With Askar Sheibani
CEO, Comtek Network Systems UK Ltd and chair, Deeside Business Forum
Following the bankruptcy of some major US banks such as Silicon Valley Bank, the resulting banking crisis in the US has raised alarms within the financial sector globally.
Some banks are under threat due to the rapid rise in interest rates. This nervousness within the banking sector has created a serious tightening of credit availability to small businesses.
Small businesses in the UK are already suffering from the radical increase in interest rates, inflation and energy costs. The recent trouble within the banking sector which has now resulted in the lack of availability of credit facilities which will harm our small businesses and the UK's economic recovery.
Read more: North Wales needs own metro mayor to be energy superpower
The real estate sector is also facing massive challenges with interest rates as their fixed-rate loans reach their maturity and the lease agreements come to an end. The increase in the number of empty commercial properties in our cities and towns is genuinely concerning for the property sector. We are also witnessing a rapid drop in house prices again due to the hike in interest rates and tightening of the availability of mortgages.
The UK economy can only succeed if small and medium size businesses can successfully navigate this economic storm.
Read more: Petition calls for trunk road decisions to be devolved to North Wales
All economists agree that small businesses are considered the growth engine for economic recovery. If the country allows them to suffer it will put back the UK's recovery for many years.
The UK and Welsh governments' support of the SME sector during the pandemic was impressive. It saved massive numbers of businesses and jobs. The vast majority of our small businesses were left with huge debts after the pandemic but have now embarked on recovery. Unfortunately, the recent energy crisis, the war in Ukraine and the avalanche of rapid high-interest rates have created very unwelcome conditions for small businesses.
Read more: Minister's visit to Wrexham Export Champion to celebrate its success
Now it's time that both the UK and Welsh governments start planning to make sure the SME sector is supported during this stormy period.
The UK Government's 'British Business Bank' and the Welsh Government's 'Development Bank of Wales' must gear up now to support the SME sector if they wish to save the economy and jobs.
Both Governments must also accelerate the investment and planned deployment of the country's infrastructure upgrade.
Welsh Government also must reverse the devastating decision to scrap road building in North Wales and allow construction to go ahead to stimulate the economy.
Read more: Meet the family duo behind eco-friendly coffee roasting company launched in Wrexham
The UK government must also allow Welsh Government and the local authorities in North Wales to plan and upgrade our ailing digital infrastructure. North Wales has been ignored for too long by both the UK and Welsh Governments and now it's about time to change course.
North Wales' economy is fundamentally vastly different from South Wales, with massive potential for economic growth. We have two large cities, Liverpool and Manchester, with their international airports right next to us.
There are two Freeports in Anglesey and Liverpool, accessible to our region and creating investment magnets for North Wales. If North Wales had more decision-making power, it could turn the region into the economic powerhouse of the UK.
A petition has been set up to devolve responsibilities and budgets for trunk roads in North Wales to North Wales, it can be found here - https://petitions.senedd.wales/petitions/245371
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here