While only one-fifth of the population of Wales are Welsh speakers, previous studies have indicated that they may have different economic characteristics from other language groups.
For example, research by various economists has shown that Welsh speakers have been found to have a lower unemployment rate, are less likely to be economically inactive and, most importantly, have an earnings advantage in Wales.
However, what about the impact of the Welsh language on entrepreneurial activity?
During the past 20 years, Wales has seen a proliferation in Welsh language businesses. For example, there are an increasing number of Welsh language bookshops independently owned by Welsh entrepreneurs.
In addition, the growing demand for Welsh literature has led to a number of Welsh publishing houses – such as Gwasg Gomer, y Lolfa, and Gwasg Gwynedd – and the development of a number of Welsh language magazine publications such as Golwg.
There has also been a particular revival in the production of children’s literature through the medium of Welsh during the past 30 years, driven mainly through a revival in Welsh language education.
While it would be expected that publishing would be a strong area for development, there are examples of a new type of professional Welsh language entrepreneur emerging in knowledge-based sectors such as media and television, mainly as a result of the commissioning activities of the Welsh language television channel S4C.
With much of this activity focused around Cardiff where both BBC Wales and S4C are located, the expansion of this sector follows a trend where much of the recent growth in Welsh language businesses has been outside the Welsh language heartland.
This development was driven by the increased demand for language skills which emerged as a direct result of the Welsh Language Acts which created unprecedented job opportunities for those who can speak the Welsh language.
This has led to a massive growth in translation facilities and an increase in the demand for the use of the Welsh language in large cities such as Cardiff and Swansea, which are traditionally non-Welsh-speaking areas.
The subsequent growth in Welsh-speaking professional classes, combined with a revival in terms of Welsh medium education in the same urban areas, has resulted in an increase in demand for educational services such as Welsh-speaking nannies and Welsh language nurseries in traditional non-Welsh speaking areas, thus creating more new businesses.
While such growth in new ventures is to be welcomed, it has been suggested that the expansion in the number of Welsh language entrepreneurs within non-Welsh speaking areas may actually be posing a real threat to the economic viability of the Welsh language heartlands as many are started by those who have moved away from those areas.
Indeed, the potential danger of a “brain drain” is exacerbated by the fact that these areas are already among the poorest in Europe and are those which can least afford to lose their entrepreneurial and talented young people to the more prosperous metropolitan regions.
Of course, given this situation, the question is how government should address this exodus by young Welsh speakers and whether there should be specific policies to encourage greater entrepreneurship within the Welsh language heartlands?
For example, following the demise of the Entrepreneurship Action Plan for Wales, business support programmes have been mainstreamed into a “one size fits all” approach. Given the need to encourage enterprise within the Welsh language heartlands, some have argued that there may be scope for strengthening support for potential and existing Welsh speaking entrepreneurs.
Others would contend that the Welsh language itself has little to do with the ability of most businesses in the Welsh speaking heartlands to succeed. What is more important is developing the right type of infrastructure – such as improved broadband, access to the right skills and transport links – that enable businesses in the rural Welsh-speaking parts of Wales to develop and grow.
Whatever the solution, it is clear that for the economic prosperity of Wales to develop, we must ensure that both Welsh speaking entrepreneurs and businesses which are based on the Welsh language are given the full support to flourish wherever they are based.
Comments
Setting up a business to provide translation facilities or Welsh books and media products is a long term Achilles heel of the Welsh economy.
It is only ever going to cater for a small percentage of the population, including the chattering political classes, and the potential market growth is seriously limited to Wales.
And with a serious tightening of public expenditure now inevitable, whoever wins the next general election, isn't it the case that these subsidy driven language based initiatives will have to go back of the queue as key sectors such as the NHS and education are prioritised?
Unless and until policy makers "get it" that the future success of Wales will be in a global context, not seen through a very narrow prism of "Welshness", then I'm afraid the future will be bleak.
We need to look outward, because a continual need for even Tory and other unionist politicians in Wales to feel the need to ingratitate themselves with this "language wave" is going to exacerbate the problem Wales faces going forward.
Innovating and outward looking entrepreneurs, who see the whole world as their market are the ones who will succeed, and with them Wales.
And finally, it is possible in a nuanced way to criticise this obsession with doing everything "in Welsh" without being against the language.
Well, yes, but this doesn't mean that the business growth is limited to Wales. You don't have to llok far to see businesses which have started off supplying Welsh language media products, and have then expanded into English language media in Wales and outside. Think Boomerang, Tinopolis. Wales also has a strong animation sector, which started off with Superted in Welsh but now does business globally.
There's nothing at all wrong with starting a business in a "home" market before expanding nationally and then internationally. That's what Starbucks did.
Businesses targetting the Welsh language market get no more direct subsidy than any other. They might target a subsidised market, but so do very many other businesses throughout the UK. Think of all those consultants and contractors whose principal market is the public sector.
While it's true that WAG has "invested" more in economic development as a proportion of public spending than England, most of this direct subsidy has gone to the valleys, not to the Welsh language. And I don't see any AIM-listed companies there...