New businesses are the lifeblood of all growing economies, creating innovation, vitality and, most importantly, jobs in local communities.
For example, research from the Kauffman Foundation in the USA shows that start-ups are responsible for almost all new net jobs and have created an average of 1.5 million jobs every year in America during the past three decades.
However, many of those who spot the opportunity and take the risks to launch a new product or service are often the unsung heroes of the business community.
That is why, in partnership with Liz Brookes of Grapevine Events, I launched the Wales Start-Up Awards this week to finally acknowledge the achievements of these entrepreneurial individuals, their new ventures and their contribution to the Welsh economy.
Well, having managed the Wales Fast Growth 50 project for the past 18 years, I realised that in addition to supporting fast growing businesses, there was also a need to specifically recognise those new Welsh businesses that are making such an impact in terms of employment and wealth
creation.
More importantly, there was nothing out there that did this in the way that the Wales Start-Up Awards will achieve and by applying the highly successful model we have developed for the Cardiff Business Awards, we can deliver something special to celebrate this important sector of the Welsh economy.
What we are particularly proud of is that the vast majority of those supporting the awards are successful entrepreneurs who were once involved in start-ups themselves and who now want to give something back by sponsoring a category that is relevant to their business.
Certainly, new businesses are having an increased impact on the economy and during the past five years there has been a growth in those taking the plunge in setting up their ventures across Wales.
According to official statistics, there has been an increase of 51% in the number of new businesses in Wales with 11,345 start-ups created in 2014. This was the fourth best performance of any region in the UK after London, the north-east of England and the East Midlands.
As discussed previously, there are a number of reasons why people choose to work for themselves rather than being an employee for another organisation.
But there have also been a range of other environmental factors that have encouraged people to take the plunge into establishing a new venture.
First of all, there is now unprecedented UK and Welsh Government support for those wishing to start a business.
These range from specific services such as the Accelerated Growth Programme in Wales – which supports high growth start-ups – to the Start-Up Loan programme that provides small amounts of funding to help people establish a new firm.
There has also been a growth in non-government support for new businesses. This includes a variety of new types of alternative finance form the private sector that has poured hundreds of millions of pounds into funding entrepreneurs and their ideas.
Incubators and co-working spaces are popping up all over Wales and range from affordable offices from the likes of IndyCube to more sophisticated offerings from organisations such as Welsh ICE, the Alacrity Foundation, Swansea TechHub and TecMarina.
Even banks are getting in on the act with NatWest supporting a range of accelerators, known as Entrepreneurial Spark, in cities across the UK including Cardiff.
Indeed, other large organisations have realised that they cannot do everything in-house and are embarking on a process of open innovation where they are supporting the development of new firms to come up with solutions for the problems they cannot solve themselves.
In the past three years, John Lewis has had its own accelerator to fast-track the growth of start-up companies in the retail space and to help it innovate and improve its operations. Recently, tech giant Hewlett Packard announced the creation of an investment arm – HP Tech ventures – which is aimed at funding start-ups in emerging technologies such as virtual reality, the Internet of Things, and artificial intelligence.
Even highly regulated industries where new businesses are rarely welcomed have been encouraged to establish new ways of working.
For example, UK start-ups looking to disrupt the financial sector are being called upon to apply for the Financial Conduct Authority’s new financial technology accelerator. This will allow young businesses that aren’t yet regulated to test and trial innovative new technology, services and business models without incurring penalties from the regulator.
But more importantly, new business start-ups are everywhere.
More women are starting their own businesses, more young people are rejecting the rat race for entrepreneurship, and even so-called “baby boomers” are returning to work in their 60s through starting their own firm.
Given this, and the entrepreneurial vitality that is growing across every part of this nation, it is only right that an event such as the Wales Start-Up Awards will, for the very first time, specifically celebrate the achievements of these opportunistic individuals who, through their hard work, perseverance and even a bit of luck, are making a real and lasting effect on the Welsh economy.