Supporting Local Business

Foundational Economy

The Foundational Economy makes a substantial contribution to GVA in Wales. The Centre for Research on Socio-Cultural Change estimated that that the foundational economy accounts for approximately four jobs in every ten and approximately £1 in every £3 spent by households in Wales and Caerphilly County Borough is no exception.

These sectors of the non-tradeable economy act as critical pillars for job creation and stability, and for the employment of non-migrating graduates.

Proposed Interventions

In response, the Local Investment Plan proposes interventions that will:

  • Provide grant support for SME within the Foundational Economy to expand and grow.
  • Provide grant for new start-up businesses in the Foundational Economy.

Tourism (Leisure and Hospitality sector)

Tourism provides opportunities to rebuild a key industry to the economy following the significant detrimental impact of the pandemic.

As well as supporting existing, and the development of tourism events that offer local opportunities in relation to targeted and niche markets, there is also scope to grow an integrated approach to the tourism offer, aimed at deriving higher levels of economic impact, developing supply chains and inter-dependencies across the CCR.

New innovation in relation to food and travel tech has the potential to create value in relation to export capacity and ensure that the CCR and Caerphilly are able to play a more active role with Department for International Trade and Trade and Invest Wales Green.

Proposed Interventions

In response, the Local Investment Plan proposes interventions that will:

  • Provide grant support for SME within the Foundational Economy to expand and grow.
  • Enable the Council to work with Business Wales to gather market information and develop a ‘experience / tastebud tourism’ (result of Hackathon). A marketing drive to increase 'tastebud tourism' within the brough will be carried out including improved websites and interaction with potential customers.
  • Provide support to develop a tailored export strategy.
  • Provide Grants to support International Trade within the county borough.

Sustainability of local businesses/enterprises

Similar to the pattern across Wales and the UK, Caerphilly business demography is dominated by micro businesses (those employing fewer than 10 people) at 94.3% of total enterprises, with only 3.5% classed as small (10-49 employees) and 1.1% classed as medium (50-250 employees).

The region has a higher business birth rate (12.6%) compared with Wales (11.4%) and GB (11.9%) but conversely also has a higher death rate at 11.2% (Wales 9.8% and GB 10.6%). (Source: Office for National Statistics November 2021). 3.10.

Many larger firms began as individual sole traders, so gearing support to them is vital to strengthening the resilience of the area. (Source: “Transforming the Valleys” December 2020, Bevan Foundation). There is evidently a clear challenge to provide an environment in which smaller businesses can grow and become sustainable in the longer term.

Proposed Interventions

In response, the Local Investment Plan proposes interventions that will:

  • Provide grant support for SMEs to expand and grow.
  • Provide grant for new start-ups.

Availability of Business Premises

A lack of available and suitable infrastructure is a challenge to businesses reaching their full potential.

Research commissioned by the CCR Regional Cabinet, and the Welsh Government has illustrated that good quality sites for employment are in short supply and there is now a very limited availability of all sizes and types of speculative, ready to occupy premises ranging from space for small businesses and start-ups right through to large scale manufacturing projects. (Source: “CCR City Deal Strategic Business Plan Wider Investment Fund 2020-2025”).

Proposed Interventions

In response, the Local Investment Plan proposes interventions that will:

  • Unlock land for new development for a range of businesses.
  • Facilitate delivery of new start-up units.

Low levels of R&D Investment

The CCR has a highly regarded science base through its universities, collaboratively providing a strong foundation for developing new technologies and applications. However, investment in R&D has remained comparatively low in the region, with Innovate UK expenditure in Wales measured at less than a third of the average UK per head figure.

Proposed Interventions

In response, the Local Investment Plan via the CCR proposes interventions that will:

  • Introduce companies in the clusters and supply chains to innovation and productivity indicatives – growing capability and leadership skills as well as pragmatic issues around energy security.
  • Attract further businesses to the region that are innovative and aligned with priority clusters to grow the high value jobs base and increase regional productivity and competitiveness.
  • Increase the number of knowledge-based businesses in the region that create high wage jobs that are key to growing and spreading prosperity.
  • Establish a series of assured academies across the region supported by FE and clusters in the region, supporting social mobility and ‘widening access’ and contributing to the employer-led skills landscape.

Green Jobs Growth

In March 2021 Senedd Cymru approved a net zero target for 2050 with interim targets for 2030 (63%) and 2040 (89%). These progressive targets will provide new opportunities for innovation and economic activity with initiatives to support decarbonisation, energy efficiency and the green economy.

Proposed Interventions

In response, the Local Investment Plan via the CCR proposes interventions that will:

  • Provide grant support to expand and grow green technology and improve efficiency to move to a zero-carbon economy.