Cabinet paper: Business Support Review

The Cabinet is asked to: 

• Note the Business Support Review report at Annex B and the terms of reference at Annex C.
• Endorse the summary recommendations at paragraph 13.

1. This paper provides an update on the internal Business Support Review (BSR), offering an assessment of business support provision to support the economic mission and the First Minister's 4 priorities. The review draws on both internal and external analysis, desk-based research, and stakeholder engagement. It identifies strengths in the current system, including adaptability, partnership working, and positive impact on business growth and innovation. However, it also highlights areas for improvement and puts forward a series of recommendations. The BSR and its recommendations are aligned with, and support, the internal review of the circular economy strategy (CAB(25-26)10).

2. The review assesses the current landscape, outlining both the strengths and limitations of the existing provision, and identifies opportunities for practical action to support our priorities. It complements our work on Industry Wales, the Centre for Digital Public Services and other ALBs. The work is designed to be timely and proportionate, focusing on areas where meaningful improvements can be made efficiently. It is underpinned and informed by evidence, stakeholder feedback and insights from previous internal and external studies. It also synthesises a number of short-term reviews undertaken by the Welsh Government in 2025 on SME Productivity and Artificial Intelligence, the Federation of Small Business’s Report on the Business Support Landscape in Wales and the 2024 OECD report ‘Regional Governance and Public Investment in Wales’.

3. It is not a review of all business support services across Welsh Government. A more comprehensive long-term analysis would require more external input, time and resources than this internal review was designed to undertake, but it does consider what steps we can take now to support future in-depth evaluations of how well services align with economic strategy and identify the best options for improvement. The Business Support Review report is provided at Annex B, alongside the terms of reference at Annex C.

4. Our economic mission sets out 4 priorities:

1. a just transition and green prosperity
2. a platform for young people, fair work, skills and success
3. stronger partnerships for stronger regions and the everyday economy
4. investing for growth.

It is underpinned by a range of policy intentions focussed on creating the conditions and opportunities to deliver on the 4 priorities along with a broad spectrum of support services tailored to the needs of Welsh businesses and communities, including:

• Information, guidance and advice via Business Wales and Sell2Wales.
• Access to finance mainly through the Development Bank of Wales, and the Economy Futures Fund.
• Support for digitalisation, R&D and the adoption of new technologies.
• Export and international support services connecting businesses to global opportunities.
• Provide sector-specific programmes for food, creative, tourism, construction and the foundational economy.
• Support for skills and innovation.

5. The budget for business support provision within the Welsh Government has diminished over the last few years, not least due to our exit from the EU and access to European funding.

6. At its heart, our business support provision is focused on increasing employment and creating quality jobs, particularly in areas facing ongoing economic challenges. We are also dedicated to narrowing the productivity gap with the rest of the UK by investing in innovation and developing workforce skills. Central to these efforts is our ‘more jobs’ priority, which demonstrates our commitment to expanding employment opportunities across Wales.

7. Several key policies and programmes contribute to supporting the ‘more jobs’ agenda such as the Development Bank of Wales, Business Wales, the Economy Futures Fund, Visit Wales and Farming Connect. While programmes including Freeports and Investment Zones, are designed to unlock long-term employment potential, support the transition to a net-zero economy and create the conditions for future job growth.

8. Wales has a complex business support ecosystem involving partners at national, regional, local and private sector levels. UK government policy, initiatives and funding, often designed with England in mind, add further complexity by not specifically addressing the Welsh context.

9. he plethora of support available has led to a fragmented and complex business support environment. Rather than a single, unified system with agreed performance measures, businesses and organisations now navigate an array of separate initiatives. This makes it harder to align programmes, increases duplication, while making it harder to ensure that support reaches those most in need.

10. In summary, business support in Wales is closely aligned with the Welsh Government’s economic priorities and has demonstrated significant adaptability in response to challenges such as Brexit and the Covid-19 pandemic. The adoption of hybrid delivery models during the pandemic improved the reach and efficiency of business support services. Retaining these models is recommended due to their positive impact. Business Wales is recognised as a trusted one-stop shop, with a strong brand and high accessibility for new and hard-to-reach entrepreneurs. Client satisfaction is high (84% overall), especially regarding the expertise and impartiality of advisers.

11. Most of the reviewed programmes exceeded their quantitative targets, particularly for innovation, job creation and safeguarding jobs. However, the methodology for defining job creation and collating related data are inconsistent. This inconsistency limits the ability to assess value for money and return on investment. Where data is available, the results are encouraging with Business Wales generating an estimated up to £18 in gross value added (GVA) for every £1 invested, Export Support Programmes yielded a ratio of gross export value to direct programme costs of 20.5 (£20 per £1 spent) and the Helix food and drink programme reporting up to £15 per £1.

12. The review notes that some Welsh SMEs often struggle to access finance and may lag behind larger firms in innovation. Access to finance remains a major challenge, with application processes described as complicated and time-consuming. Boosting innovation and improving workforce skills emerged as critical strategies for closing the productivity gap in Wales.

13. The report makes a number of recommendations detailed in section 8 of the BSR report (at Annex B). In summary:

1. Announce a round of seminars, between now and the end of this Senedd term, bringing together the major business providers to clarify and simplify the range of support, removing duplication and identifying any gaps in provision
2. Adopt a “no wrong door approach” to increase accessibility by creating an online hub using technological advances in artificial intelligence (AI), building on Business Wales, Trade and Invest and Visit Wales portals
3. Provide a dedicated point of contact to support major investors at the Investment Summit and for all significant new investors in Wales
4. Enhance our dedicated account management function
5. Improve data collection an d reporting across all programmes and establish a unified performance framework for all interventions
6. Consider adopting a two-tier performance model for job creation and safeguarding
7. Continue to enhance those actions already in place and further consider how best to work with the UK Government to avoid gaps and duplication in service provision
8. Strengthen dedicated support for new businesses working in Welsh
9. Expand digital and hybrid delivery models to improve reach and efficiency
10. Continue to strengthen collaboration between Business Wales, Creative Wales, Visit Wales, local authorities, the Development Bank of Wales and third sector organisations
11. Develop a clear pathway and dedicated support for SMEs to adopt AI
12. Provide targeted support for specific sectors such as energy (particularly FLOW), the defence sector and nuclear sector
13. Make fuller use of the Business Wales brand and consider aligning Welsh Government business support for businesses based in Wales under this banner
14. Consider how to simplify and develop specific sectoral support based on a range of evidence and sector intelligence
15. Undertake a full review of business support delivery mechanisms
16. Use robust data and performance measures to inform future investment and delivery decisions
17. Consideration should be given to developing a narrower focus of key priorities in order to better concentrate resources
18. Address physical (e.g. property), energy and digital infrastructure gaps, especially in rural areas
19. Make support more inclusive for rural areas and underrepresented groups and increase in-person assistance where digital access is limited
20. Develop a strategic approach to rapid response support for future crises and help businesses plan for uncertainty
21. Improve coordination between the Welsh Government, local authorities and support organisations
22. Co-design a single, overarching national business support strategy
23. Integrate business support more closely with skills and employability services

14. Clarifying and simplifying the range of support, removing duplication and identifying any gaps in provision, will result in a refreshed and customised approach to businesses in Wales.

15. The approach suggested in the review is closely aligned with the Economic Mission and the Well-being of Future Generations Act, helping to build a more productive, resilient and sustainable economy.

16. A communications plan will be developed to ensure that the improvements are presented clearly to businesses and the wider public. An oral statement is scheduled for 18 November and publication of the review.

The Cabinet is asked to:

• Note the Business Support Review report at Annex B and the terms of reference at Annex C.
• Endorse the summary recommendations at paragraph 13.

Rebecca Evans MS
Cabinet Secretary for Economy, Energy & Planning
October 2025