Small businesses are a vital part of our communities; they create wealth and sustainable employment opportunities for local people within our communities. For far too long economic development in Wales has been focused on large scale development of what can be best described a single egg solutions, which promise much and deliver significantly less, the focus should be on developing small to medium size local businesses, which are significantly less likely to up sticks and leave for perceived greener pastures and fresh applications of development grants.
There has been far too much focus on attracting large scale single enterprises, which promise much but deliver significantly less, the expensive disaster / fiasco [take your pick] promised a spectacular total of 6,000 jobs - significant public funding was committed by the then Welsh Secretary, William Hague, it never delivered. Anyone with half a brain or even half an understanding of the state of the Korean and the Far Eastern economies at the time that and a basic understanding of where technological developments in relation to PC monitor screens were going, would have put their hand up.
A combination fantasy island economic assessments, a fatally flawed business case and a forthcoming Westminster election led to one of the duller decisions of recent years being made, something that ended up costing us millions of pounds worth of public money. The WDA has in truth not really delivered anything like long term economic stability and Long term job opportunities to our communities.
European funding opportunities have been wasted, where are the physical assets, by which I mean the things you can literally put your hand on like improved communications (rail and road), broadband infrastructure, etc that bring long term benefits to our communities. How much money has been scammed into dubious training programmes and questionable educations programmes that fail to deliver the skills out workers and potential workers need to make a decent living in the modern economy?
The Plaid driven One Wales Government has attempted to think and act differently when it comes to economic development and support for small to medium sized enterprises, which are the only real thing that will put wealth into our communities, and develop and sustain longer term employment possibilities. Attracting branch factory operations of a relative short term duration does not help develop our economy - we really do need to think differently and focus economic development priorities on smaller local businesses who will be rooted in our communities and offer more flexible employment opportunities.
The Federation of Small Businesses (FSB) noted that the UK is losing 2,000 local shops every year and that of this rate of loss continues then by 2015, less than 5 years hence, there will be no independent retailers left in business, something that will badly hit both consumers and our communities hard as they lose any real choice in the marketplace and lose potential job opportunities. Over the last twenty years the commercial hearts of many of our communities have been seriously damaged as a result of a combination of aggressive policies pursued by the larger retail chains and exceptionally poor decision making on the part of local government and central government indifference.
When combined with the rapid growth of unsustainable, ill-thought out and more than questionable out of town and edge of town retail developments which leave next to no place for the smaller local businesses and retailers and deprive consumers of real choice. When you factor in parking charges, business rates and the effect of the closure of high street banks and post offices in many of our communities and you begin to see why many of our smaller businesses and local shopping centres are up against it.
Local small businesses as well as trading with us the consumers, also trade with each other - so the community gets twice the benefit. Money spent by and in local businesses spends on average three times longer in the local economy than that spent with chain stores which is instantly lost to the local economy which in times of recession our communities can ill afford.
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