The problems facing Pembrokeshire Business Initiative have been raised in the Welsh Assembly by local AM Paul Davies.
The company, which offers advice and support to start‐up and existing businesses in the county, has had to lay off a third of its workforce after delays in the distribution of European funding.
"It is vital that organisations that support small businesses getthe help that they deserve," the Preseli Pembrokeshire AM told Rhodri Morgan during First Minister's questions.
"Unfortunately, Pembrokeshire Business Initiative (PBI) is in the process of substantially reducing its staff numbers because of a shortage of funds," he added.
Convergence funding, which replaced the Objective One grants, was due to be awarded in this year but the Welsh Assembly Government has delayed many of the handouts until next year.
This has led to a hold up in direct funding for PBI and also means the company is unable to bid for Convergence‐funded
projects administered by other organisations.
"PBI offers essential advice to local businesses to help them to develop," added Mr Davies."Its current financial situation arose because it was unable to bid for convergence funding, and, as we all know, companies should have been permitted access to that money long before now."
