Introduction to Context
Wales’s Foundational Economy, encompassing everyday essential services such as care, housing, food, transport and energy, has long experienced structural challenges, particularly among smaller organisations facing capacity constraints, limited innovation infrastructure, and barriers to adopting circular and fair‑work practices.
These challenges are particularly acute among SMEs, which often lack access to structured learning and collaboration networks. FEIN was created to address these systemic barriers by providing a practical, regionally rooted framework that aligned with the Well-being of Future Generations Act and the Welsh Government’s ambitions for Net Zero and a fairer economic landscape.
The Approach
The Circular Economy Innovation Communities programme (CEIC Programme) is a two-day experiential workshop that introduces design thinking and circular‑economy principles. FEIN engaged 34 organisations from the Cardiff Capital Region and Swansea Bay Area through a structured programme of:
- Experiential workshops
- Mentoring and Specialist Support
- Network Building
- Peer‑learning activities with Practical Planning and Innovation Tools
The programme was enriched by collaboration with partners such as WRAP Cymru and Cwmpas, who provided technical guidance on procurement, marketing, resource efficiency, and fair‑work implementation. Participants developed innovation, HR, and Net Zero action plans tailored to their organisational context, while two new regional networks, in Cardiff and Swansea, were established to support ongoing collaboration. Participants consistently reported that the interactive format deepened understanding and translated effectively into workplace practice.
Impact
Between 2023 and 2024, 34 organisations joined the program Including 17 private SMEs, 7 charities, 5 community organisations, 4 social enterprises, and 2 public‑sector departments. During their participation in this program, Participants, 17 from organisations in the Cardiff region and 7 in the Swansea Region developed:
- Clean Growth/Net Zero plans
- Fair Work/HR development plans
- Innovation plans
The programme generated meaningful improvements in innovation confidence, sustainability practices, and workplace culture.
- 80% of participants reported increased innovation skills and understanding of circular and foundational economy principles
- 77% reported improved circular‑economy knowledge; 72% improved innovation knowledge.
- 94% of participants recommended the programme
- 55% of organisations adopted the Real Living Wage, with a further 30% planning to do so, demonstrating a major shift toward fairer work practices
The development of multiple innovations, Net Zero, and fair‑work plans provided organisations with practical roadmaps for future action. This action has contributed to an increase in Fair Work adoption, an increase in innovation-active SMEs, and a Decrease in carbon footprints across participating SMEs. FEIN also strengthened relationships between SMEs and public‑sector partners, contributing to a more connected and resilient regional ecosystem.
Challenges
Some SMEs faced limited capacity to fully engage with circular‑economy practices or sustain innovation activity beyond the workshops. While the programme was praised for its inspirational style, a few participants found aspects of the content academic in tone. Regional economic disparities also shaped the readiness of organisations to adopt new practices. Nonetheless, the structure of the programme, particularly the mentoring and peer‑learning elements, helped organisations overcome many of these obstacles.
Looking Ahead
Evaluation findings suggest strong potential for scaling the FEIN model. Many participants expressed interest in continued support, further funding opportunities, and additional collaboration. Future iterations of the programme may focus on widening accessibility, refining delivery methods, and deepening support for circular‑economy implementation.
The FEIN model has demonstrated clear value as a driver of inclusive, sustainable economic development, deeply aligned with the Future Generations Act and Wales’s broader ambition for a resilient foundational economy.
