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The grass may be greener in Wales for New Zealand tech companies struggling to attract venture capital or investment cash from the Government.
The Welsh Development Agency is scouring the country for exportable Kiwi companies that could lend a hand updating the image of Wales as a centre for heavy industry, manufacturing and mining.
Technology developers, call-centres and telecoms providers are the businesses of choice for the agency, which has an annual budget of about $500 million to plough into business ventures, technology parks and generating interest in the Welsh economy.
Andrew Davis, agency executive vice-president for Asia-Pacific, said English cities were viewing Wales' lower overheads and cheaper labour with interest.
"People don't think of Wales and software together, but Wales has changed," he said.
"There's this area situated along the M4 corridor between Swansea in Wales and London which contains 40 per cent of all electronics companies in the UK. The likes of Cisco, Alcatel and Oracle are all there."
And for New Zealand companies interested in expanding their operations to bigger markets, Mr Davis said they could take advantage of venture capital, the agency's influence with local government and its support in the pursuit of business partnerships.
"There's no restrictions as such - it's a totally deregulated market. And there's nothing to stop the repatriation of profits."
Only one New Zealand company has set up shop in Wales with the agency's help. Tauranga-based Panztel markets a timesheet system that allows employees working away from the office to enter their work details into records software via a telephone keypad.
In May, the company set up a sales and support centre in Caldicot, South Wales, and expects within two years to employ 20 people who will service Panztel's European customers, which so far include a number of large local councils.
The company's director in Britain, Michael Smith, said the agency set Panztel up with a small grant, helped it to find premises and was contributing to marketing expenses.
"There's not much in the way of tax breaks or venture capital, but there isn't in New Zealand either. They've helped us in our marketing; they're chipping in to pay half the cost of us having a stand at a trade show to be held this year."
Mr Davis said the low NZ dollar meant it would be expensive for companies to shift to Wales entirely. Instead, the agency was encouraging them to set up sales and marketing arms, allowing access to a huge European market of 400 million consumers.
At home, the Government has been criticised over the level of support it gives to start-ups. But last month's Budget put aside $100 million to assist seed-stage businesses and the local venture capital industry.
Links
Panztel
Welsh Development Agency
