Is Wales an entrepreneurial nation? That is the question that some still ask when it comes to assessing the growth of the economy over the last two decades.
For me, the answer is an overwhelming yes, especially when we see the performance of those businesses that make the list of the fastest growing companies in Wales every year.
In fact, since the project was established in 1999, the 577 firms that have appeared on the nineteen lists have been estimated to have created 38,000 jobs and to generate an estimated £20 billion of additional turnover annually, much of which is spent in their local area.
That is an incredible achievement given that this growth occurs across all sizes of businesses, across all sectors and, more importantly, across all parts of Wales.
Indeed, the Wales Fast Growth 50 is yet again a celebration of the best that Wales has to offer and we should all be proud of the achievements of the fifty firms which are the fastest growing firms in Wales in 2017.
During the last nineteen years, the Fast Growth 50 lists have shown the impact that a small group of firms can have on both wealth and job creation across the Welsh economy.
In 2016, this year’s list generated a collective turnover of £433 million and employed three thousand people.
More importantly, they generated an additional £268 million in turnover during the period 2014-2016 at an average growth rate of 163 per cent. These firms also created 1,500 new jobs, demonstrating their continuing importance across the Welsh economy.
The average age of a fast-growing Welsh firm is eleven years old. Whilst fifteen firms are new (aged five years or less), the oldest firm is Cardiff-based construction business Jistcourt, which was established in 1980.
Eleven firms have a turnover of more than £10 million with the largest being Trade Centre Wales, with sales in 2016 of £106 million. They have also created 220 jobs between 2014 and 2016. Other major job creators over this period are two other consumer and retail firms namely Tiger Cardiff (194 jobs) and the taxi firm Veezu (127 jobs). In fact, there are ten consumer and retail companies on this year’s list including the fastest growing firm in North Wales – the Tir Prince Leisure Group.
The largest sector, yet again, is business to business services with twelve firms. Construction and building services continues to be prominent with nine companies listed (including Conwy-based Brenig Construction) and there are six professional and financial firms and three manufacturing businesses. What is of particular interest is that there are ten creative and knowledge-based firms, the highest number ever, which shows the increasing importance of businesses operating in new emerging sectors for the Welsh economy.
Only seven companies have more than 25 per cent of their turnover generated from international markets, and the Welsh and UK Governments need to do more to ensure that our fastest growing firms are able to export both goods and services to international markets.
Fast growing firms were to be found in only thirteen Welsh counties, the lowest number since the list began in 1999. Cardiff remains the main centre for fast growing firms in Wales with eighteen firms being based in the capital city, an increase on 2016. In fact, the Cardiff Capital region has more than two thirds of all firms on this year’s list.
Other hotspots include Bridgend (six firms), Caerphilly (four firms) and Neath Port Talbot (four firms). The other two cities in Wales (Newport and Swansea) have three fast growth firms each. In North Wales, there were only four growth firms, the lowest since the listings started with none located in either Anglesey or Flintshire.
Finally, congratulations to Aerfin for becoming the first business to win the fastest growing firm award twice in succession at last week’s Fast Growth 50 gala dinner. They, and the other forty nine companies on this year’s list, have again demonstrated the diversity and variety of fast growing businesses across Wales and are shining examples of entrepreneurship and innovation in the Welsh economy.