Foundational Economy

What is the foundational economy

The foundational economy includes sectors that provide the goods and services we use every day.

Why the foundational economy matters

Supporting the foundational economy is a key commitment in our Economic resilience and reconstruction mission.

The foundational economy accounts for:

• 60% of all Welsh headquartered businesses
• 51% of employees of the Welsh VAT registered businesses
• 47% of overall turnover in Wales

What we aim to achieve

Our aim is to build a resilient foundational economy by strengthening essential sectors, improving fair work, and supporting skills and career progression. This includes helping Welsh businesses create high quality jobs, grow locally owned enterprises, and keep wealth circulating within communities. Ultimately, our goal is to ensure universal access to key goods and services, improving wellbeing across Wales.

Read about our objectives and methods in the Foundational economy: mission statement.

Our approach aligns with the Well-being of Future Generations Act 2015.

What has the Foundational Economy Achieved in Wales?

Through Foundational Economy funding, Welsh businesses have been able to create or retain over 1,200 jobs, boosting capability and building economic resilience in Wales.

Suppliers in the Housing and Construction sectors have been supported to upskill their workers, gain critical accreditations and support apprenticeships.

Welsh Food businesses have delivered over 200,000 portions of organic Welsh vegetables to schools across Wales, engaged with school children to teach them valuable cooking skills and redesigned school dinner menus across the country to include seasonal, local produce.

Welsh companies across a variety of sectors have been helped to build their knowledge, skills leading to increased innovation and greater adoption of fair work practices including adopting the Real Living Wage.

In transport, work is underway focussing on decarbonising public transport in Wales.

To see the full details of what the Foundational Economy project companies have achieved, please visit our Case Studies page here.  

Get in Touch