Innovation and investment: Insights from MHA's Insider roundtable

We recently launched MHA's Insider roundtable series with a highly engaging discussion focused on innovation and investment. The session brought together a diverse group of business leaders, offering valuable insights into strategies for fostering innovation, securing investment, and streamlining growth processes. The discussion highlighted key challenges and opportunities for businesses across Wales and beyond.

Fostering a culture of innovation

One of the key themes that emerged was the importance of embedding innovation into a company's culture, rather than treating it as a rigid process. Many of the business owners in the room had success stories to share, but the common thread was their ability to embrace new ideas and foster creativity within their teams. One participant emphasised the importance of encouraging staff to voice ideas without the fear of criticism or dismissal. Creating this kind of open, feedback-driven environment allows innovation to grow organically, positioning companies to evolve and adapt in an ever-changing market.

Securing investment

We explored the challenges businesses face when seeking investment for innovative projects, with several participants sharing stories of being turned down for funding by banks or alternative lenders despite strong business potential. This was often due to not meeting rigid criteria or a lack of familiarity with financial jargon. A recurring frustration was the complexity of regulations, and the bureaucratic red tape involved in securing funding. Simplifying the process was seen as crucial for fostering innovation. One participant highlighted this issue by recounting an experience of being denied a grant simply because one box wasn’t ticked, a problem that clearer guidance or more flexibility could have easily resolved. The discussion emphasised that while business owners are experts in their fields, they may struggle to navigate the complexities of financial systems.

This is where having the right network of advisors comes into play. Participants emphasised the value of working closely with trusted accountants, financial advisors, and solicitors who understand both the local market and the broader financial landscape, building personal relationships now, for thriving partnerships tomorrow. Having a clear ‘runway’, a strategic roadmap outlining a company’s current position, goals, and the resources needed to get there is critical. 

Leading with ambition: Success stories and industry trends

The roundtable was filled with inspiring success stories, many of which demonstrated how innovation is not limited to Wales or the UK. Several businesses shared how they had expanded internationally, seizing opportunities beyond their local markets.

Additionally, there was significant discussion around the role of emerging technologies, particularly AI, in driving business innovation. AI and other technologies are not seen as replacing jobs, but as tools that allow businesses to operate more efficiently, freeing up resources and enabling staff to focus on higher-value tasks. Staying ahead of industry trends, whether it’s AI, ESG (Environmental, Social, and Governance) practices, or sustainability is critical for businesses looking to remain competitive.

Advice for businesses: Building the right structure and network

To foster innovation and secure investment, the key takeaway is clear: businesses need a solid structure in place. This includes regularly revisiting business plans and ensuring they have the right contacts to support their goals.

Innovation must be more than a process, it should be woven into the fabric of a company, allowing it to adapt and grow naturally. Equally important is having a clear financial strategy. Understanding where your business is on its journey, identifying where support is needed, and knowing when to seek funding are crucial steps.

For businesses looking to secure investment, my advice is simple: consult the experts. Just as you would speak to a mortgage advisor when buying a house, seeking financial advice for your business is essential. Whether you're exploring grants, term loans, or venture capital, knowing your options and having a team to guide you can ease the complexities and reduce the stress of the process.

Overcoming regulatory hurdles

There was a strong consensus that regulatory frameworks need to evolve to support innovation rather than stifle it. R&D tax credits, for instance, were praised as a valuable tool, but the application process was described as cumbersome. Simplifying these processes and making them more accessible to smaller businesses would encourage more companies to innovate and grow.

Looking ahead: Supporting businesses

As the roundtable concluded, the conversation turned to how businesses can better support each other and promote their success stories. It was inspiring to hear how many Welsh companies are already making waves internationally, with one participant sharing how their business, despite being Wales-based, has become a leader in its field in the United States. This highlights the global opportunities available and the importance of not being blinkered by local or national boundaries.

Our first roundtable on Innovation and Investment underscored the tremendous potential for businesses in Wales to innovate and grow. By fostering a culture of innovation, building the right support networks, and staying ahead of industry trends, companies can overcome the challenges of securing investment and expand both locally and internationally.