Cwmpas’ Dr Dan Roberts explains how.
One of the few areas of agreement across Wales’s political spectrum is the need for a stronger economy. While different parties may disagree on who is to blame and how best to fix things, all acknowledge that building a stronger economy is key, and it will be central to manifestos for the Senedd election taking place in May 2026.
Some approaches will stress the importance of generating traditional growth. Wales’s position towards the bottom of the GVA per capita league tables in the UK has long been a source of frustration. Others will argue that growth alone should not be the ultimate aim, and that wellbeing, resilience and fairness should be prioritised over narrow measures of GDP.
At Cwmpas, we believe there does not need to be a choice between the two perspectives. A proactive commitment to grow Wales’s co-operative and social business sector can deliver economic growth that is both inclusive and sustainable. These businesses anchor wealth in communities, ensure that decisions are made locally, and put people and the planet alongside profit. In short, they are the best route to creating prosperity that is felt by everyone.
A proactive commitment to grow Wales’s co-operative and social business sector can deliver economic growth that is both inclusive and sustainable.
The role of Cwmpas and the social business movement
Cwmpas has worked for over 40 years to support communities across Wales to build a fairer, greener economy. As a co-operative ourselves, we are committed to the principle that the economy should work differently: tackling inequality, empowering communities, and using business as a force for good.
We provide expert business advice, digital inclusion support, consultancy, and help with community-led housing and care solutions. What unites all of our work is a commitment to showing that social enterprises, co-operatives, and community-owned organisations can innovate, deliver services, and strengthen local economies in ways that traditional business models often cannot.
These models take many forms – including community benefit societies, employee-owned businesses, community interest companies, and multi-stakeholder co-operatives – but they are united by shared values. Whether through democratic ownership, profit reinvestment, or their commitment to the “triple bottom line” of people, planet, and profit, they put positive impact at the heart of their operations.
Wales already has a thriving co-operative and social business economy and the numbers tell a compelling story. According to the 2025 Co-operative and Mutual Economy report, the Welsh co-operative sector generates £500 million in income, supports over 500 co-operatives, and counts around 300,000 members. Wales leads the UK in the growth of new co-operatives, with 2.6 new co-ops created for every 100,000 people. At the same time, our mapping of the wider social business sector – which will be published in full at an online briefing session on October 21 st – shows around 3,100 organisations, an increase of 13% since 2022, with a turnover of at least £3.5 billion.
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These are not marginal numbers. They demonstrate that social businesses are already a major contributor to our economy, yet the potential for further growth is clear.
Why social businesses matter more than ever
Social businesses combine commercial success with social and environmental value. They are embedded in their local communities, ensuring that wealth circulates locally and opportunities reach those furthest from the labour market. Unlike businesses that may relocate to maximise profit, social enterprises and co-operatives stay rooted in place, providing stability even in times of economic uncertainty.
They also lead the way in creating fair work. Eighty-four per cent of Welsh social businesses pay the living wage to all employees, far higher than the UK private sector average. They are also at the forefront of Wales’s just transition to a net zero economy, embedding sustainability into their business model.
The Community Impact Initiative, winner of the 2024 Social Enterprise of the Year award, illustrates what this means in practice. By renovating derelict homes to high environmental standards, training people furthest from the labour market, and reinvesting profits into further community projects, it creates inclusive growth that delivers real benefits for people, places, and the planet. This is growth that builds communities.
Social businesses combine commercial success with social and environmental value. They are embedded in their local communities, ensuring that wealth circulates locally and opportunities reach those furthest from the labour market.
How the next Welsh Government can unlock sustainable growth
To realise the full potential of the sector, the next Welsh Government must put social businesses at the heart of economic development. In our manifesto, we set out five key priorities to make this happen:
- Invest in specialist support. Over two-thirds of social businesses want dedicated advice tailored to their values, governance structures, and social impact goals. This must not be lost within mainstream business support.
- Create a Co-operative Development Hub. This capacity would proactively identify growth opportunities, strengthen supply chains, and provide educational resources, becoming a catalyst for scaling up the co-operative economy.
- Double the number of employee-owned businesses. Wales is close to having 100 employee-owned firms, up from 34 at the point of the 2021 Programme for Government. Doubling again would safeguard jobs, improve productivity, and anchor businesses in communities.
- Reform public procurement. By setting ambitious targets for contracts awarded to social enterprises, co-operatives, and employee-owned firms, Welsh Government can ensure public spending delivers maximum social and economic value.
- Make social business growth a national indicator. Embedding it within the Well-being of Future Generations framework would ensure ministers and policymakers treat the sector as central to economic strategy.
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Backing a stronger, fairer and greener Welsh economy
The evidence is clear: co-operative and social businesses are not fringe actors but central drivers of a fairer, greener and more prosperous economy. They deliver growth that is inclusive, sustainable, and rooted in communities. By backing them with the right policies, political parties and the next Welsh Government can ensure that prosperity in Wales is truly delivered and felt by all.
