£11 million EU-backed project to support growth of social businesses in Wales

An £11 million investment to support the growth of social businesses across Wales will be announced today by Finance and Government Business Minister Jane Hutt.

The Social Business Wales project, backed by over £6 million of EU funds and almost £5 million from the Welsh Government, will be delivered by the Wales Co-operative Centre and will provide specialist support for some 500 social businesses, including co-operatives, employee-owned companies and social enterprises.

Around 500 new jobs are expected to be created over the next five years.

Operating as part of the wider Welsh Government and EU funded Business Wales service, which provides a ‘one stop shop’ for entrepreneurs and small and medium sized enterprises (SMEs) wishing to start and grow their business in Wales, the project will offer specialist services to help social businesses expand their products, services and markets.

It will also help charities to establish trading arms to take forward commercial ideas, and support businesses and organisations that want to adopt co-operative or employee-owned business models.

The launch of the Social Business Wales project follows a recent report published by the Welsh Co-operative Centre which revealed that the social business sector adds around £1.7 billion of value to the Welsh economy and supports around 38,000 jobs in Wales.

The report also found that 69 per cent of Welsh social businesses expect to increase their turnover in the next two to three years.

The Finance Minister will announce the EU and Welsh Government investment for the project at the Digital Accessibility Centre – a social business in Neath that works with clients to create digital media that is accessible to all, including people with visual impairments, dyslexia, mobility impairments and learning disabilities.

The business provides employment opportunities for people with disabilities and has a global client list which includes Fujitsu, Santander and Channel 4.

Finance Minister, Jane Hutt, said:

“Nearly £2 billion of EU funds are being invested in Wales over the next seven years, adding value to the Welsh Government’s goals for strengthening the Welsh economy and labour market, and helping businesses to expand and create jobs.

“As a pro-business government, we are working closely with businesses to create growth and jobs in all parts of Wales. The social business sector plays an important role in supporting local economies, particularly in disadvantaged areas. I’m delighted that this investment of EU and Welsh Government funds will help to support and grow the sector so that it can continue to make a valuable contribution to the provision of important services within communities and create more jobs and opportunities across Wales.”

Economy, Science and Transport Minister, Edwina Hart, commented:

“The report by the Welsh Co-operative and Mutuals Commission clearly demonstrated that co-operatives and mutuals offer significant economic and social benefits and have the potential to transform our economy. Working in conjunction with Business Wales as a specialist delivery team this project will help grow the social business sector and ensure they play a central role in the Welsh economy.”

Chief Executive of the Wales Co-operative Centre, Derek Walker, added:

“Social businesses provide jobs and employment in many different sectors across the length and breadth of Wales while working towards fulfilling social aims as well as achieving profitability.

“We believe that social businesses have great potential for further growth in Wales. They underpin the wider economy and often fill the gaps that the private sector won’t consider and the public sector can’t support.

“The next few years will be exciting for social businesses and we look forward to playing our part in helping them to realise their potential.”

Further information on Social Business Wales is available on the Business Wales website or by contacting 03000 603000.