This quote feels especially relevant today, as universities across Wales begin to play a new and increasingly pivotal role, not solely as educators, but incubators of innovation.

Fuelling innovation

Recent analysis by Universities Wales reveals a rise in startups emerging from Welsh universities, pointing towards a future where higher education institutions become central players in the country’s entrepreneurial ecosystem.

With nine universities spread across the nation, including Aberystwyth, Bangor, Cardiff, and Swansea, it appears these institutions provide more than just academic qualifications. Universities Wales found that Wales also has the highest proportion of student startups per capita in the UK, with estimations forecasting that approximately 2,000 new startups, with a predicted turnover of around £551 million, could be established for the Welsh economy by 2028.

This presents a major opportunity for the next generation of Welsh entrepreneurs. Wales is renowned for its speciality in eight key areas, from renewables to fintech, compound semiconductor manufacturing, cybersecurity, and more. As more startups are established, they can either reinforce this existing expertise, driving further success forward for the country, or they can aid in entering new markets.

A potential roadblock

The success of universities across the country is not to be undervalued; however, it is not without its constraints within the modern economy. In May 2025, results from the first phase of Universities UK’s Efficiency and Transformation Taskforce, a group designed to assist universities in becoming more financially sustainable and efficient, recorded how these institutions were grappling with a financial crisis.

Its research uncovered how 49% of universities had closed courses, 55% had consolidated selected course options, 46% had removed module options, and 18% had closed departments. While this Taskforce is reflective of the entire UK, not solely focused on Wales, it does highlight the strain that the sector is facing.

Earlier in 2025, Cardiff University announced plans to cut jobs and merge or reduce departments to combat growing financial pressures. Meanwhile, the University of Wales Trinity Saint David (UWTSD) revealed it would end undergraduate teaching at its Lampeter campus by September 2025, moving its humanities courses to Carmarthen.

Innovation is irreplaceable

While financial pressures remain, the entrepreneurial momentum is clear. According to the UUK Efficiency and Transformation Taskforce, 19% of universities have already reduced investment in research, with a further 79% considering additional cuts to stay afloat amidst a turbulent economy.

And yet, since 2014/15, over 3,000 companies have emerged with the support of Welsh universities. This has helped drive an over 100% increase in startup turnover across the higher education sector, with external investment into these ventures reaching almost £90 million. Additional cuts to funding threaten the innovation ecosystem throughout Wales, limiting the continued success of startups across the country.

These small businesses are not solely tied to the universities, but possess larger roots that extend throughout Wales. New businesses create jobs, encourage growth in the community, incentivise further entrepreneurship to begin and aid in making the nation more economically stable and resilient.

Is collaboration the answer?

Organisations such as Tramshed Tech encapsulate what’s possible through community integration in the technology sector. This tech hub provides connected workspaces, business support programmes and specialist skills training, which sparks the creative fire of potential growth within tech, digital, and creative businesses throughout Wales.

One of the most significant advantages of tech hubs is their ability to bring together individuals from diverse backgrounds and industries. They encourage businesses to embrace new advancements, transitioning from a mindset of reluctant change to one where creativity and ingenuity are at the heart of their guiding principles.

Tramshed Tech hosts its respective entrepreneurship initiatives, which are accessible to students throughout Wales. However, Tramshed Tech is just one example – innovation thrives on collaboration. As one partner succeeds, another grows, feeding a cycle of shared value and reinvestment into the Welsh economy.

To answer the initial question, are universities the future of Welsh startups? They certainly act as key accelerators of growth and business ideation. However, they must also work with their students, communities and partners to maximise on possibilities, navigating a tough and changing financial climate, while delivering the best environments that they can for their students.

There is the famous saying that “it takes a village to raise a child”; is the same true for the startup world? If universities collaborate with local governments, organisations and communities, will the future of new small businesses look even brighter? It’s impossible to state for sure; however, all signs point towards it being true.

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