Business
40% of Welsh SMEs had to stop or pause business due to lack of financing
MOST common activities that Welsh SMEs have been forced to pause include marketing, launching new products and production
15% of Welsh SMEs that looked to secure external finance were unable to access it
Biggest barriers in sourcing external finance were cost, not understanding the business and lack of flexibility with repayment terms
Over the next 12 months, Welsh SMEs believe sales, new product development, new market expansion and marketing will be areas of growth
With appropriate external finance, most SMEs believe they could grow their business by up to 29% in the next 12 months – significant increase from 19% in 2023
Two in five (40%) of Welsh small and medium sized enterprises (“SMEs”) have had to stop or pause an area of their business because of a lack of finance over the last couple of years. This is according to new research1 commissioned by Manx Financial Group PLC (AIM:MFX), the financial services group which includes, amongst other operating subsidiaries, Conister Bank Limited (“Conister”), Conister Finance & Leasing Limited and Blue Star Business Solutions Limited.
The most common activities that Welsh SMEs have been forced to pause or stop because of a lack of financing were include marketing, launching new products and production.
Manx Financial Group’s research showed that nearly a third (31%) of UK SMEs as a whole have paused an area of their activity and while this has decreased from 40%2 in 2023, one in ten SMEs that looked to secure external finance and/or capital were unable to access it. In Wales this number was 15%.
The most popular external finance options for Welsh SMEs were short-term business loans and secured loans. The survey also highlighted that the biggest barriers faced by Welsh SMEs in sourcing external finance and/or capital were that it was too expensive, they not understanding the business and there was a lack of flexibility with repayment terms.
Over the next 12 months, Welsh SMEs believe sales, new product development, new market expansion and marketing will be areas of growth.
The research showed that less UK businesses are anticipating stagnant growth over the next 12 months – just 25% this year compared to 27% in 2023 and 34%3 in 2022. Indeed, with appropriate external finance, most SMEs believe they could grow their business by up to 29% in the next 12 months, which is a significant increase from 19% in 2023.
Douglas Grant, Group CEO at Manx Financial Group PLC, commented: “Our research reveals a persistent challenge that SMEs continue to face: securing financing remains difficult. This limited access to finance poses serious risks for both SMEs and the broader UK economy, particularly in terms of growth during uncertain times when support is most needed. The economic impact is significant, as SMEs contribute to about half of all private sector turnover in the UK. Innovative solutions are urgently required to address this funding gap.
“As borrowing costs stay high, many businesses are experiencing their own financial crises. This financial constraint, coupled with a potentially unprecedented and volatile environment marked by ongoing geopolitical tensions, multiple elections, a tightening labour market, and persistent cost-of-living challenges, poses obstacles to the prospects of SMEs and national economic growth.
“Although some SMEs have mitigated risks by locking in fixed-rate debt, many others are now struggling with increasing costs without a financial cushion. Government intervention is crucial to support SMEs, which are vital to the UK economy and, for some time, we have been advocating for a permanent government-backed loan scheme tailored to different sectors and incorporating both traditional and non-traditional lenders. Such a permanent scheme has the potential to play a pivotal role in unlocking economic resurgence for numerous companies, thereby sustaining the overall economy—especially as in an uncertain economic environment like the one we see today.”
Business
Bluestone National Park Resort pledges support to armed forces community
BLUESTONE National Park Resort has signed the Armed Forces Covenant to pledge its commitment to the UK Armed Forces as the country commemorates Armistice Day.
Bluestone, which employs several former armed forces personnel, marked Armistice Day on 11, with a commitment to reaching gold status on the covenant.
The Armed Forces Covenant is a promise by the nation to ensure that those who serve or have served in the armed forces and their families are treated fairly.
The Covenant aims to eliminate disadvantage and ensure that no member of the armed forces community faces discrimination in providing public and commercial services compared to any other citizen.
Glenn Hewer, Head of Sales at Bluestone, is a former Royal Marine who volunteers with the Milford Haven Sea Cadets and Royal Marines. He said: “More and more employees recognise the importance and significance that former armed personnel have and play in their communities and workplaces. The covenant is a commitment to them and a recognition of what they and their families have sacrificed for us.
“Additionally, ex-forces personnel make great employees in all walks of life. They are highly trained in a wide range of skills and bring many benefits to businesses. Providing an opportunity that allows them to further their careers outside the military is a great way of supporting them and their families.”
This commitment has also led Bluestone to join the Defence Employer Recognition Scheme (ERS) Bronze award. The ERS encourages employers to support defence and inspire others to do the same. It encompasses bronze, silver, and gold awards for organisations that pledge, demonstrate, or advocate support for defence and the armed forces community.
Marten Lewis, Director of Sustainability at Bluestone National Park Resort who is also a veteran of the Royal Engineers, said: “At Bluestone, we deeply value the contribution of the Armed Forces community to our country.
“We are proud to sign the Armed Forces Covenant and demonstrate our commitment to supporting them. We believe it’s important to recognise the sacrifices made by service personnel and their families and ensure they are treated with the respect and fairness they deserve. We are committed to attaining the Gold ERS as we build our relationship with the armed forces community.”
Craig Middle, Regional Employer Engagement Director at the Ministry of Defence, said: “We are delighted that Bluestone National Park Resort has signed the Armed Forces Covenant and is committed to supporting the Armed Forces community. This is a fantastic example of a business recognising the value that serving personnel, veterans and their families bring to the workplace and wider society.”
Marten added: “The Armed Forces Covenant is a living document, and Bluestone is committed to updating its pledge to reflect its ongoing support for the Armed Forces community.”
Business
Small business briefing hosted by Local MS
A BRIEFING event which considered how to best support small businesses in Wales has been hosted by Preseli Pembrokeshire Senedd Member Paul Davies. Mr Davies hosted the event in partnership with the Development Bank of Wales, Economic Intelligence Wales and the Federation of Small Businesses (FSB) Wales at the Norwegian Church in Cardiff Bay. The theme of the event was ‘productivity’, given that Wales has had a persistent productivity gap with the UK as a whole and with other international competitor regions.
Mr Davies said, “It’s always a pleasure to help facilitate discussions on how we can support small businesses across Wales. 99.3% of businesses in Wales are small or medium enterprises (SMEs) and it’s important for us to explore the opportunities there are to boost SME growth.”
“Business-friendly policies are needed to address Wales’s persistent productivity gap, and we heard from the speakers today that more support is needed in areas like skills development, infrastructure enhancements and planning.”
“As I’ve said before, the Welsh Government has some significant economic levers, and it must now use those levers to create conditions for growth in Wales. We know that when small businesses thrive, they create jobs, spread prosperity and keep our communities vibrant and it’s crucial that governments at all levels do more to support our small businesses and enable them to grow.”
Business
Bristol Trader to temporarily serve menu at the Castle Hotel
The team of a popular riverside pub in Pembrokeshire, devastated by a recent fire, will relocate to a new town centre location while repair work is carried out on the original site.
On Wednesday, 6 November, a fire broke out at The Bristol Trader, situated on Haverfordwest’s riverside, causing significant damage to the building. The fire affected two floors of the pub as well as the roof space, forcing its closure. Smoke from the blaze was visible across the town as firefighters from Haverfordwest and Milford Haven worked for two hours to extinguish the flames.
Following the incident, the pub’s owners expressed their sadness, describing the team as “absolutely heartbroken” but determined to reopen and come back stronger. They extended their gratitude to the regulars, locals, friends, and family who have offered their support during this difficult time.
In the meantime, The Bristol Trader team will continue operating from an alternative venue. Beginning Monday, 18 November, the pub will relocate to the restaurant of the Castle Hotel, located on Haverfordwest Square, where they’ll serve the same menu.
“While repairs are being made to The Bristol Trader, Team Trader are being temporarily relocated to The Castle Hotel Restaurant from Monday the 18th of November,” announced the team in a social media post. “All our menus are attached to our Facebook page, and the phone lines are being redirected.”
Anyone with a booking at The Bristol Trader who hasn’t been in touch since the fire on 6 November is encouraged to contact the team at 01437 762122.
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