A NEW report by the British Business Bank and Economic Intelligence Wales shows that while most Welsh SMEs remain financially stable, many continue to face barriers to accessing finance and are less likely than their counterparts in other devolved nations to seek funding for future growth.

The Wales SME Access to Finance Report 2026 has found that 66% of Welsh SMEs are currently using external finance, and eight in ten (80%) report a positive cash flow position. Despite this, 19% of smaller Welsh businesses reported experiencing barriers to accessing finance, the highest proportion among the devolved nations.

The report also highlights a more cautious outlook among Welsh SMEs when it comes to future investment. Just 17% of Welsh businesses expect to require additional finance over the next year, compared with 42% in Northern Ireland and 47% in Scotland. While 62% of Welsh SMEs that anticipate needing finance say they are confident about securing it, overall demand for funding remains lower than elsewhere in the UK.

Regional variations within Wales are also evident. SMEs based in North Wales and South West Wales were more likely to report barriers to finance (both 21%), while South West Wales businesses were least likely to feel confident about securing additional funding. At the same time, SMEs in South East Wales were most likely to report a finance requirement above £250,000, reflecting differing growth profiles across regions.

The findings underline the importance of a diverse and accessible finance ecosystem to support business investment, innovation and growth across all parts of Wales.

Susan Nightingale, Director UK Network, British Business Bank, said: “Welsh businesses continue to show resilience and confidence, with most reporting positive cash flow and steady growth expectations. Yet, clear regional and structural differences remain in access to finance, particularly for smaller businesses and sole traders. With Wales recording the highest share of smaller businesses experiencing barriers to finance among the devolved nations, it is vital that all businesses, wherever they are in the country, have the knowledge, confidence and support to secure the right finance for them. This will be key to unlocking sustainable growth across every part of Wales.”

Giles Thorley, Chief Executive of the Development Bank of Wales, said: “This year’s Wales SME Access to Finance Report shows a mixed picture. It’s encouraging to see many Welsh SMEs reporting strong cash flow, yet concerning that confidence and demand continue to lag behind other UK nations. If we want our businesses to innovate, invest and grow, closing that gap must remain a priority.

“Improving access to finance isn’t something any one organisation can solve alone, but the Development Bank of Wales will continue to play a vital role in supporting SMEs, working alongside partners across the wider finance ecosystem to help businesses invest, innovate and grow.”

Economic Intelligence Wales is a unique research collaboration between the Development Bank of Wales, Cardiff Business School, Bangor Business School, the Enterprise Research Centre, and the Office for National Statistics (ONS).

BUSINESS leaders, students and policymakers will gather in Pembrokeshire next month to mark International Women’s Day with an event focused on opportunity, leadership and retaining talent in West Wales.

The third annual Partners in Progress: Give to Gain conference will take place on Friday (Mar 6), bringing together established professionals and the next generation of workers to share practical advice and real-world experience.

The event is organised by Institute of Directors Wales, in partnership with Bluestone National Park Resort and the Welsh Government through Trade & Invest Wales.

Hosting the conference in West Wales, rather than a city centre, aims to highlight the growing opportunities available in regional communities and the role local employers play in keeping skilled people closer to home.

Running from 10:00am to 2:00pm, the programme will include panel discussions, site tours and networking sessions. Sixth form, college and university students will be encouraged to question speakers directly about careers, leadership and progression.

Speakers include Belinda Houghton-Jones of RBC Brewin Dolphin, Alex Shufflebottom Jones, former managing director of Shufflebottom Ltd and now an investor and mentor, Dr Owain James of Darogan, and Jane Wallace-Jones, founder of Something Different. The panel will be chaired by Richard Selby, National Chair of IoD Wales.

Organisers say the focus will be firmly practical, with businesses sharing examples of how they are developing staff, widening access to opportunity and building inclusive workplaces.

The discussion comes as Welsh firms continue to report difficulties recruiting and retaining skilled staff. IoD Wales’ latest State of the Nation survey found that skills shortages remain the biggest concern for almost four in ten organisations.

Jo Price, Nations Manager for Wales at IoD Wales, said the aim is to connect experience with ambition.

She said: “Partners in Progress is about bringing people together to tackle real challenges facing businesses and future talent in Wales.

“By connecting leaders and students in West Wales, we can share what works, build confidence and create opportunities where people live and want to work.”

Rebecca Rigby, Director of Operations at Bluestone, added: “We’re proud to host this event for a third year. It’s about creating meaningful connections between future talent and inspirational leaders, and showing what’s possible beyond the big cities.”

Thanks to Welsh Government support, tickets are fully funded, although places are limited. Standard prices are £25 plus VAT for members and £35 plus VAT for non-members.

Places can be booked online via the IoD website.

Party claims support could deliver up to eleven seats under new proportional system

THE GREEN PARTY says new polling suggests it could secure around thirteen percent of the vote at next year’s Senedd Cymru election, a figure the party claims could translate into as many as eleven seats under Wales’ expanded electoral system.

In a press release issued this week, the local branch of the Green Party of England and Wales said recent surveys showed the party “on target to win eleven seats” when the Senedd grows from sixty to ninety-six members in 2026.

The Herald has checked the claim. A January voting intention poll carried out by YouGov for ITV Cymru Wales and Cardiff University placed the Greens on thirteen percent across Wales.

The same poll put Plaid Cymru ahead on around thirty-seven percent, followed by Reform UK, with Labour and the Conservatives further behind.

However, political analysts stress that polls are only snapshots of opinion and not predictions of the final result. Support levels can change significantly during a campaign, and smaller parties’ seat totals depend heavily on regional performance and turnout.

Under the new fully proportional “closed list” system, voters will choose parties rather than individual constituency candidates, with seats allocated to better reflect overall vote share. This change is expected to make it easier for smaller parties to gain representation compared with the current system.

Amy Nicholass, the Greens’ lead candidate in Ceredigion Penfro, said the shift meant voters could “vote for what they truly believe in” without needing to vote tactically.

“It’s important that people understand their vote will count,” she said.

Tomass Jereminovics, second on the regional list, said the party wanted to focus on devolved issues including NHS waiting lists, access to NHS dentists and tackling poverty.

Both candidates are due to attend a People’s Assembly event in Penparcau on Friday (Feb 7).

While the poll suggests growing support, experts caution that translating thirteen percent of the vote into double-digit seats would depend on how evenly that support is spread across Wales. Final projections are unlikely to become clearer until closer to polling day.