PROFESSOR DYLAN JONES-EVANS

They say the simple ideas are sometimes the best ones and when it comes to simple ideas that make a real difference, the Irish are natural winners. Last week, I came across what can only be described as pure genius, if Guinness will forgive me for using that phrase. The Irish Government has recently launched a new Irish Innovation Centre which will be a launchpad for Irish technology companies as the Emerald Isle struggles to come out of recession. And where have they based it? Is it in Dublin or Cork or Limerick? No, they have opened it up in San Jose, California, in the heart of Silicon Valley. As a result, Irish companies can now gain access to venture firms, bankers, customers, suppliers and employees in the World's most innovative and entrepreneurial environment. The centre also has access to the Irish Technology Leadership Group (ITLG), which provides companies access to a “built in” network of successful Silicon Valley business executives from global technology c...

Last Tuesday, the Federation of Small Businesses (FSB) responded to the suggestion, by the Welsh Assembly Government press office, that they were fully supportive of the Economic Renewal Programme. I reproduce the letter here with no further comment as I believe it is self-explanatory. SIR – It was extremely interesting yet quite alarming to read the Welsh Assembly Government’s response to the Federation of Small Businesses’ call for more detail on transport spending priorities (“Small businesses blast WAG over roads-upgrade funding”, August 16). The first alarming point was their assertion that we called on WAG to double the transport budget, which was a rather pathetic attempt at throwing a red herring. The quote “we need to double the current level of investment in road infrastructure just to match the spending of our European competitors in France and Germany” is clearly an indication of the scale of the issue, not an actual proposal. Of course, in the absence of any detai...

According to the Belfast Telegraph , the accountants PricewaterhouseCoopers (PwC) have just published a report that supports corporation tax varying powers to Northern Ireland. Entitled “Making the most of devolution”, it calls for “ Enterprise Zone status and tax-varying powers to make the region more attractive to overseas investors." It builds on the report earlier this year by the Independent Review of Economic Policy (IREP), which also recommended differential rates of corporation tax in Northern Ireland, a move which is being considered by George Osborne. What is relevant to Wales is the call, by PwC chief economist Dr Esmond Birnie, for Northern Ireland “to work with their Scottish and Welsh counterparts to exploit every advantage to make devolution real”. This follows a similar call by Gerry Holtham and his recent review that: “ The Assembly Government should seek discussions with the UK Government and the other devolved administrations about the feasibility o...

Another comment on this blog, which if correct, makes me wonder what on earth is going on within the Welsh Assembly Government. For clarity, this follows a comment where it was suggested that R and D grants would remain non-payable "I'm afraid total confusion appears to reign within WAG as well as outside. I'm not sure where Anon got his information about R and D grants not being repayable but I've been told ALL grants will be repayable. Given that the R and D grants eligibility criteria is that there is technical risk - and hence the product may never be launched - why would I saddle myself with a repayable grant when there is a possibility of no product sales with which to repay it. Since non-repayable grants are available in the rest of the UK, moving the R and D element of my business to England is a compelling option. London First have been extremely helpful and, unlike WAG, understand my business. I also have far greater access to expertise in London and ...

As Wales’ largest county, Powys has had some notable industrial successes throughout its history. It was the birthplace of Robert Owen , the creator of the co-operative movement and the location of the first mail order business in the world – Pryce Jones of Newtown . It is also where Laura Ashley , arguably one of Wales’ most famous entrepreneurs, chose to start her textile business in the 1960s which took Welsh fashion designs around the globe. Given this business heritage, it is disappointing that, in terms of economic policy during the last decade, Powys has become very much the forgotten county of Wales. For example, when Wales applied for European funding back in the late 1990s, Powys was omitted from the list of counties that was put together to make up the artificial region now known as West Wales and the Valleys. As a result, not only did Powys then lose out on a share of the £1.2 billion of European funding made available to West Wales and the Valleys, but it also lost ...

Another business advisor has contacted me over the ERP and changes to the economy. He has sent the following email to Ieuan Wyn Jones and he has kindly allowed me to reproduce it here. "Dear Minister I have been involved in corporate finance in Wales for 13 years; the last two in my own limited company consultancy business. My experience has shown that targeted grant support (both ‘free’ and repayable) for the right businesses has been invaluable in allowing them to start/expand/locate to Wales and to create real, sustainable, well paid and highly skilled jobs. Both my clients (previous and current) and I have been shocked by the approach taken by the Welsh Assembly Government. My clients’ view is that Wales is now ‘closed for business’ – surely not the intention you hoped to portray, but genuine feedback nonetheless. I have been lucky to work with some excellent businesses in my working career. Even in the last two years, projects for which I have helped to secure grant su...

This comment was left yesterday by Bob Shepherd on one of the blog entries from last week. I reproduce it here for those who may have missed it as it demonstrates the strong feelings out there in the business support community over these changes to economic development in Wales. Unlike some of the commentators who have posted on this blog lately, individuals such as Bob are those who are working every day to try and bring business into Wales. Yes, these changes directly affects businesses such as Bob's but it is clear that, at least in the short term, the ERP will also affect the potential of the rest of the Welsh economy to grow itself out of recession. "I am a consultant who has dealt with grants, finance and mentoring, both for and despite the WAG activities. I have friends and colleagues who move in my world, some of whom are (still) working for WAG in some context or other. I am not a big fan of the WAG business support efforts in recent years but what has happen...

It was good to finally see the Federation of Small Businesses (FSB) in Wales finally baring its teeth over WAG’s plans to change the economy in this morning’s Western Mail and suggesting, as this blog has for the last few weeks, that small firms are suffering as a result of this policy. The response from WAG was predictably one of denial, and reflecting its current strategy that if its spokespersons keep stating that the Economic Renewal Programme (ERP) will be helping small firms in Wales often enough, the rest of us may start to believe it. However, it is interesting what the WAG spokesperson has noted in the article, namely that "The FSB were consulted extensively during the formation of this policy”. In other words, the FSB agrees with the ERP and shouldn't now be complaining about its implementation. Of course, the FSB, like all other organisations across Wales, was consulted over what should be in the Economic Renewal programme. However, as far as I am aw...

What has become clear, in the absence of any real consultation by politicians and policymakers about the implications of the new Economic Renewal Programme, is that many small businesses simply do not have a clue about the fact that WAG is abolishing all grants for businesses. The only exceptions to this decision are those firms within the six key sectors of ICT, energy and environment, advanced materials and manufacturing, financial and professional services, creative industries and life sciences which will be moved into a new repayable grant system. WAG certainly seems to be in an inordinate rush to disadvantage small business in Wales. According to a senior businessman I spoke to last week, all grants from the Welsh Assembly Government have been stopped immediately although the new repayable grant system for six key sectors will not be operational until the end of the year. As a result, it seems that no government support will be available to the small firm commu...

With the advent of the "Big Society" in the UK, the Economist makes timely reminder of the obstacles that faces those "social entrepreneurs' who try and bring innovation to their communities and try solve some of society’s most intractable problems . Of course, this is nothing new. As I wrote over two years ago , there should be a greater partnership between government and social entrepreneurs to find creative and sustainable solutions to society’s problems, especially within some of the poorest regions of Europe such as West Wales and the Valleys. Indeed, the same problems seem to exist wherever you are in the World. As the Economist points out, the biggest obstacle in both America and Britain is likely to be the inertia of the bureaucratic, rule-bound public sector. It also notes that success may depend on the emergence of a subgroup of social entrepreneur that (are called) “civic entrepreneurs”, who can navigate the treacherous waters of bureaucracy. Giv...

One of the great management thinkers of our time is Tom Peters, who broke into the consciousness of the business world through his writings with Robert Waterman in the groundbreaking book "In Search of Excellence". His subsequent writings have been very much on the same theme of trying to see the different side of management practices and his 2003 book "Re-imagine" still has the power to make one think differently about the business world. If you want a peek inside the book, you can access Chapter 2 here . One of Tom's real strengths is to be able to make the complex sound simple and his blog is a joy in deconstructing the most complex issues. I particularly enjoyed this week's entry and I thought that it had real echoes for not only individuals but for organisations and even government (including our own here in Wales!). As Tom says: "I started blogging in June of 2004, and the best part of it, frankly, is the wonderful comments that come fr...

Finally, some good news for the Welsh economy. According to a report from the BBC , more than 100 jobs could be created after the expansion of Unit Engineers and Constructors Ltd with significant positive knock-on effect on suppliers and sub-contractors in Wales. More importantly, the company expects its overseas trading activity to significantly increase to make it one of the  leading exporters in Wales. For those of you who follow this site, Unit was the fastest growing firm in Wales in 2009.  Led by the irrepressible Bill Ledwood (pictured), the company has grown by 978 per cent in the period 2006-2008, and currently employs 167 people. Read the interview with Bill following last year's Fast Growth 50 awards here . Its latest development sees it expanding its base through the purchase of the Midlands-based firm Birwelco Ltd and Unit forecasts an annual turnover of more than £50 million for its acquisition by 2013. Congratulations to Bill and his team and given...

A study from the European Commission has shown the benefits of internationalisation by small companies for the development of local economies. The report "Internationalisation of European SMEs” maps the level of internationalisation of small firms in Europe and identifies the main barriers and advantages of the internationalisation process. It found that: internationally-active SMEs report an employment growth of 7 per cent whereas the figure stood at 1 per cent for those without any international activities. there is also a strong relationship between internationalisation and innovation. 26 per cent of internationally active SMEs introduced products or services that were new for their sector in their country as compared to 8 per cent for other small businesses the sectors of activity with the highest share of exporting SMEs are mining (58 per cent), manufacturing (56 per cent), wholesale trade (54 per cent), research (54 per cent), sales of motor vehicles (53 per cent), r...

There has been some comment from on the last post regarding the Finnish Government's latest approach to broadband. Simply put, Finland has become the first country in the world to make broadband a legal right for all its citizens, entitling them to a one megabit per second broadband connection now, with a 100-Mbit/s connection to become a right by the end of 2015. As a result, all Finns, including those living in sparsely-populated areas, will be connected to the internet with fast fibre-optic or cable networks by this target date. Therefore, the objective of the project is to ensure that nearly all (more than 99 per cent of the population) permanent places of residence and places of business and public administration are no further than two kilometres from a 100 Mbit/s fibre-optic or cable network. In principle that sounds very similar to Wales but in practice, it is very different. Unlike the proposals from WAG, telecommunication operators themselves are expected to const...

One of the key decisions of the Economic Renewal Programme (ERP) is the abolition of funding and support for the majority of small businesses in Wales. Instead, the savings made will go towards the £240 million required by the Welsh Assembly Government (WAG) to invest in a “next generation” broadband infrastructure for Wales by 2016. Investment into critical new technologies can make a real difference to the productivity of businesses and there is certainly a case for extending the current broadband provision away from the main industrial urban and localities to the more deprived communities and those rural areas which still depend on dial up modems to access the internet. However, the major weakness within the ERP is that the Welsh Assembly Government simply fails to make a coherent case as to why this is a better form of investment than supporting firms directly, and why government should fund this instead of the private sector. Let’s start with the rationale that the investmen...

Whilst looking for an article last week, I came across this 2001 piece from the BBC which reported on my IWA pamphlet " Creating an entrepreneurial Wales " which I wrote during my tenure as Professor of Enterprise at the University of Wales Bangor (as it was then). As it states: "The Welsh Assembly has been urged to focus on supporting business entrepreneurs to meet their growth targets and help lift the economy. In a report for the Institute of Welsh Affairs, Creating an Entrepreneurial Wales, the administration is advised to aid growing small and medium enterprises (SMEs), which make up a significant percentage of the business base in Wales. Current assembly policy - particularly European Objective One strategy for regenerating deprived areas of Wales - "ignores the (entrepreneurial) sector completely", the IWA report concludes. Its author Professor Dylan Jones-Evans, from the University of Wales, Bangor, said the assembly's targets under the N...

The new approach of the Welsh Assembly Government to the economy should have become obvious last year when, during the Welsh Labour leadership campaign, Carwyn Jones announced that his primary economic policy was to “use the larger companies in Wales as a basis for attracting more business and more investment”. Whilst this statement was made prior to any consultation regarding the Economic Renewal Programme, this may begin to explain the zeal with which the Department of Economy and Transport seems to have interpreted the First Minister’s focus on large businesses as a sign to abandon general support for small businesses in Wales. Last week, this column discussed the abolition of financial support to the general small business population in Wales, a change of policy that the Welsh Assembly Government (WAG) has singularly failed to communicate properly to the business community in Wales. By focusing its new repayable grant system on six key sectors predominantly within high techno...

Over the last few weeks, we have seen S4C stumble from one crisis to another that has ended up, not surprisingly, with the resignation of its chief executive, Iona Jones. Whilst politicians, even within the slumber of the summer recess, are scrambling over each other to provide solutions for S4C’s current predicament, Ms Jones’ resignation raises far more questions than answers over the future of the television channel not only within a digital age, but at a time of austerity when it is nearly totally dependent on UK Government funding for its existence. At least one clear decision has been made which should bring some short-term stability to S4C, namely the appointment of Arwel Ellis Owen as interim chief executive. As an experienced and politically savvy media insider who has run his own successful business for a number of years, many are confident that Arwel will be able to steady the ship and more importantly, bolster the morale of staff at this critical time in the history ...