Firms bucking the economic trend

By Kevin Leonard
BBC News

Saj Jethwa hopes to expand his business at Newport's Estuary Court

While job losses blamed on the economic downturn have dominated the headlines, there are businesses in Wales trying to buck the trend.

New firms are still starting up or expanding despite the doom and gloom over trading conditions.

The £3m Estuary Court business park in Newport, which recently filled its last available unit, has attracted 18 businesses since opening in the summer.

Newport businessman Simon Williams, managing director of Storage Giant which owns and manages the site, had the idea of setting up Estuary Court in 2004 when the economic climate was far more favourable.

But he said more practical issues, such as the high-pressure gas mains that was running through the middle of the land, were more of an obstacle than the economic climate.

"I never had any doubts I was doing the right thing, but it's surpassed our expectations," he said.

We had a long hard think about it but we were determined to stick to our business plan because it's the next step in the direction we were looking to go in Leslie Herman, Beerrunner

"It was always something I was quite comfortable funding but I didn't think we would let it all so quickly."

The business park has a diverse range of tenants, including a pet grooming business, a catering company, an embroidery firm and one business, Beerrunner, that delivers party essentials such as snacks and alcohol to your door.

Tough decision

Beerrunner is a company owned by two Americans, Leslie Herman and Joel Hoepstine, which started in Cardiff in 2006 but expanded to Newport a couple of months ago.

Ms Herman admitted it was a tough decision to expand during an economic downturn.

"We had a long hard think about it but we were determined to stick to our business plan because it's the next step in the direction we were looking to go in," she said.

While the Cardiff side of the business is established and doing well, she said Newport was so far proving more of a challenge.

"It's been tough. The concept is really well received but the climate just seems to be getting worse every single day and it doesn't feel good," said Ms Herman, who previously worked in marketing and communications.

"It's not as positive as it was when we kicked off in Cardiff but we're very proactive and we're determined."

I never had any doubts I was doing the right thing but it's surpassed our expectations Simon Williams, Storage Giant

Estuary Court is also home to two businesses, Gwent VW and SJ Concepts, which are side-by-side and owned by members of the same family.

While Gwent VW, which sells car parts and accessories, has been established for almost 25 years, SJ Concepts is a new business owned by 25-year-old Saj Jethwa.

Mr Jethwa, from Newport, originally envisaged just providing audio and security systems for cars but decided to offer car servicing too.

"With the current current climate you can't just specialise in one thing," he said.

He admitted the economic situation worried him but said he was determined to make a success of the business.

"It was a concern because in the back of my head I knew I was going to invest a lot of money," he said.

"But it started off and it's worked fantastically well. From three people in one business, we've now got seven people and two businesses.

"People talk every day about the economy being bad and the credit crunch, but the work is out there and we seem to be doing okay."