THE KAYA FESTIVAL
young people
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May 012012
In February, I met a quiet and unassuming young man, Thabani Nyoni, who explained his vision for a new world music festival.
Zimbabwean born Nyoni has lived in London since the age of five and I was immediately struck by his idea that creativity and diversity can help the Welsh economy.
Nyoni is one of the founders of the Kaya Festival taking place in the Faenol estate from the 1st to the 3rd of June. Bryn Terfel's Faenol festival no longer exists but that doesn’t deter this music entrepreneur in the slightest. He chose the venue for his new venture after attending the Radio 1 Big Weekend in 2010.
Now with backing from Welsh Government, Gwynedd Council and the Arts Council, his vision has become reality.
This week, Ron Jones, founder of Wales's largest television company Tinopolis, wrote a salient article in his capacity as chairman of the Welsh Government creative sector advisory panel. He said that “Around the world, governments are realising the creative industries are amongst the leading sectors driving economic growth… our challenge is to ensure that no talent gets wasted, that no ideas are unexplored and no company is unable to take advantage of market opportunities.”
And thankfully, in this instance, the Welsh Government and other partners are collaborating to ensure Nyoni’s talent and ideas are not wasted. But it’s not simply the creative and economic benefits of a new music festival in Wales that interest me as the economic evidence regarding the local impact of music festivals is also overwhelming.
In 2009, a Welsh Music Foundation report looked at the now hugely successful Green Man Festival (which takes place on the Glan Usk estate in Powys) and found that it attracted 18,000 visitors, 98% of which visited solely to attend the festival and 77% came from outside Wales. Green Man now generates £3.5 million in direct additional expenditure in the region and £4.5 million from additional tourism expenditure.
It is interesting to note that when Green Man started, back in 2003, it only attracted 500 people. The Kaya Festival has already surpassed that figure in its first year. Big things start from small beginnings. The same study also claims softer benefits to the region through increased exposure from editorial coverage and the overall enhancement to brand Wales’ by being a ‘cool place’ to visit.
There are other examples of both cultural and economic impact to Wales, ranging from the Wakestock Festival on the Llyn Peninsula, attracting 25,000 people, to the much smaller but hugely influential Do Lectures, taking place again in Pembrokeshire this week. It is Nyoni's belief that Kaya offers something different to the local and UK festival crowd by also promoting creative skills and job opportunities. Whilst larger, more impersonal festivals are being hit by the economic climate, there is still a place for smaller festivals that offer a unique experience.
And it’s that aspect of Kaya festival which really excited me. Not content with establishing a new and commercially risky world music festival in North Wales, the organisers are also determined to develop the talents of local young people.
They’ve secured a personal performance and Q&A session from MC star Tinchy Stryder to help encourage local young people to take their first steps in the music business. Coleg Menai, Careers Wales and other local training providers will, through the festival, offer apprenticeships, mentoring and on-site training in all aspects of running a commercial music festival.
With youth unemployment hitting record highs, we must find better ways to engage and encourage young people. Kaya is a perfect opportunity to do so and North Wales must take advantage of such a great opportunity to promote local talent and develop more new creative entrepreneurs ourselves.
Zimbabwean born Nyoni has lived in London since the age of five and I was immediately struck by his idea that creativity and diversity can help the Welsh economy.
Nyoni is one of the founders of the Kaya Festival taking place in the Faenol estate from the 1st to the 3rd of June. Bryn Terfel's Faenol festival no longer exists but that doesn’t deter this music entrepreneur in the slightest. He chose the venue for his new venture after attending the Radio 1 Big Weekend in 2010.
Now with backing from Welsh Government, Gwynedd Council and the Arts Council, his vision has become reality.
This week, Ron Jones, founder of Wales's largest television company Tinopolis, wrote a salient article in his capacity as chairman of the Welsh Government creative sector advisory panel. He said that “Around the world, governments are realising the creative industries are amongst the leading sectors driving economic growth… our challenge is to ensure that no talent gets wasted, that no ideas are unexplored and no company is unable to take advantage of market opportunities.”
And thankfully, in this instance, the Welsh Government and other partners are collaborating to ensure Nyoni’s talent and ideas are not wasted. But it’s not simply the creative and economic benefits of a new music festival in Wales that interest me as the economic evidence regarding the local impact of music festivals is also overwhelming.
In 2009, a Welsh Music Foundation report looked at the now hugely successful Green Man Festival (which takes place on the Glan Usk estate in Powys) and found that it attracted 18,000 visitors, 98% of which visited solely to attend the festival and 77% came from outside Wales. Green Man now generates £3.5 million in direct additional expenditure in the region and £4.5 million from additional tourism expenditure.
It is interesting to note that when Green Man started, back in 2003, it only attracted 500 people. The Kaya Festival has already surpassed that figure in its first year. Big things start from small beginnings. The same study also claims softer benefits to the region through increased exposure from editorial coverage and the overall enhancement to brand Wales’ by being a ‘cool place’ to visit.
There are other examples of both cultural and economic impact to Wales, ranging from the Wakestock Festival on the Llyn Peninsula, attracting 25,000 people, to the much smaller but hugely influential Do Lectures, taking place again in Pembrokeshire this week. It is Nyoni's belief that Kaya offers something different to the local and UK festival crowd by also promoting creative skills and job opportunities. Whilst larger, more impersonal festivals are being hit by the economic climate, there is still a place for smaller festivals that offer a unique experience.
And it’s that aspect of Kaya festival which really excited me. Not content with establishing a new and commercially risky world music festival in North Wales, the organisers are also determined to develop the talents of local young people.
They’ve secured a personal performance and Q&A session from MC star Tinchy Stryder to help encourage local young people to take their first steps in the music business. Coleg Menai, Careers Wales and other local training providers will, through the festival, offer apprenticeships, mentoring and on-site training in all aspects of running a commercial music festival.
With youth unemployment hitting record highs, we must find better ways to engage and encourage young people. Kaya is a perfect opportunity to do so and North Wales must take advantage of such a great opportunity to promote local talent and develop more new creative entrepreneurs ourselves.
WALES AND EXPORTING
Welsh Economy
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Apr 242012
No term used to epitomise the British economy more than “trading nation” and so, given the desperate need to increase trade to drag the country out of its current economic doldrums, it was good to see our most senior politicians at Westminster and Cardiff Bay recently zigzagging their way across the Asian continent.
As is usual in these high-level trade missions, much of the press focus is on the links with multinational companies that have invested strongly in this country. Yet, perhaps more important to the future of the Welsh economy is the potential of indigenous businesses and their ability to sell goods and services internationally.
So how is Welsh business performing in this regard?
According to the most up to date statistics from the Welsh Government, Wales accounts for just over five per cent of the international trade of all UK regions, which is higher than its share of businesses across the economy. Indeed, exports worth £13.4 billion were generated in 2011, an increase of 14 per cent on the previous year and a figure higher than the UK average growth of 12 per cent (although lower than the 18 per cent recorded in Scotland).
Whilst this is a highly creditable performance for a small economy, it is no cause for celebration. Wales remains largely dependent on just four industries that account for over 80 per cent of the value of exports, namely energy (30 per cent), engineering (29 per cent), metals (13 per cent) and chemicals (8 per cent). Fortunately, analysts suggest that these sectors will continue to grow over the next few years and announcements such as Tata’s £800m investment into the Welsh economy will ensure that overall exports should continue to grow over the next few years.
However, if Wales is to develop its economy, other industries must also show growth over the next few years and it is disappointing that the key sectors highlighted by the Welsh Government for special support continue to have little impact on exporting performance.
For example, sectors that have experienced an overall decline in exporting activity during the last year include automotive, biotechnology and pharmaceuticals, and the largest drop in performance was experienced by the telecommunications industry with a 30 per cent decrease over the year. It is also worth noting that the destination of our exports has changed considerably during the last twelve years.
Back in 1999, Welsh exported 73 per cent of its goods to the European Union but by 2011, this had fallen to 42 per cent, considerably less than the UK as a whole where 53 per cent of exports cross the Channel. In contrast, 29 per cent of all our exported goods go to North America, far higher than for the UK as a whole and, more importantly, our trade across the Atlantic has grown by 16 per cent during the last year. In terms of emerging markets, whilst Wales’ trade with Latin America has grown by 45 per cent, we have only experienced a growth of 8 per cent in the key markets of Asia and Oceania (as compared to 21 per cent for the rest of the UK).
Therefore, the current exporting scoreboard for the Welsh economy is a mixed bag of results. Whilst overall exporting growth is buoyant, it remains focused in a narrow range of industries dominated by large companies such as Tata, Airbus and Dow Corning.
This suggests that there is still much to do in terms of getting small and medium sized enterprises (SMEs) in Wales to internationalise their activities. The data also fails to provide good news for those policymakers who have focused their efforts on supporting those key sectors that should have the ability to grow in international markets. Given this, it may be pertinent for each of the sector panels appointed by the Welsh Government to examine how the companies within their remit can adopt a more international approach to their business and develop their massive overseas potential.
It is therefore clear that there needs to be a more strategic approach to targeting key markets. This not only applies to regions such as North America which are proportionately more important to Wales than the rest of the UK, but also in emerging countries in Asia where we are underperforming. In this respect, the Welsh Government should examine how it can work more strategically with the UK Government to better target these markets.
If we are to develop a more export oriented economy, then it not only the quantity of exporters that must increase but also the quality. For non-exporting firms, there are various interventions that can get them to start thinking seriously about internationalising their activities. These not only include seminars and workshops, export information provision and sponsorship to trade fairs but also opportunities for greater networking, especially with foreign customers. This is a role that large multinational companies based in Wales could undertake given their operations in other countries. Academic institutions could also draw on their extensive networks to link Welsh firms with alumni overseas.
For those Welsh companies already internationalised, they may need less government support with regard to developing overseas business relationships although policymakers, through supporting sector-based co-operative arrangements, can get key Welsh businesses working in the same industry to mutually support each other in export markets. Again, this is something that the Welsh Government, through its new sector panels, could facilitate and thus increase the reputation of Wales’s products and services overseas.
Therefore, if government, industry and academic institutions can work together to develop a new approach to support the internationalisation of business, there could yet be a Welsh renaissance in trading overseas.
As is usual in these high-level trade missions, much of the press focus is on the links with multinational companies that have invested strongly in this country. Yet, perhaps more important to the future of the Welsh economy is the potential of indigenous businesses and their ability to sell goods and services internationally.
So how is Welsh business performing in this regard?
According to the most up to date statistics from the Welsh Government, Wales accounts for just over five per cent of the international trade of all UK regions, which is higher than its share of businesses across the economy. Indeed, exports worth £13.4 billion were generated in 2011, an increase of 14 per cent on the previous year and a figure higher than the UK average growth of 12 per cent (although lower than the 18 per cent recorded in Scotland).
Whilst this is a highly creditable performance for a small economy, it is no cause for celebration. Wales remains largely dependent on just four industries that account for over 80 per cent of the value of exports, namely energy (30 per cent), engineering (29 per cent), metals (13 per cent) and chemicals (8 per cent). Fortunately, analysts suggest that these sectors will continue to grow over the next few years and announcements such as Tata’s £800m investment into the Welsh economy will ensure that overall exports should continue to grow over the next few years.
However, if Wales is to develop its economy, other industries must also show growth over the next few years and it is disappointing that the key sectors highlighted by the Welsh Government for special support continue to have little impact on exporting performance.
For example, sectors that have experienced an overall decline in exporting activity during the last year include automotive, biotechnology and pharmaceuticals, and the largest drop in performance was experienced by the telecommunications industry with a 30 per cent decrease over the year. It is also worth noting that the destination of our exports has changed considerably during the last twelve years.
Back in 1999, Welsh exported 73 per cent of its goods to the European Union but by 2011, this had fallen to 42 per cent, considerably less than the UK as a whole where 53 per cent of exports cross the Channel. In contrast, 29 per cent of all our exported goods go to North America, far higher than for the UK as a whole and, more importantly, our trade across the Atlantic has grown by 16 per cent during the last year. In terms of emerging markets, whilst Wales’ trade with Latin America has grown by 45 per cent, we have only experienced a growth of 8 per cent in the key markets of Asia and Oceania (as compared to 21 per cent for the rest of the UK).
Therefore, the current exporting scoreboard for the Welsh economy is a mixed bag of results. Whilst overall exporting growth is buoyant, it remains focused in a narrow range of industries dominated by large companies such as Tata, Airbus and Dow Corning.
This suggests that there is still much to do in terms of getting small and medium sized enterprises (SMEs) in Wales to internationalise their activities. The data also fails to provide good news for those policymakers who have focused their efforts on supporting those key sectors that should have the ability to grow in international markets. Given this, it may be pertinent for each of the sector panels appointed by the Welsh Government to examine how the companies within their remit can adopt a more international approach to their business and develop their massive overseas potential.
It is therefore clear that there needs to be a more strategic approach to targeting key markets. This not only applies to regions such as North America which are proportionately more important to Wales than the rest of the UK, but also in emerging countries in Asia where we are underperforming. In this respect, the Welsh Government should examine how it can work more strategically with the UK Government to better target these markets.
If we are to develop a more export oriented economy, then it not only the quantity of exporters that must increase but also the quality. For non-exporting firms, there are various interventions that can get them to start thinking seriously about internationalising their activities. These not only include seminars and workshops, export information provision and sponsorship to trade fairs but also opportunities for greater networking, especially with foreign customers. This is a role that large multinational companies based in Wales could undertake given their operations in other countries. Academic institutions could also draw on their extensive networks to link Welsh firms with alumni overseas.
For those Welsh companies already internationalised, they may need less government support with regard to developing overseas business relationships although policymakers, through supporting sector-based co-operative arrangements, can get key Welsh businesses working in the same industry to mutually support each other in export markets. Again, this is something that the Welsh Government, through its new sector panels, could facilitate and thus increase the reputation of Wales’s products and services overseas.
Therefore, if government, industry and academic institutions can work together to develop a new approach to support the internationalisation of business, there could yet be a Welsh renaissance in trading overseas.
WALES VS ICELAND – WHO WINS THE TOURISM MEDIA BATTLE?
Uncategorized
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Apr 202012
Yesterday, I posted some videos from a Finnish company called Place Marketing, which focuses on promoting towns and regions.
Given this, it is worth looking at two recent examples of marketing for two small nations, namely Wales and Iceland.
Despite being a full blooded Welshman, I know which one I would go for (unfortunately).
Given this, it is worth looking at two recent examples of marketing for two small nations, namely Wales and Iceland.
Despite being a full blooded Welshman, I know which one I would go for (unfortunately).
Apr 192012
Having been in Finland for the past few days, I managed to catch up with a former flatmate from Dublin, Jonne Saivosalmi, who now runs a company called Place Marketing, a media company that focus on promoting towns and regions in Finland.
Some of the work they do is groundbreaking and I would love to see them pitch for work in Wales, especially given their quirky and innovative approach which is a million miles away from the advertising usually procured by Welsh organisations.
Take, for example, their campaign to promote higher education to overseas students in Oulu in Northern Finland.
Not an easy sell, I can assure you, but they bring it off perfectly for their target market as the videos below demonstrate.
1. Jason from Oulu on Vimeo.
Yu-hsuan from Oulu on Vimeo.
Gisbert from Oulu on Vimeo.
Shanila from Oulu on Vimeo.
Some of the work they do is groundbreaking and I would love to see them pitch for work in Wales, especially given their quirky and innovative approach which is a million miles away from the advertising usually procured by Welsh organisations.
Take, for example, their campaign to promote higher education to overseas students in Oulu in Northern Finland.
Not an easy sell, I can assure you, but they bring it off perfectly for their target market as the videos below demonstrate.
1. Jason from Oulu on Vimeo.
Yu-hsuan from Oulu on Vimeo.
Gisbert from Oulu on Vimeo.
Shanila from Oulu on Vimeo.
AN ENTREPRENEURSHIP HALL OF FAME FOR WALES?
Business News
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Apr 162012
Earlier this month, Fortune - the global business magazine - published its list of what it considered to be the definitive list of the twelve greatest entrepreneurs of our time.
Those recognised by the publication, in rank order, were Steve Jobs of Apple; Bill Gates of Microsoft; Fred Smith of FedEx; Jeff Bezos of Amazon; Larry Page and Sergey Brin of Google; Howard Schultz of Starbucks; Mark Zuckerberg of Facebook; John Mackey of Whole Foods; Herb Kelleher of SouthWest Airlines; Narayana Murthy of Infosys; Sam Walton of Wal-Mart; and Muhammad Yunus of Grameen Bank.
As with all such subjective lists, it was controversial. Dominated by American high technology founders, the list had no women entrepreneurs and only two individuals recognised who are based outside the USA. It didn’t even include Sir Richard Branson despite his various entrepreneurial ventures ranging from Virgin Records to Virgin Atlantic and being the individual that most young people, at least in the UK, would wish to emulate.
Yet apart from being something that any group of people would sit and argue over in a pub whilst having a few beers, what is the value of having such a list of successful entrepreneurs?
Part of the answer lies in research findings that demonstrate the importance of role models in encouraging entrepreneurial activity. This stems from early studies that showed a positive correlation between the decision to start up a new venture and having parents who were entrepreneurs and ran their own firms. Research on networks has also indicated that peer groups can help to influence the decision to become an entrepreneur. In fact, those geographical areas where there are already successful entrepreneurs will continue to grow and prosper because of the presence of such role models who can provide information, resources or just simply inspiration.
There are of course, various ways in which to utilise such role models to encourage greater entrepreneurship. Some have argued that lists of entrepreneurs such as Fortune’s are largely irrelevant to most businesspeople. This is because the average entrepreneur who would prefer to look closer to home for inspiration will rarely consider such iconic individuals such as Jobs, Gates or Zuckerberg as role models. I wouldn’t necessarily agree with such a sentiment but there are two excellent examples of successful, but different, approaches in Wales to utilising successful local individuals and companies as inspiration for others to follow.
First of all there is the Wales Fast Growth 50, which has provided role models for other Welsh firms during the last fourteen years in the Western Mail and other publications. Secondly, there is Dynamo, a programme developed by the Entrepreneurship Action Plan for Wales to bring local entrepreneurs into schools, colleges and universities to talk about their experiences in starting and managing businesses, thus encouraging young people to do the same. Both, in their own ways, have helped to celebrate Welsh entrepreneurship across the nation and provided examples of successful practice to those thinking of starting a new firm.
Yet, I believe that if Wales is to fully embrace entrepreneurship across all aspects of its economic and social life, there must be a more coherent way to recognise the achievements of those who helped build this nation since the industrial revolution. Around a decade ago, I discussed the potential of developing a Welsh Entrepreneurship Hall of Fame with the Welsh Development Agency (WDA).
Despite gaining support from academics and businesspeople for the concept, those responsible for marketing within the WDA were not convinced that we should develop a vehicle to recognise individuals such as David Davies, Robert Owen, Laura Ashley and others whose risk-taking, innovation and creativity throughout the last two hundred years have shaped, and continue to shape, communities across Wales. As a result, the idea never got anywhere and before we could resurrect it, the WDA was abolished.
The question is whether such a proposal should be considered again?
Certainly, there should be a drive by the government and the business community to develop more entrepreneurs who would encourage greater prosperity and wealth creation within our nation. The creation of an Entrepreneurship Hall of Fame that would acknowledge, understand and disseminate the achievements of enterprising Welsh men and women as an inspiration for others would be a timely step towards this goal, especially if it included not only industrial giants from our history but also those who, in today’s global economy, are making a real impact in Wales and beyond through their hard work and innovation.
Those recognised by the publication, in rank order, were Steve Jobs of Apple; Bill Gates of Microsoft; Fred Smith of FedEx; Jeff Bezos of Amazon; Larry Page and Sergey Brin of Google; Howard Schultz of Starbucks; Mark Zuckerberg of Facebook; John Mackey of Whole Foods; Herb Kelleher of SouthWest Airlines; Narayana Murthy of Infosys; Sam Walton of Wal-Mart; and Muhammad Yunus of Grameen Bank.
As with all such subjective lists, it was controversial. Dominated by American high technology founders, the list had no women entrepreneurs and only two individuals recognised who are based outside the USA. It didn’t even include Sir Richard Branson despite his various entrepreneurial ventures ranging from Virgin Records to Virgin Atlantic and being the individual that most young people, at least in the UK, would wish to emulate.
Yet apart from being something that any group of people would sit and argue over in a pub whilst having a few beers, what is the value of having such a list of successful entrepreneurs?
Part of the answer lies in research findings that demonstrate the importance of role models in encouraging entrepreneurial activity. This stems from early studies that showed a positive correlation between the decision to start up a new venture and having parents who were entrepreneurs and ran their own firms. Research on networks has also indicated that peer groups can help to influence the decision to become an entrepreneur. In fact, those geographical areas where there are already successful entrepreneurs will continue to grow and prosper because of the presence of such role models who can provide information, resources or just simply inspiration.
There are of course, various ways in which to utilise such role models to encourage greater entrepreneurship. Some have argued that lists of entrepreneurs such as Fortune’s are largely irrelevant to most businesspeople. This is because the average entrepreneur who would prefer to look closer to home for inspiration will rarely consider such iconic individuals such as Jobs, Gates or Zuckerberg as role models. I wouldn’t necessarily agree with such a sentiment but there are two excellent examples of successful, but different, approaches in Wales to utilising successful local individuals and companies as inspiration for others to follow.
First of all there is the Wales Fast Growth 50, which has provided role models for other Welsh firms during the last fourteen years in the Western Mail and other publications. Secondly, there is Dynamo, a programme developed by the Entrepreneurship Action Plan for Wales to bring local entrepreneurs into schools, colleges and universities to talk about their experiences in starting and managing businesses, thus encouraging young people to do the same. Both, in their own ways, have helped to celebrate Welsh entrepreneurship across the nation and provided examples of successful practice to those thinking of starting a new firm.
Yet, I believe that if Wales is to fully embrace entrepreneurship across all aspects of its economic and social life, there must be a more coherent way to recognise the achievements of those who helped build this nation since the industrial revolution. Around a decade ago, I discussed the potential of developing a Welsh Entrepreneurship Hall of Fame with the Welsh Development Agency (WDA).
Despite gaining support from academics and businesspeople for the concept, those responsible for marketing within the WDA were not convinced that we should develop a vehicle to recognise individuals such as David Davies, Robert Owen, Laura Ashley and others whose risk-taking, innovation and creativity throughout the last two hundred years have shaped, and continue to shape, communities across Wales. As a result, the idea never got anywhere and before we could resurrect it, the WDA was abolished.
The question is whether such a proposal should be considered again?
Certainly, there should be a drive by the government and the business community to develop more entrepreneurs who would encourage greater prosperity and wealth creation within our nation. The creation of an Entrepreneurship Hall of Fame that would acknowledge, understand and disseminate the achievements of enterprising Welsh men and women as an inspiration for others would be a timely step towards this goal, especially if it included not only industrial giants from our history but also those who, in today’s global economy, are making a real impact in Wales and beyond through their hard work and innovation.
Apr 102012
Last week, the World Economic Forum (WEF) published their annual Global Information Technology Report which measures the extent to which various nations are developing their Information and Communications Technology (ICT) capacity and its impact on competitiveness, as well as economic and social capacity.
It does this by examining a number of factors including the friendliness of a country’s market and regulatory framework in supporting high levels of uptake, and the degree of a society’s preparation to make good use of an affordable ICT infrastructure.
It also looks at the efforts of individuals, business and government to increase their capacity to use ICT and the broad economic and social impacts accruing from this. As with all detailed reports from the WEF, there are some mouth-watering statistics for those looking to see where the next growth areas are going to develop.
For example, the study finds that mobile broadband is currently generating a tremendous $1.3trillion in annual revenues. More importantly, more than 80 per cent of broadband connections by 2016 will be mobile, with the major growth over the next five years occurring in emerging countries.
But what is of real interest are the national comparisons, which rank different countries across a range of variables. According to the study, those that are most successful in the World at leveraging ICT are all small nations, and Sweden, Singapore, Finland and Denmark have all fully integrated ICT in their competitiveness strategies to boost innovation within their economies. In fact, Sweden’s performance is rated as “remarkable” by the authors, ranking first in four key areas namely infrastructure and digital content, individual usage, business usage, and economic impacts. In addition, Singapore leads the in terms of political and regulatory environment for ICT as well as the business and innovation environment.
Whilst ranked 10th in the World, the UK continues to improve its performance across the board as compared to previous studies, with sophisticated and innovative businesses that are highly adept at harnessing the latest technologies for productivity improvements.
However, given the fact that there are regional disparities across the UK in the provision and access to ICT, it may be a worthwhile exercise for the Welsh Government to benchmark our nation using the methodology adopted for the Global Information Technology Report, especially given the relative success of other smaller economies.
One of the major conclusion from the report is that it recognises that there will be increasing challenges for economies around the World as smart devices continue to become a greater part of everyone’s lives. Indeed, policymakers will need to consider an environment in which the internet can be accessed immediately, people and organisations can contact each other instantly and, as a result of new developments such as social media, fundamental transformations in all areas of society will take place.
As discussed, the fact that the management of information (commonly known as ‘big data’) will be an integral part of these changes, the team behind the new £40 million supercomputer known as HPC Wales may need to reconsider its use in the future as a tool for assisting business to manage these trends rather than just being a tool for academic research, and how ICT can be leveraged to create competitive advantages for the economy as well as increasing social well-being.
Indeed, the report presents an insightful case study how the exponential growth in big data could lead a transformation of both the public and private sectors. With the right approach, Government can utilise this information to target policy, strategy, and investment so as to reduce costs and improve impact measurement. Businesses can also analyse the vast amount of data it gathers to respond to key influencers, manage risks, strengthen brands and increase customer knowledge.
But to do this properly, we need to carefully examine how we are developing and training the workforce of the future. Eric Schmidt, the head of Google, recently expressed his surprise in a recent article that computer science wasn't being taught as standard in British schools. In fact, he simply couldn’t understand why the Information and Communication Technology (ICT) curriculum was teaching children how to use software products such as word processors and spreadsheets but providing little insight into how that software was created.
And this lack of focus on developing skills within schools for what is undoubtedly the key industry of the future having an effect on university entry into the subject. For example, data from the Welsh Government shows that whilst the overall number of Welsh domiciled students has increased by 1 per cent between 2003 and 2011, the numbers studying computer science has fallen by 25 per cent. In fact, there were only 350 Welsh students studying computer science at a postgraduate level in 2011.
Given this, how are we going to create a strong industrial cluster in this area, as is the aim of the Welsh Government, if the number of students being trained to develop the software and hardware has fallen by a quarter and shows no sign of recovery?
Therefore, the one question for politicians and policymakers in Wales that has still to be answered properly is how ICT can be fully integrated into an economic strategy so that organisations and businesses can capitalise on the new opportunities emerging in this area. Certainly, we cannot as a nation afford to be left behind in this area, especially as it offers a means by which we can reduce the prosperity gap with other parts of the UK.
It does this by examining a number of factors including the friendliness of a country’s market and regulatory framework in supporting high levels of uptake, and the degree of a society’s preparation to make good use of an affordable ICT infrastructure.
It also looks at the efforts of individuals, business and government to increase their capacity to use ICT and the broad economic and social impacts accruing from this. As with all detailed reports from the WEF, there are some mouth-watering statistics for those looking to see where the next growth areas are going to develop.
For example, the study finds that mobile broadband is currently generating a tremendous $1.3trillion in annual revenues. More importantly, more than 80 per cent of broadband connections by 2016 will be mobile, with the major growth over the next five years occurring in emerging countries.
But what is of real interest are the national comparisons, which rank different countries across a range of variables. According to the study, those that are most successful in the World at leveraging ICT are all small nations, and Sweden, Singapore, Finland and Denmark have all fully integrated ICT in their competitiveness strategies to boost innovation within their economies. In fact, Sweden’s performance is rated as “remarkable” by the authors, ranking first in four key areas namely infrastructure and digital content, individual usage, business usage, and economic impacts. In addition, Singapore leads the in terms of political and regulatory environment for ICT as well as the business and innovation environment.
Whilst ranked 10th in the World, the UK continues to improve its performance across the board as compared to previous studies, with sophisticated and innovative businesses that are highly adept at harnessing the latest technologies for productivity improvements.
However, given the fact that there are regional disparities across the UK in the provision and access to ICT, it may be a worthwhile exercise for the Welsh Government to benchmark our nation using the methodology adopted for the Global Information Technology Report, especially given the relative success of other smaller economies.
One of the major conclusion from the report is that it recognises that there will be increasing challenges for economies around the World as smart devices continue to become a greater part of everyone’s lives. Indeed, policymakers will need to consider an environment in which the internet can be accessed immediately, people and organisations can contact each other instantly and, as a result of new developments such as social media, fundamental transformations in all areas of society will take place.
As discussed, the fact that the management of information (commonly known as ‘big data’) will be an integral part of these changes, the team behind the new £40 million supercomputer known as HPC Wales may need to reconsider its use in the future as a tool for assisting business to manage these trends rather than just being a tool for academic research, and how ICT can be leveraged to create competitive advantages for the economy as well as increasing social well-being.
Indeed, the report presents an insightful case study how the exponential growth in big data could lead a transformation of both the public and private sectors. With the right approach, Government can utilise this information to target policy, strategy, and investment so as to reduce costs and improve impact measurement. Businesses can also analyse the vast amount of data it gathers to respond to key influencers, manage risks, strengthen brands and increase customer knowledge.
But to do this properly, we need to carefully examine how we are developing and training the workforce of the future. Eric Schmidt, the head of Google, recently expressed his surprise in a recent article that computer science wasn't being taught as standard in British schools. In fact, he simply couldn’t understand why the Information and Communication Technology (ICT) curriculum was teaching children how to use software products such as word processors and spreadsheets but providing little insight into how that software was created.
And this lack of focus on developing skills within schools for what is undoubtedly the key industry of the future having an effect on university entry into the subject. For example, data from the Welsh Government shows that whilst the overall number of Welsh domiciled students has increased by 1 per cent between 2003 and 2011, the numbers studying computer science has fallen by 25 per cent. In fact, there were only 350 Welsh students studying computer science at a postgraduate level in 2011.
Given this, how are we going to create a strong industrial cluster in this area, as is the aim of the Welsh Government, if the number of students being trained to develop the software and hardware has fallen by a quarter and shows no sign of recovery?
Therefore, the one question for politicians and policymakers in Wales that has still to be answered properly is how ICT can be fully integrated into an economic strategy so that organisations and businesses can capitalise on the new opportunities emerging in this area. Certainly, we cannot as a nation afford to be left behind in this area, especially as it offers a means by which we can reduce the prosperity gap with other parts of the UK.
FINANCE FOR ENTREPRENEURS
Business News
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Apr 042012
Last week, I gave a session on growth companies to a group of Irish companies.
In the session on finance, this new sketchbook from Paul Kedrosky, Senior Fellow at the Kauffman Foundation, was a perfect summary on the different sources of finance for entrepreneurs.
Yes, venture capitalists are not at the heart of entrepreneurial finance and most companies are actually funded by the entrepreneur’s savings, cash flow, friends, family and, yes, even credit cards!
In the session on finance, this new sketchbook from Paul Kedrosky, Senior Fellow at the Kauffman Foundation, was a perfect summary on the different sources of finance for entrepreneurs.
Yes, venture capitalists are not at the heart of entrepreneurial finance and most companies are actually funded by the entrepreneur’s savings, cash flow, friends, family and, yes, even credit cards!
















