrepreneurs, ideas, and ambition are there; the question is whether Wales is prepared to build the support system they need.
