Mid Wales economy: Could start-up 'cluster' boost growth?
- Published
There are hopes a "cluster" of innovative businesses could form near Aberystwyth
Mid Wales is not an area associated with a "high-growth" start-up business culture.
But that's the idea behind a project at Aberystwyth University's brand new £40m AberInnovation campus, near the village of Penrhyncoch in rural north Ceredigion.
The BioAccelerate programme gives entrepreneurs and scientists the opportunity to compete for £60,000 to develop and launch their business idea.
AberInnovation chief executive Rhian Hayward said the idea is to create a "cluster" of businesses at the campus.
Unlike Silicon Valley in California, where tech giants like Apple, Google and Facebook are based, start-ups in "Sustainability Valley" will predominantly innovate in the field of sustainable food and drink.
Although on a completely different scale, Silicon Valley in California is home to a cluster of tech giants
Ms Hayward said she hopes it can create high-paid jobs in an area many young people leave to find better work opportunities elsewhere.
With workers earning an average of £504 per week before tax, wages in Ceredigion are among the lowest in the UK, ONS figures show.
As with other rural areas of Wales, the exodus of young people has stymied the growth of the local economy.
Ceredigion had the highest net outflow of people (377) of all rural areas of Wales last year, and of the 5,695 people who left the county to move elsewhere in the UK, almost half were aged 16 to 24.
Young people would like to stay in Ceredigion but many leave because of a lack of opportunities, Ms Hayward says
"If we don't do something like this, young talented people have to go outside the local area to progress, and also so many of our graduates from the university who would like to stay in the area can't because the high-quality jobs aren't here," she explained.
The BioAccelerate programme, now in its third year, takes on 12 participants who will receive mentoring to develop their ideas for 13 weeks.
The six strongest contestants will be awarded £10,000 to further develop their ideas in the second stage, which will last 10 weeks.
At the end of this stage, the six participants will pitch their ideas and two winners will be given £50,000 each to launch their business.
The campus is in Gogerddan, near the village of Penrhyncoch, about four miles north of Aberystwyth
"The idea behind the BioAccelerate programme is to encourage the people who are here in this part of Wales to act on their entrepreneurial ideas and get them some funding," said Ms Hayward.
"We hope that, over time, we will develop a community of businesses here in Aberystwyth that will grow and create well-paid jobs.
"It is already acting as a magnet for inward investment from outside Wales."
'The sky's the limit'
Abhishek Somani, pictured right, alongside chief operating officer and engineer Jai Lad
ArcitekBio is a small company based at the AberInnovation campus and was founded by Abhishek Somani.
The company makes xylitol, a low-calorie sweetener used as a healthier alternative to sugar in food and health products.
Xylitol is widely produced from sugar in a chemical process which requires high heat and pressure, making it both expensive and non-environmentally friendly.
Mr Somani and his team have developed a method where agricultural waste such as wheat straw is fermented to produce xylitol - a far cheaper and more environmentally friendly method.
The AberInnovation campus allows scientists and entrepreneurs to collaborate
AcitekBio, which already employs three people, is in the process of expanding and is looking to hire another member of staff.
Mr Somani said the xylitol market is worth more than $1bn (£771m) globally, and is growing at 7% per year.
"The sky's the limit," he added, explaining that the benefits of a cluster of businesses like AcitekBio would not only provide more higher-paid jobs in the area, but would also create jobs in the supply chain and in local services.
The new campus will also benefit from a new £8m train station in the nearby village of Bow Street when it is built.
"You can't really grow a cluster without the infrastructure in place so we were really pleased when the decision was taken to put that in place," Ms Hayward added.
"There are so many people who will use that connection from London and further afield.
"So many businesses are headquartered in Cambridge and London. If they are driving, that five-hour journey is dead time - they can't do anything - but on the train you can actually be productive."
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