They also called on “the Welsh Government to establish a Welsh Development Bank as recognised in the report published by Professor Dylan Jones-Evans”.
This was another step on the road to ensure that SMEs, the engine room of the Welsh economy, are given the financial support they need to grow to create further wealth, jobs and prosperity for the nation.
Whilst there is some way to go, it is not as if the Welsh Government has been sitting idly by since I started the first ever review into access to finance for SMEs for the Welsh Government in 2013.
At the time, a major concern expressed by a number of stakeholders interviewed was the fact that there was very little regular discussion between the Welsh Government and the high street banks over this issue.
This is despite the fact that one is responsible for all business support for SMEs in Wales and the other is responsible for the majority of funding to the sector.
Whilst the review found some interaction on the ground between the banks and government-supported enterprise agencies, this was not widespread. In fact, one business support agency noted that banks did not engage early enough with them in terms of support for start-ups which, as research has shown, are the most likely to be turned down for loans and overdrafts.
Thankfully, the Welsh Government immediately launched a Welsh version of the Start Up Loans scheme that, at the time, was only operating in England. This has proven to be enormously successful and has filled a gap in finance provision for new firms that was previously missing.
Another key recommendation of the review was that the Welsh Government should examine this disconnect between the business support programmes it offers and the funding supplied by the banking community in Wales.
In particular, the Welsh Government should consider how it could work more closely with banks to ensure that they recognise the business support available to Welsh firms and by promoting its take-up, improve the quality of business proposals and information supplied to the banking sector.
With research suggesting that there is a supply side issue in terms of businesses being refused funding from a range of sources - 41 per cent of those thinking of starting a business and 26 per cent of new firms stated that they had been turned down for finance because they were not investor ready - something needed to be done to improve this situation.
It is therefore great news that the Welsh Government has now launched a new pilot scheme, in partnership with Nat West Bank, which aims to increase the number of Welsh start-ups that get access to the funding and support they need to grow.
Under this innovative new programme - the first of its kind anywhere in the UK - businesses up to two years old that do not meet the requirements for funding from either Nat West or Finance Wales will now be referred to Business Wales (the business support arm of the Welsh Government) for additional help and advice to improve their chances of securing the funding they need.
Running initially for 12 months, this pilot will ensure that if a customer or potential customer approaches either funding organisation for finance and they are not able to help, they will passed on to Business Wales for further advice and support.
However, with only NatWest taking part in this pilot programme, I would hope that the other high street banks such as HSBC, Lloyds, Barclays and Santander, will also decide to participate if it proves successful and thus ensure that any business that they turn down for a loan is given the right support to reapply for the funding they need from either traditional or alternative sources of finance.
With both the private and public sector understanding their role and contribution to the wider financial ecosystem in Wales, this could be the beginning of an approach that succeeds in overcoming some of the key barriers in getting funding to SMEs.
Certainly, if this partnership approach leads to more entrepreneurs securing the loans and other investments they need to grow, it can only be good news for the Welsh economy.