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The foundational economy (FE) provides everyday goods and services. These include:

• care and health services
• food
• housing
• energy and utilities
• construction
• transport
• high street retailers
• tourism

Supporting the foundational economy is a key commitment in our Economic resilience and reconstruction mission.

The foundational economy accounts for:

• 60% of all Îʶ¦ÓéÀÖ headquartered businesses
• 51% of employees of the Îʶ¦ÓéÀÖ VAT registered businesses
• 47% of overall turnover in Wales

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Innovation in the foundational economy is vital for addressing challenges such as: 

• the climate emergency
• job creation
• developing future skills
• expanding transport
• rolling out digital technology
• creating a resilient food system

We work with local public and private organisations to deliver these essential services.

We aim to:

• strengthen the foundational parts of the economy, making them more resilient to external shocks
• support Îʶ¦ÓéÀÖ businesses to embrace fair work principles and create high-skilled jobs
• improve working conditions, ensuring fair work, skills improvement, and career progression
• sustain and grow locally-owned businesses to circulate profit and wealth in Îʶ¦ÓéÀÖ communities
• enhance access to foundational economy goods and services, improving wellbeing across Wales

Read about our objectives in the Foundational economy: mission statement.

Our approach aligns with the .

• : a local milkman became a key school milk supplier in Wales with help from Caerphilly Council.
• : growing local produce sustainably while creating jobs for adults with learning disabilities.
• : using recycled fibres from Bluestone National Park Resort in road and pavement construction.
• : providing fresh, nutritious meals, supported by our Backing Local Firms Fund to tackle food poverty.
• : promoting sustainable food sourcing within the NHS,supporting a resilient Îʶ¦ÓéÀÖ food sector.
• : helping public sector organisations overcome barriers using digital innovation.
• : collaborating to drive social, environmental, and economic change in the supply chain.
• : leading the reform of food procurement strategies in local supply chains.
• : updating food procurement strategies by using more local suppliers in the NHS.
• : promoting and supplying Îʶ¦ÓéÀÖ food produce to the public sector. 

• : contains case studies showing FE approaches and innovation, including examples from Velindre Health Board, Castell Howell and Can Cook
• (CEIC)
• Public sector procurement