Wales’s next government must put the country’s 200,000 small businesses at the heart of its strategy in order to protect jobs, communities and the Welsh economy, the Federation of Small Businesses (FSB) has warned.

It comes as the UK’s largest small business group launches its Senedd election manifesto ahead of the hotly-contested May elections, which will decide who runs Wales for the next five years.

The manifesto sets out how tackling rising costs, regulatory burdens, skills shortages and the decline of the high street could unlock Wales’s small business potential.

FSB Wales is now calling on all parties to make the 2026-2031 Senedd term the Small Business Term, as new research reveals that 65 per cent of Welsh business owners say passion, not profit, is their main motivation for running a business.

The manifesto is built around five pillars:

1. Putting Small Businesses at the Heart of Government - Introducing a new Economic Development (Wales) Bill as well as a fresh economic strategy, and creating a dedicated agency to make sure SMEs are considered in every government decision.

   
   

2. Reducing the Cost of Doing Business – Reforming business rates, mandating a 30-day payment term on public contracts, cutting red tape by 25 per cent, and better digital support for SMEs.

   
   

3. Revitalising High Streets and Communities – Creating a business rates multiplier for retail, hospitality and leisure, more funding for town centres, taking action on anti-social behaviour and creating a Planning Act to revive high streets.

4. Real World Productivity - Bigger infrastructure investment, better access to finance, creating a Minister for Digitalisation and establishing a new Net Zero Business Wales scheme to increase efficiency and sustainability.

   
   

5. Successful People - Building a start-up strategy, increasing apprenticeship funding, creating a leadership development and creating an employment incentive to address skills mismatches and build resilient workforces.

   
   

John Hurst, Chair of FSB Wales, said:

“This is a manifesto for small business by small business. We must put small business at the very heart of the next Welsh Government, rejuvenate our high streets, enable businesses to thrive, reduce costs and support the wider workforce."

“From an innovative Economic Development Bill for small business growth to targeted rates relief and making sure businesses can get the skills they need, our proposals will empower SMEs to overcome barriers and thrive."

“As we approach the 2026 Senedd election, we urge all political parties to adopt these measures to unlock Wales's entrepreneurial potential for resilient communities and a prosperous future."

“Our members across Wales have created this manifesto and it is a direct reflection of their current situation and challenges and also highlights what is needed for them to continue to support the communities in which they operate, and the wider Welsh economy.”

About FSB

FSB is a non-profit, non-party-political grassroots business organisation that provides its members with a wide range of vital business services. These include advice, financial expertise, legal support and a powerful voice heard in Government for over 50 years.