Welsh Institute for Sustainable Environments (WISE) Network

What is an Objective 1 Area?

An Objective 1 Area is one where prosperity, measured in Gross Value Added (GVA) per head of population, is 75% or less of the European average.
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What is the Objective 1 area in Wales?

This is set out in the map below and comprises of the following counties: Anglesey, Conwy, Denbighshire, Gwynedd, Ceredigion,  Carmarthenshire, Pembrokeshire, Neath Port Talbot, Swansea, Bridgend, Rhondda Cynnon Taff, Merthyr Tydfil, Blaenau Gwent, Caerphilly and Torfaen.

Apprentices, students with vocational training contracts, and staff whilst on maternity of parental leave periods should not be included in headcount data.

An SME must be what is known as an autonomous enterprise, not a partner or a linked enterprise.

A company is a partner enterprise where more than a 25% stake is held by another company or where it holds more than a 25% stake in another company.

That said, a company may still be an SME where more than a 25% stake is held by investors such as universities, business angels, venture capital companies, and very small local authorities (investors must not be linked enterprises and further conditions may apply).

Linked enterprises include those with a majority of the shareholders’ or members’ voting rights in another company, or with the right to appoint or remove a majority of the members of the administrative, management or supervisory body of another company. Linked enterprises can also include those which have these characteristics via a natural person or group of people acting jointly. Note that in many cases, an enterprise cannot be classified as an SME if 25% or more of the capital or voting rights are directly or indirectly controlled by one or more public bodies.

This definition encompasses social enterprises as well as both VAT-registered and non VAT-registered companies (though the base-line data given may refer only to VAT-registered companies).