The Power of Creativity

FSB Policy Report 23 Oct 2024

Growing Welsh Creative Businesses - report from FSB Wales

The creative industries is a growth industry with huge potential for Wales. In 2022 the sector (excluding freelancers) generated a £3.8bn turnover, making 5.3% of total Welsh GDP. It is further estimated that in 2022 there were close to 10,500 active enterprises in the Welsh creative industries sector (including freelancers), employing between 68,000 and 90,000 people. 

The question of ‘value’ goes beyond simply measuring raw economic data. Arts and culture have a key part to play in tackling isolation and loneliness, driving active lifestyles, improving cognitive function, strengthening social cohesion and addressing the root causes of crime. The sector is a vehicle which can help individuals develop connections, improve creative and critical thinking, and build confidence and leadership skills. In other words, they help develop creative, confident citizens. 

Creative Wales’s break down by size of the businesses in this sector shows that it is dominated by micro businesses (even more so than wider economy): 

  • 1% of creative industries businesses were medium and large (50+ employees) 
  • 6% small (10-49 employees) 
  • 80% micro (1-9 employees)  
  • 14% had zero employees. 

Rooted in testimony from SMEs across Wales, this report looks at how a strategy for the creative industries can look to build a foundation for SME creatives, building a sector that has room and opportunity to grow. It outlines why and how, done correctly, this would be well targeted use of resources with significant benefits in terms of economic development. If aligned with SME growth, this would provide for impact across many areas of Wales, in both urban and rural economies, and bring in investment for a purpose, providing opportunities for education and employment for young people so supporting the young person’s guarantee. In supporting SMEs in the creative industries, we can increase prosperity and boost wider health and wellbeing benefits, helping our communities to thrive. 

Download the report here

welsh language version