West Wales and the Valleys - Objective 1 Chapter 4, Section 1   Chapter 4 - Priorities and measures   Section 1 - Business Development & Enterprise   Description and Rationale   The strategic objectives set for the west Wales and the Valleys area can be achieved through structuring the programme around the central themes of supporting businesses and developing people and communities in the region. The overall strategy is one of partnership for increasing prosperity across the whole of Wales and builds upon the foundations established by recent policy documents in Wales. In particular it develops the approach set out in "Pathway to Prosperity: a new economic agenda for Wales" published in July 1998.   The Programme Strategy recognises the key role that sustainable business development plays in creating jobs, enhancing competitiveness and generating more wealth across the region. The bedrock of sustainable business development is the promotion and proactive support of entrepreneurship and innovation, leading to a strong and internationally competitive business sector. The strategy also recognises the role of foreign direct investment and the opportunities this provides for the creation of strong supply chain links, as well as the significant contribution to raising GDP.   The overarching framework and the activities created and funded under this Section are intended to be robust in order to endure beyond the lifetime of the Structural Fund Programme. However, the framework will not exclude the possibility of one-off, innovative, single projects that have the potential of making a significant impact on the birth and survival rates of businesses in both the private sector and the broader social economy. Similarly, there should be scope for supporting key thematic sectors with potential for growth.   A reference to State Aids will be inserted once the Welsh Office/NAW consultancy study is complete   Objectives   This priority has 3 main targets to be achieved by 2006: to increase the birth rate of micro companies.   to increase the survival rate of SMEs.   to create more new high-growth ventures each year In order to achieve the targets and resultant output, the following mutually reinforcing measures provide a means of ensuring an integrated and coherent focus to the specific programmes to be supported in the Section.   The measures are:   Measure 1   Financial support for the establishment of new ventures and the development of existing businesses   Measure 2   Support to encourage and develop entrepreneurship   Measure 3   Support to encourage and develop innovation and R&D   Measure 4   Improving skills levels within businesses   Measure 5   Support for the creation and development of business opportunities in the social economy   Measure 6   Support for the information society   Measure 7   Development of key growth sectors   Measure 1: Financial support for the establishment of new ventures and the development of existing businesses   Description and Rationale   The essential factor in establishing or growing a business is the quality and commitment of the people involved. However, more can be achieved by such individuals, and more quickly, given an appropriately supportive environment. Such support can come in different guises, but the most basic of these is finance.   Overall, the funds created would be promoted so as to demonstrate the region's willingness to support start-up ventures, encourage the growth of indigenous SMEs and to attract new SMEs to the area. Funds should be established, wherever possible, on an evergreen basis, having no pre-determined life-span, and capable therefore of continuing, without further public support into perpetuity. Emphasis will also be placed on building on and improving existing domestic programmes with Business Connect for example taking a lead strategic role.   This measure seeks to ensure that Welsh SMEs with the ability and drive to grow and be successful, including community-based businesses, have access to appropriate finance from the earliest stages of a business idea through to the expansion of a viable business. Specifically it addresses: Lack of access to investment capital.   Lack of access to a comprehensive and targeted broad range of grants and loans   Specific needs of SMEs in rural areas   Inability to expand beyond initial scale of business. Institutional equity capital is limited in the region with available funds invested in larger amounts and generally into larger companies than envisaged under this Measure   Support for innovative enterprises or projects which may not become profitable in the period for which loan finance is normally available. Development of new ventures / SMEs and development of sources of venture capital for high risk projects needs special attention in Wales   Incomplete and inexperienced management teams. Historically projects have not been funded in the region because of venture capitalist concerns over the quality of the management teams within the local businesses   High failure rates   Size of investment does not justify commercial due diligence   Market entry costs   Lack of acceptable exit routes for investors   Many of the SMEs in the region have traditionally used overdraft finance which is not a satisfactory vehicle for growth Business development must be sustainable and where possible protect or enhance the natural environment and heritage of the region, while using these features to promote adding value. Incentives to promote environmental management will be built into assistance packages where appropriate.   Objectives to improve the survival rate of businesses   to provide capital to investment funds (whether providing loan or equity) operating where market failure exists, including but not limited to high growth and technology based opportunities   to support the matching of private investors, whether institutional or business angels   to encourage corporate venturing   to encourage the establishment of new ventures within the context of further and higher education   to subsidise due diligence costs and management costs of the funds   support to increase competitiveness through export activity Scope support for an additional supply of finance, grants, loans and venture capital to Welsh SMEs with at least 50% being provided by the private sector. This support to be available to expand the activities of existing funds and/or to establish new ones   support for the provision of support services aimed at increasing deal flow for the new funds and subsidising the due diligence costs that would otherwise be recharged to SMEs (As a contribution to the full costs of managing funds, including: Fund preparatory work in bringing together the funds; Staffing, accommodation and operating costs of the fund managers; and promotion of the fund to the regional SME communities)   support for the private sector for new investment   broadest possible range of grants, loans and financial support including entrepreneurship funds and know how funds.   support to direct appropriate firms seeking investment to locate into the region   assistance to improve the marketing through research, consultancy support, information and planning on new market opportunities, provision of common marketing services and help for joint ventures with other businesses Outputs and Impact   This measure will aim to deliver :   Outputs Number of jobs created or safeguarded over the period to 2006   Numbers of SMEs supported under the schemes Impact Investments placed in SMEs in the region   Indirect investment levered in   Stimulate an additional private sector business investment   The following indicators will be monitored:   New marketing schemes   Increased number of new SMEs and improved survival rate   Numbers of SMEs involved in export activity   Improved marketing and business planning   Value of additional export activity from firms in the programme area. Measure 2: Support to Encourage and Develop Entrepreneurship   Description and rationale   Entrepreneurship should be promoted and co-ordinated through a focused and integrated approach which will stimulate demand, drawing on the combined efforts and talents of all the stakeholders involved in business development, and including actors from the private, public and voluntary sectors. Whilst many of the priorities regarding entrepreneurship are intertwined with business and skill development, there remains a need to build a more entrepreneurial culture in Wales.   It is therefore proposed that a number of specific activities are undertaken to establish a greater culture of entrepreneurship within the region. These should aim at raising the profile of entrepreneurship at all levels of society in Wales and the measure addresses the need to promote and develop entrepreneurship as an important element in building a successful economy in the region. The aim is also to encourage groups under-represented as entrepreneurs e.g. Welsh Speakers, the disabled and women.   This measure will aim to increase the business birth rate and accessing business support for new and existing SMEs, via the Business Connect Wales network, which is expected to take a lead role. The measure will also build upon and improve existing domestic programmes.   The Entrepreneurship Action Plan for Wales will seek to provide the framework for the development of a focused package of integrated activities. However, this measure recognises that the creation of an entrepreneurial culture starts from the earliest stages of education. This measure will seek to encourage interest in entrepreneurship through curriculum development and education and business partnership initiatives.   This culture must also permeate businesses across all sectors in the region, both large and small. In the quest to encourage and support entrepreneurship the following issues have to be taken into account : a proportion of the target beneficiaries do not generally access the traditional business support framework   the quality of support has to be high to appeal to the target recipient   support is often mentor-based with close links to other assistance, including capital investment, innovation and skills development   new businesses created need to be 'nurtured' for a period of up to two years. Objectives to change attitudes towards and promote entrepreneurial behaviour, of all stake holders at all levels and especially amongst young people to cope with change and to maximise economic potential   broaden the National Curriculum to ensure that entrepreneurial experience are and entitlement for all children and young people   to provide a diverse range of on-going quality pre-start and start-up support which will promote equality of access for all sectors and which will promote business birth rate and increase the quality of business start-ups and survival   to provide proactive support for developing entrepreneurial behaviour amongst existing businesses, to increase competitiveness, develop self-awareness, self confidence and self-belief   to increase the level of co-operation among businesses and other stakeholders at a local, national and international level Scope support for the establishment of a number of high profile initiatives, in partnership with the private sector, that encourage an holistic approach to the development of entrepreneurship and which will result in a change in attitude and behaviour   support for the targeting of potential entrepreneurs that can be assisted to establish and grow new ventures   support for the promotion of a strong brand image to differentiate from traditional business support mechanisms   support for schemes to provide role models/mentors which involve experienced entrepreneurs, with a successful track record,   support to establish and maintain a wide network of growth businesses and referral agents   support for measures to raise the profile, status and understanding of entrepreneurship among learners in formal education   promote the creative use of media to support all aspects of entrepreneurship   promote benchmarking and best practice through training and mentoring   promote the development of appropriate funding structures for MBO /MBI and for groups such as the economically inactive and women wishing to start a business Outputs and Impact   This measure will aim to deliver :   Outputs support for growing numbers of entrepreneurs each year resulting in the creation of:   new high-growth businesses over the period   high quality sustainable jobs Impact changes in attitudes towards entrepreneurship within Wales, especially in the educational sector   an increase in pre-start activities, including those targeted at specific groups   the creation of a public/private partnership whereby upwards of 30% financial support is obtained from the private sector The following indicators will be monitored: an increase in levels of entrepreneurial behaviour in businesses in Wales   an increase in the number of schools participating in entrepreneurship activities   a target that by 2006, all FE and HE students will have attended an awareness event in entrepreneurship   increase in business start-ups, to include an increase amongst women, Welsh speakers and other specific groups   an increase in growth-orientated SMEs and the creation of new jobs   an increase in jobs in higher value added sectors. Measure 3: Support to encourage and develop Innovation & R and D   Description and Rationale   In the medium to long term, sustained competitiveness by regions in the global economy will depend on technological or innovation-based strengths. These include the ability to develop new products, to access successfully new markets, to apply new technology, to incorporate best practice in the management of enterprises and to develop skill levels across the full spectrum of the labour force.   Successful regions will be those that adopt a strategic approach to innovation and technology transfer and R & D and integrate the abilities of the public sector expertise with the needs of innovative growing firms. Expertise of managers of SMEs in how to manage the introduction of new technology and innovation needs to be developed.   This priority should build upon existing domestic programmes such as the Regional Technology Plan, which has the aim of improving the innovation and technology performance of the Welsh economy.   Objective   The overall aim is to create a culture which encourages and values innovation and thereby supports the growth and increased competitiveness of businesses in Wales through the introduction and application of new technologies, development of new products and processes and access to new markets.   In particular to:- to create and grow more indigenous technology based businesses thereby creating value added jobs   to ensure SMEs access and implement global innovation and technologies   to develop the value added service sector   to develop technologies for sustainability   to create incubator and innovation centres and Science parks facilities to encourage the growth of technology based companies   to provide a comprehensive innovation and technology support infrastructure for business   embed a culture of innovation through high profile new programmes and awareness raising activities   increase competitiveness through improved linkages between the academic base (HE & FE Sector) and businesses and provide incentives for academic institutions to collaborate with industry Scope development of supply chains and networks building on the success of various sectoral and regional networks including supplier associations, technology fora, innovation networks and export fora   increase collaboration between major international companies inward investors, indigenous companies and research institutions   promote sectoral clusters. To facilitate clusters in international growth market sectors such as environmental goods and services, multimedia, cultural industries, biotechnology, food, optoelectronics and new emerging areas   formation of new technology based businesses including spin offs from large companies and academic institutions.   Increase the level of science, engineering and technology graduate employment in SMEs including support for more flexible schemes to complement existing programmes   Support and advice to enable organisations in Wales access funding for innovation, R&TD including UK Government and European sources including SMART Wales, SPUR and the EC's Fifth Framework programme   high quality business and innovation support. Continue to support and further develop, WILO, Business Connect, Innovation & Technology Counsellors network, Know-How Wales into an integrated all Wales Innovation and Technology Partnership   provide support to SMEs to access technical expertise and contract research building on the successful HELP Wales, Technology Collaboration and Implementation in programmes   develop new approaches to meet the differing innovation and technology requirements of the higher value added service sector   develop an improved physical infrastructure of incubator and innovation centres, science parks and research resource facilities   support the enhancement of regional research facilities especially promoting interdisciplinar y research and the deliver y of resources to scientists working on new technologies   develop a Technology Transfer and Implementation programme to support companies in the identification, acquisition and exploitation of the world's best R&D, new technologies and innovation techniques   education and training for innovation and technology. Development of innovation management programmes for Welsh SMEs   establish a mentoring programme for technology based businesses   develop a programme of market intelligence and exporting assistance to enable technology based organisations to trade internationally   develop and implement technologies for sustainability including energy efficiency, renewables, waste minimisation, recycling and new environmental technologies Outputs new technology based businesses created   More SMEs supported in the introduction/implementation of new technologies   R&TD expenditure in Wales, as a percentage of GDP, to increase by 2006   new products/processes under development   increase in turnover from new products/processes   new linkages formed between HE/FE and businesses in Wales   new sectoral/technology clusters supported   new linkages between SMEs and large firms   more businesses supported in gaining access to new markets   an increase in science, engineering and technology graduates employed by SMEs   more businesses adopting environmentally friendly technologies (Impacts to be added)   Measure 4: Improving Skill Levels within Businesses   Description and Rationale   This measure seeks to increase the productivity, skills levels and adaptability of the workforce and in particular enhance management development. As the Pathways to Prosperity document suggests, the future of the Welsh economy (and that of its enterprises) lies in the skills and talents of its people. However, the level of skills in the workforce continues to lag behind competitor countries. In particular, there needs to be greater coherence between Wales' education and training providers, and a greater emphasis on the needs of employers and the aspirations of the individual.   In particular, education and training should be more focused to deliver the skills needed by the Welsh economy and be reflective of the needs of smaller firms. Currently, the formality of publicly supported training results in a neglect of informal provision that is usually crucial in smaller firms. Training must also be sympathetic with owners' definitions of training needs, which will mean that training strategies should be closely linked to the needs of the firm. Employers must be encouraged to recognise the potential in all their staff regardless of gender, ethnicity or disability. In particular, emphasis must be placed on building upon demand driven solutions, and it is crucial to gauge the views of owners and managers on training, especially in devising solutions to meet small firm needs.   Objectives to assist the protection and creation of jobs by ensuring all employees have the skills required for their future development   to improve business performance and increase competitiveness through having fully and appropriately skilled managers and employees.   to ensure that the development of management skills and information technology skills are a priority among businesses in the region   to encourage and assist firms to develop their own training strategy   to provide relevant, tailored training delivered in a flexible and innovative manner   to affirm the importance of national benchmarking and internationally recognised management qualifications   to provide specific skills training in marketing, particularly internationalisation and exporting, which is seen as vital to improving the competitiveness of firms within the region Scope carry out initiatives which seek to change employer attitudes in key aspects of HRD: e.g. management development; and work organisation;   develop programmes which improve management competence in the workforce and address the shortage of higher level graduate and management skills for SMEs;   upgrade the capacity of SMEs to utilise ICT to compete and grow eg basic IT skills, harness IT skills in key specialist sectors, etc   develop programmes to provide training that will attract knowledge based industries   develop actions to tackle gender imbalance towards men in advanced ICT and support occupations   develop programmes to foster the use of Welsh language/bi/lingual materials and ICT applications   carry out initiatives to increase innovation in Wales through the involvement of artists in the creative processes in business   develop programmes in the areas of education and training for small business ownership; entrepreneurial education; continuing small business education; small business awareness education   develop programmes which offer skills support for the development of potential women entrepreneurs   Provide support for employer-led training initiatives that upgrade workplace skills   Provide support for programmes equipping new workers with essential workplace skills (eg Modern Apprenticeships)   develop programmes which address the management training needs of businesses, especially in the areas of marketing and internationalisation   develop programmes which address the issues of Environmental Management Systems, Waste Minimisation, Energy Efficiency and Green Transport Plans Outputs   This measure will aim to deliver : new programmes for Management Development (in the region by FE/HE etc.)   more Welsh SMEs recruit graduate level staff; higher levels of Welsh SMEs workforce are at graduate level;   local, regional, or sectoral strategies to foster entrepreneurship supported;   role models identified and involved in strategies.   people secure vocational skills qualifications (Impacts to be added)   Measure 5: Support for the creation and development of businesses in the Social Economy   Rationale and description   The social economy is the third economic sector - alongside the public and private sectors - and a growing contributor to the development of the economy. Rooted in mutuality, not-for-profit organisations in the social economy combine economic activities with a social or ethical purpose. They contribute directly to employment and economic growth, and provide services of social or environmental significance.   The defining characteristics of social economy organisations include: Developing people as well as the business, fostering self-reliance and self confidence, and developing skills and abilities;   creating valuable services that may not be provided by private companies or not affordable by public sector ;   turning energy and concern of community into action and resources, and creating community-owned assets;   keeping economic activity local and channels benefits to local community, and increasing chance of long term success by securing community support;   open membership (to employees / community), and democratic accountability to members;   profit belongs to members (employees or community) - profits may be distributed for social purposes. This sector is important in economic terms because active promotion of and participation in its activities can lead to a higher skills base, new employment opportunities, and improved and more local services. Social economy organisations can be businesses in their own right; they are also vehicles for community development, and in turn new enterprises can be created as a result of community development. Social economy organisations are key players in marginalised communities, and are small but significant SMEs in their own right. They are often best placed to be direct providers of a range of services, involving local people in providing local solutions.   The growth of the social economy will be strongly supported. There is a need to recognise and raise awareness about the contribution that social economy organisations are making to local communities; to stimulate and encourage their creation and expansion; and to increase their access to advice, financial assistance and institutions; and to connect their activities with mainstream agendas.   Objectives To develop new businesses within the social economy;   To encourage sustainable growth in employment and income among businesses within the social economy   To provide business advice for social economy organisations that increase employment or provide economic benefits;   To provide access to risk/venture capital, loan guarantees, start-up grants, pump-priming and funding for organisational infrastructure. Scope Undertake social audits to identify potential for social economy developments;   enable new community businesses and enterprises to be established;   help existing organisations to expand and to improve efficiency and effectiveness;   provide new services to meet community and social needs;   meet the training and development needs of people involved in social economy organisations;   provide economic activity for people who are disadvantaged or excluded, and people in rural or isolated communities;   enable social economy organisations to purchase or acquire and maintain property, land, equipment or other assets that generate income, reduce overheads, increase sustainability, contribute to the achievement of their social objects;   encourage social economy enterprises to co-operate among themselves in order to improve the quality or variety of services they are able to offer, or the efficiency or effectiveness with which they are provided. Outputs   The following output indicators will be monitored during the programme:   increase in new social economy organisations employing paid and unpaid staff established in the region;   expansion of existing social economy organisations in the region;   increase in turnover of social economy organisations in the region;   Number of local people gaining employment;   Suggested measures of impact are: Better access to local services;   Increased opportunities for employment;   Resources and assets acquired, or transferred to social economy groups by other partners (e.g. contracts, assets, training);   Wealth generated by social economy groups, and wealth retained within the community;   New jobs created;   Additional safeguarded jobs;   New value added;   Additional value added safeguarded;   The creation and expansion of services which are not being provided by other sectors.   increased survival of social economy organisations measured by lower failure rate. Measure 6: Support for the Information Society   Description and Rationale   The Information Society (or Knowledge-Driven Economy) is an environment where the information and communication technologies are exploited to achieve greater economic and social prosperity. The development of a Knowledge-Driven Economy and the exploitation of the opportunities afforded by the Information Society are vital to the region's future prosperity.   Achieving a significant step-change in the take-up and exploitation of the new technologies can only be achieved by introducing programmes and initiatives which address the distinct areas of demand side measures to encourage the use of ICTs and supply side measures to ensure that the region has the capabilities to meet and support the increased demand.   Stimulating the demand for ICTs is only one element of the transition to an Information Society. The capacity to satisfy that increased demand via a strong indigenous supply side industry is also vital. There are three key drivers in improving the strength of the supply side - an effective existing supply industry, access to capital, and access to skills. Access to a supply of skilled ICT professionals is an essential element in a virtuous circle where skills attract investment that stimulates growth, which in turn attracts more skilled professionals. Attempts to increase the number of ICT professionals in the region will need to focus on encouraging and supporting women who are under-represented in the profession.   Objectives to encourage and exploit the opportunities offered by ICTs for indigenous industries   to create clusters of ICT capabilities.   to develop the overall institutional capabilities and mechanisms needed to derive maximum advantage from the opportunities available.   to enhance awareness-raising activities amongst SMEs, roll-out known best practices; and build effective business information networks   to enhance institutional capabilities to handle large-scale ICT-related initiatives and programmes.   to develop the Welsh multimedia industry and encourage the development of local content.   to stimulate demand by building local exemplars to demonstrate the benefits of the ICTs. Scope Initiation of major programmes, including e-commerce, of support for SMEs, based upon pro-active, in-house, advice aimed at helping them implement a range of technologies and applications which will improve competitiveness and employment opportunities.   Implementation of training programmes aimed at increasing the pool of business/ICT advisers.   Development of ICT expertise and support networks amongst SMEs.   Provision of "ICT Toolkits" to help SMEs adopt and exploit the technologies.   Implementation of projects designed to roll-out best practices in electronic trading/electronic commerce/ electronic document interchange.   Co-ordinating the deliver y of ICT training in order to ensure that training is tailored to the needs of SMEs - in terms of content, affordability and accessibility.   Introduction of sector-specific support networks and ICT initiatives, e.g. for the food, tourism and agricultural sectors, etc.   Programmes aimed at encouraging large companies and public sector organisations to collaborate and develop partnerships with the smaller firms in their supply chain and encourage them to adopt best practice with regard to ICT usage, e.g. via procurement /tendering strategies.   Initiatives and programmes which stimulate networking and collaboration between ICT/multimedia supply industries, and the development of clusters (virtual and real). Outputs Number of ICT/Multimedia supply/ support companies created   Number of people with formal ICT-related qualifications/accreditation   Number of remote workers   Number of Welsh Internet sites   Number of households with home computers and Internet access   Number of community organisations with ICT facilities   Percentage of local government services made available electronically   Increase in number of people receiving training via electronic distance-learning techniques.   Number of Welsh companies using more advanced ICT applications such as e-commerce, EDI, etc   Number of companies participating in formal ICT / business support programmes   Percentage of Welsh content in programming in film, television and multimedia   Number of companies participating in ICT training programmes   Number of accredited ICT/Business Advisers   Number of indigenous multimedia companies (Impacts to be added)   Measure 7: Development of Key Growth Sectors   Description and Rationale   The economy of the region is largely dominated by the public sector and a range of industries that are either in decline or are largely characterised by low productivity and low wages. There is a need to attract, secure and support industries in the region which provide higher wage, high value employment that contributes to raising GDP and promotes higher levels of exports. The whole range of business support will be available to as broad a cross section of the business community as possible, including the retail and service sectors. However there should be an additional emphasis on some key sectors. These key sectors will not in general be "picked" by the public sector, but be supported on the basis of solid research and clear evidence that they are growing forces within the region. This measure will seek to fund activities specific to the needs of growing industries not covered under other measures.   Both the Vade Mecum and regional and sectoral assessments have identified Arts and Culture and Tourism as Potential growth sectors and their potential is reflected in this measure. Agri-Foods are also identified as a critical growth sector and its specific importance for the rural economy is reflected in its coverage in Section 5.   The key growth sectors will include   Cultural Industries   The arts and cultural industries, in both Welsh and English represent a significant and growing sector of the Welsh economy: When the effect of the capital city is removed, it is also well distributed throughout Wales. The industries are key elements in stimulating creativity, innovation and knowledge - skills vital to economic development growth. Their importance is rated by the facts that: one in forty people in Wales is engaged in the industry and it contributes over £1.1 billion per year into the economy;   the global market for cultural goods is expanding;   the sector is characterised by indigenous businesses The sector is important in economic terms because active promotion of and participation in the arts and cultural activities can lead to a higher skills base, new employment opportunities, improved quality of life and a sharper competitive edge. Through these agents West Wales and the Valleys can be recognised as an innovative, creative, distinctive and confident region Attractive to sponsors, investors, partners and tourists.   The existence of a strong cultural sector, as is demonstrated in other bilingual regions e.g. Catalonia, Quebec, enhances regional competitiveness by: adding a distinctiveness to local products and services that make them easily identifiable in a competitive market; contributing to the identification and recognition of West Wales and the Valleys as an intelligent region with an emphasis on knowledge based industries; stimulating exports, Cultural events and products also attract high-profile attention and enhance the impact of trade missions and export promotions, attracting cultural tourism and contributing to other niches in the tourist market and contributing to the attractiveness of the region for location of businesses or for partnerships with other regions.   Moreover a strong cultural sector breeds confidence, which in turn breeds more confidence. Confidence leads to the ability to venture. Media Industries   A number of independent film makers, particularly specialist film producers, are located in the region. Support is needed to help these industries grow as well as to attract new businesses.   The advent of new technologies gives enormous opportunities for the cultural industries in terms of content provision in a variety of deliver y platforms and for development of the technology in educational tools, marketing etc. There are already businesses established in the region but support for expansion through, access to finance and business support, developing networks and creative "supply chains", and export and marketing support, will allow the industry to develop at a rate necessary to keep up with the rapid changes in the industry globally.   Tourism   In many parts of rural Wales tourism is the leading source of employment and economic wealth; the economic development of many peripheral areas is strongly linked with the performance of the industry. This strength is based on the presence of some valuable tourism assets and there is a strong tourism tradition, based mainly an the quality of the coastal and rural environments. The history and culture of Wales, is also a source of visitor interest as is the wide range of attractions and events in West Wales and the Valleys. Outside the main urban centres, the backbone of the tourism sector is the small family run business offering good value-for-money accommodation. In many parts of west Wales the industry is a major employer in areas where many other sectors face serious decline.   The industry, however, faces considerable problems in adjusting to change Seasonality is a persistent problem and the tourism product both in physical and in service/quality terms do not adequately meet the needs of target markets. These factors contribute to the downward pressures on the returns of small tourism operators, which reduces resources available for marketing, product investment and training   There is a need to improve the competitiveness of the tourism industry in West Wales and the Valleys. This can be achieved through investment in new and improved facilities and improvements in the quality of the product (both physical and human resources) to meet the needs of target markets. Such investment should help to sustain local communities, culture and the environment of West Wales and Valleys. Investment also needs to be made to raise the profile of the region as a major tourist destination and help it adjust to changing market circumstances.   In addition to the key growth sectors already identified, others with potential include;   Environmental Goods and Services   The WCMD market for environmental good and services is growing rapidly as a result of increasing environmental legislation, public, awareness of environmental issues and recognition by industry of the commercial benefits arising from environmental best practice,   Welsh companies are not always able to make the most of such opportunities. There is considerable scope for new companies to be formed in this sector, and for existing companies to diversity into the provision of environmental goods and services:   Other Areas with Potential, on which further research is required include: Less traditional agricultural sectors e.g. horticulture, speciality foods, aquaculture and land fisheries, shellfish, alternative crops, biomass rare and native breeds, etc.   Medical Technology   Renewable Energies   Financial Services Objectives To strengthen growing sectors in growth areas within the West Wales and the Valleys region   To raise awareness of the potential of these sectors and their products within and outside the region   To encourage sustainable growth of the sector   To increase the sector capital in West Wales and the Valleys   To develop the skills base and training capacity of targeted sectors within the region,   To promote links between the sector and the region's educational establishments Scope   The use of Operational Aid will be an important factor in promoting growth sectors To provide an expansion of sector and sub-sector specific advice and mentoring   To support sector specific marketing, promotional activities and product branding   To research the growth potential et targeted sectors and provide information on best practice internationally and within the UK   To provide support for start-up grants and loans to assist entrants into the sector   To develop networks and supply chains within the sector   To establish links between the sector and Universities and Colleges to facilitate Research and Development Opportunities   To provide bespoke facilities and premises where required.   To increase links with educational bodies to raise awareness of training needs and future career options in the sector   To support specific, required vocational and business skills training   To support schemes encouraging the sector to make best use of ICT for raising productivity, developing skills and marketing and sales promotion   Encouraging of trading, exporting and marketing fora across the sector   Supporting the establishment of centres of excellence Outputs number of existing firms involved with sectoral action,   number of potential start-ups accessing advisory activities.   number of SMEs receiving support.   number of new products produced in the region   number of trainees with skills required by the sector Impact jobs created in the sector   increased output in the sector   increased research and development in the sector   growth of suppliers to the sector   increase in earnings in sector   Growth in value of exports from the region

We welcome your comments on this site. Prepared 21 July 1999