City will continue towards prosperity

1:26pm Tuesday 6th May 2008

SMEs in Wales believe Newport will continue on the path to prosperity despite fears of an economic slowdown, according to a survey carried out by accountancy practice Mazuma.

Research carried out among the South Wales-based firm's 500 clients, found that 39 per cent believed the city's progress would not be derailed by the credit crunch, as businesses would carry on taking advantage of its geographical location and its new developments.

The survey, the first of its kind among Welsh SMEs for some time, also found that while nearly all respondents were either concerned (43 per cent) or slightly concerned (48 per cent) about an economic slowdown, none of them said they were either feeling the effects or saw any problems in their sector. Some nine per cent said their businesses would thrive in a recession.

Twice as many (40 per cent) said they were more likely to lose sleep over the state of their order book than over the credit crunch (20 per cent), while a third said they would rest better if they had a plan that showed where their businesses would be in five years' time.

Lucy Cohen, Mazuma director, said: "These findings confirm what we've suspected for some time - that Newport's upwards economic trajectory is sustainable. We joined the Newport Chamber of Commerce after realising that more and more of our clients are here. Being in Newport has made a huge impact on our business and this survey bears that out."

When asked how the Assembly could help, 36 per cent said a less confusing network of support agencies would benefit them better than grant aid (26 per cent). While almost half (47 per cent) wanted support from the government in the form of lower taxes, 27 per cent wanted better co-ordination between regional development agencies, so that companies based in those areas would be able to better trade with one another. While a fifth of respondents wanted Westminster to stop using green issues as a convenient way of pricing us off the road', only six per cent were looking for more trade missions abroad.

Only eight per cent believed they could source skilled and specialist staff easily in the Welsh marketplace. Half thought it very hard' to find suitable employees, while 42 per cent said more should be done to prepare staff for a small business mindset.

The education system was particularly criticised, with only seven per cent of employers saying that school leavers arrived with the skills to make an immediate contribution to the business. Some 47 per cent said they arrived with enough to get by', while 15 per cent described the training process as a long, hard slog', and almost a quarter (23 per cent) said they had wondered about recruiting from Bristol Zoo'.

Sophie Hughes, Mazuma director, said, "Some may believe that last finding is a little harsh, but small businesses get less time for training than those with more than 250 staff. We're encouraged by the recent changes that the Assembly has made, bringing education and enterprise closer together. We hope these findings will be of further help to them."

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