The Welsh Government has announced funding of £44 million to help grow small to medium sized enterprises (SMEs) in Wales.
Economy Minister Edwina Hart said the money will fund business support under the Business Wales banner for another five years and follows the previous programme which advised 15,300 SMEs leading to the creation of almost 2,000 new jobs.
Mrs Hart said: “Over 99% of businesses in Wales are SMEs, and they account for 60% of private sector employment, so they are crucial for driving economic growth and creating jobs.
“Business Wales is now an established ‘one stop shop’ for SMEs looking to grow their business in Wales.
“The comprehensive business support offered through Business Wales combined with an extensive knowledge of the private sector has helped SMEs to manage and grow their business effectively, recruit and train staff, develop their products and expand markets whilst meeting customer demands.
“I am very pleased we have been able to ensure this business support service will continue for a further five years.”
The SME support service will be funded by £26m from the European Regional Development Fund and £18m from the Welsh Government.
Minister for Finance and Government Business, Jane Hutt said: “This investment is an excellent example of how EU funds are supporting Welsh Government initiatives to create a positive climate for business growth in Wales.
“Over the next seven years a further £1.9 billion of EU funds will be invested in Wales to underpin economic growth and jobs, including investments for Welsh businesses to compete successfully in the global economy.”
The Federation of Small Businesses in Wales has welcomed the announcement.
FSB Wales Policy Chair Janet Jones said: “Support can be extremely valuable when you are setting up or growing a business so we welcome the announcement of the extension of the Business Wales advice service.
“Targeting EU funding to grow small businesses is essential if we are to build the economy of Wales to the point where we no longer qualify for European structural funds.
“However, given that the extension announced is for five years we would be keen to see the terms of the contract and how Business Wales fits in with the recommendation for a new Development Bank for Wales that could bring together business finance and business advice.”