Foundational Economy

Supporting the Foundational Economy in Wales

A thriving Foundational Economy is essential for a resilient and prosperous Wales, with 60% of Welsh businesses and over half the workforce involved in it. The Foundational Economy encompasses the everyday goods and services we all rely on, spanning sectors such as care and health, food, housing, energy, construction, transport, retail, and tourism. Business Wales is here to support your business within these essential sectors, providing resources to help foster innovation and sustainability.

Welsh Government is committed to strengthening the Foundational Economy in Wales and has set out its objectives through a Foundational Economy Mission Statement.

Key foundational economy objectives include:

  • Identifying and supporting opportunities for more jobs, better jobs, greener jobs and promote fair work, including good pay, representation, security, and opportunity to progress.
  • Increasing ‘household liveability’ by facilitating rising wages through promotion schemes such as Real Living Wage, helping increase the affordability of foundational essentials to support universal access to high quality goods and services.
  • Building local supply chains to keep people, skills and wealth in Wales.
  • Contributing towards addressing the climate and nature emergencies.
  • Encouraging collaborative innovation and experimentation to improve basic goods and services, especially where these build resilient social infrastructure, such as through cooperative and community-owned projects.

Why Focus on the Foundational Economy?

The Foundational Economy is integral to Wales’ economic strategy, as it represents 47% of total business turnover in Wales. It also addresses big challenges that affect us all, like tackling the climate crisis, creating local jobs, developing skills for the future, and building strong transport infrastructure. Plus, it plays a big role in building a resilient food system and strengthening local supply chains, which are key to supporting Wales’ economy and environment.

Business Wales, in collaboration with Foundational Economy experts, provides sector-specific support to help businesses excel in these areas. Our initiatives include fostering local supply chains through "Meet the Buyers" events, aligning with the Well-being of Future Generations Act 2015, and supporting food supply improvements within the public sector. By participating, your business can access tailored resources to grow and make a positive impact on the Welsh economy.



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