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.”

WALES’ first ever conference focusing on sustainability in the food and drink industry will be held on Wednesday 3 July 2024 at the All Nations Centre, Cardiff and will be open to all food and drink businesses and professionals in Wales.

The Food & Drink Wales Sustainability Conference, which is being delivered by the Welsh Government’s Food & Drink Wales Sustainability Cluster, in collaboration with the Food & Drink Wales Insight Programme, will help businesses improve their sustainability in areas that matter most to consumers.

Using an interactive mix of activities and networking opportunities, the event aims to increase business knowledge across market insights, consumer trends, and buyer Corporate Social Responsibility (CSR).

The event will also demonstrate how Welsh Government is working to enhance the environmental performance of the food and drink industry and to highlight the successes of businesses in improving their sustainability.

The conference will also offer the opportunity to take part in the Carbon Reduction Plan Pilot Programme, designed to support business baseline their carbon emissions and develop actionable carbon reduction plans.

Mark Grant, Food & Drink Wales Sustainability Cluster Lead, who is organising the conference, said: “We are thrilled to launch the first Sustainability Conference in Wales. We have many great speakers with extensive knowledge and experience in the industry joining us, so it promises to be a beneficial event for all food and drink businesses and professionals in Wales. It will be a great chance for the industry to come together at this unique event to discuss and tackle sustainability.”

Supporting and developing sustainable business practices across Wales’ agri-food industry is at the heart of the Food & Drink Wales Sustainability Cluster’s work. Launched in January 2020, it uses the triple helix approach of government, industry and academia working hand in hand to tackle common industry problems.

The Cluster has over 100 producer members, along with 60 government bodies, academic organisations and support organisations including Food Innovation Wales, AMRC Cymru, FareShare, Wrap Cymru, National Farmers’ Union (NFU), Farmers Union of Wales (FUW) and Hybu Cig Cymru (HCC).

Functioning as a central hub, the Cluster provides intelligence to businesses, becoming the eyes and ears of the industry, developing networks and industry expertise to help Wales become a world leader in sustainability.

The conference is bringing together experts, trade and policymakers to explore the latest consumer insight from Kantar, IGD and The Food People, whilst finding out why sustainability is important to food business and the trade more widely.

Guest speaker Fiona Powell, IGD Head of Sustainability said: “I am delighted to be a part of the Food & Drink Wales Sustainability Conference where I will give an overview of how sustainable packaging is evolving, with some key insights on the current progress of environmental labelling in the UK. This will give the SME delegates insight as to what they can be planning for within their own businesses over the medium term.”

To register for the Food & Drink Wales Sustainability Conference visit: https://www.eventbrite.co.uk/e/sustainability-conference-2024-cynhadledd-cynaliadwyedd-2024-tickets-918660226467?aff=oddtdtcreator

A WEST WALES company has been fined £75,000 following the death of a 75-year-old man, Huw Evans, who was killed by a cow that had escaped from a livestock market. The incident occurred on November 19, 2022, at Whitland Livestock Market in Carmarthenshire, operated by J.J. Morris Limited.

Father-of-two Mr Evans was crossing the junction at North Road and West Street in Whitland when the cow, which was being auctioned, escaped from the market pen. The animal attacked Mr Evans, knocking him down and trampling him. He suffered multiple injuries and was airlifted to the University Hospital of Wales, where he succumbed to his injuries six days later.

A worker from J.J. Morris Limited was also injured during an unsuccessful attempt to recapture the cow. The cow eventually made its way towards Whitland Rugby Club and a railway line before being subdued and put down by Dyfed-Powys Police.

The Health and Safety Executive (HSE) launched an investigation into the incident and found that J.J. Morris Limited had failed to implement essential physical control measures to prevent cattle from escaping. The HSE concluded that the company’s risk assessment was inadequate, referencing control measures that were not in place at the market.

J.J. Morris Limited, based in Haverfordwest, admitted to breaching the Health and Safety at Work Act 1974. The company was fined £75,000 and ordered to pay £5,047.55 in costs by Llanelli Magistrates’ Court on Tuesday, June 20.

In court, Mr Evans’ son, Dafydd, expressed his grief, saying: “Dad was my best friend, and I miss him terribly. He was taken from us too soon. Losing dad has had a tremendous effect on both myself and my brother. Because of this incident, dad’s grandsons will never fully know him personally, and he will not see them grow up.”

Following the hearing, HSE inspector Rhys Hughes remarked, “This tragic incident was foreseeable and preventable. The risk posed by cattle escaping from the livestock mart should have been identified, and effective control measures implemented. The case highlights the importance of following industry guidance, which is readily accessible and outlines the requirements to safely manage cattle.”