A record-breaking increase in entrepreneurial activity has been reported in Wales.

The 2023 Global Entrepreneurship Monitor (GEM) Wales report found that total early-stage entrepreneurial activity (TEA) in Wales reached 11.5 per cent in 2023, up from 7.8 per cent in 2022.

Entrepreneurship among young people in Wales also saw a rise, with 14 per cent now engaged in early-stage business activities, compared to just 2 per cent in 2002.

The report also found that 20 per cent of non-entrepreneurial working-age adults in Wales intend to start a business within the next three years, up from 15.7 per cent in 2022.

Responding to the report, Ben Cottam, head of Wales at the Federation of Small Businesses, said: "The significant increase in entrepreneurial activity in Wales and the clear appetite to establish new businesses, particularly amongst young people, is a positive sign.

"To become a high-growth, productive economy which creates well-paid jobs across Wales, we need successful businesses and new, innovative companies."

However, he also pointed out that business deaths in Wales still exceed business births, with 3,035 business deaths compared to 2,795 births in the first quarter of 2024, as reported by Economic Intelligence Wales.

He urged the Welsh and UK governments to 'prioritise policies that support small businesses at all stages of their lifecycle.'

This includes adequate access to finance, effective business support programmes, and supportive tax and employment frameworks.

Mr Cottam added: "Entrepreneurship and developing the skills of our talented business owners to help them grow their businesses, needs to be at the heart of any future plans for growing our economy.

"It needs to be reflected not just in business support but before that, in informing the aspirations of our younger people in schools and colleges."

He expressed optimism about working with the government to foster a thriving business ecosystem in Wales.