Is the rural economy taking a lead on jobs and growth? Or is it placing the countryside under unprecedented pressure? Jessica Sellick investigates.

According to the Department for Environment, Food and Rural Affairs (Defra), there are 505,000 businesses in rural areas - around 28% of all businesses in England.

Rural businesses are just as diverse as those in urban areas and contribute more than £211 billion to the UK economy but many have untapped potential.

With ‘economic growth’ remaining a government top priority, how are rural areas contributing and benefitting from growth? Jessica Sellick investigates.

The rural economy is dominated by entrepreneurs, self-employed people, ‘job jugglers’, home businesses and small and micro enterprises. While many people think of land management industries (e.g. farming, food, forestry) and tourism; in practice the rural economy is multi-layered and multi-local – reaching far beyond this into arts and culture, manufacturing, retail, professional and business services.

The mix of business size, sectors and performance also varies – with some firms likely to be found close to rural towns and others found in sparser areas. All have an important role to play in creating and sustaining employment and safeguarding the future of rural communities. Central government has introduced a range of measures to stimulate rural economic growth – from the Rural Growth Network Pilots to broadband and mobile infrastructure projects and a tourism fund. But what kind(s) of growth are we driving for?

Not all growth is good and not all growth is bad, therefore we need to consider what kinds of potentially valuable growth we want in rural areas (and ‘valuable’ to whom). And are we offering rural residents better opportunities to work in their local communities in this drive for growth? I offer three points.

Firstly, there are a range of benefits to running a business in the countryside. At a recent ACRE conference ‘why rural matters – the case for investment’, businesses that had established and grown in the countryside or relocated there shared their positive experiences: from awe inspiring landscapes and improved quality of life through to realising being rural is a real asset, giving their brand’s exposure across the world.

This desire to ‘shout loud and proud’ about being in the countryside has led to ‘rockthecotswolds’, a business led initiative celebrating how cool the Cotswolds is and the companies that are there creating, designing and selling goods to a truly global market. At the same time, reductions in public spending have illuminated how rural communities are pioneers in providing local services, overcoming access and delivery difficulties to meet demand. Purple zebra is a social enterprise established by Rural Community Action Nottinghamshire (RCAN) which provides IT services to small and medium sized businesses.

Bedfordshire Rural Communities Charity (BRCC) has established a not-for-profit community vineyard to provide horticultural therapy as well as bringing Ridgmont Station on the Marston Vale line back into productive use as a heritage centre, café and office rental space. In all of these examples the RCC’s have recognised the social value of enterprise. These developments also fit with the emerging perspectives of funders – with the Big Lottery Fund’s ‘your voice, our vision’ consultation calling for residents to have a stake in their community.

Here rural dwellers are not viewed at a disadvantage and in need but are being asked what they want to ‘do’ and what skills they bring in making a funding application. This is part of an approach to move away from funding single interventions to instead forming integrated and collaborative partnerships to solve problems.

Secondly, amid these entrepreneurial businesses and communities there are challenges in living and working in a rural area when compared to locating in an urban area. For RSN readers these are well rehearsed and ongoing: the need to close the ‘digital divide’; where the debate is not just whether ‘speed’ should be prioritised over ‘access’ but finding out from BT (other providers or Local Authorities) where the final 10% are, implementing innovative local solutions to reach the final mile and addressing issues such as cost and affordability.

In practice, some rural businesses have told us that to remain in the countryside they have to spend £6,000-£8,000 a year for adequate connectivity. With the government committed to being ‘digital by default’, in November 2014 the Environment, Food and Rural Affairs (EFRA) Select Committee launched an inquiry into broadband coverage and digital only services.

Other challenges include recruiting and retaining qualified staff, for even if you offer excellent pay and conditions your workforce also requires housing, access to services, transport, leisure and entertainment facilities. The availability of parking (for staff and clients); red tape and planning requirements have also been cited.

Thirdly, how do we prepare for the future? It seems all-too-often interventions do not keep up with the pace of change. How can we ‘rural proof’ and ‘future proof’ policy and decision making? Businesses and communities are clearly innovating and developing in the countryside in spite of or as well as any support that is available from government, Local Enterprise Partnerships or Local Authorities.

While there are many good examples of instances where LEPs, UKTI or other bodies have helped rural businesses (to upskill the workforce or export to new markets etc.), often what support is needed falls below their radars. Some businesses have suggested ‘one stop shops’ for start-ups and established firms to can come together around workspace, infrastructure, mentoring, grant funding or to speak to a marketing/HR/legal experts etc.

These are not intended to be ‘talking shops’ but mutually supportive for businesses wanting to thrive in the countryside. With ‘city deals’, combined authorities forming to cooperate in strategic areas such as transport and economic development and support in England for more powers to be devolved to local areas, where is ‘rural’ in some of these debates?

To explore these issues further, the RSN is organising a seminar on ‘local economies’ on 3 December 2014. Hosted by the University of Gloucestershire in Cheltenham, speakers include: Stewart Barr (University of Exeter), Helen Royall (Transition Stroud), Elizabeth Skinner (Society of Local Council Clerks) and a representative from Tewkesbury Borough Council.

Places are limited to 50 and there is a modest charge of £35 plus VAT to cover venue costs, lunch and materials. For more information and to book your place, please contact Bethan at the RSN by email [email protected] or telephone 01822 813693.

Jessica is a researcher/project manager at Rose Regeneration; an economic development business working with communities, Government and business to help them achieve their full potential.Jessica has undertaken a variety of projects on local economies; including undertaking socio-economic research for the Cotswolds Conservation Board, preparing a rural economy evidence base for Leicester & Leicestershire Enterprise Partnership, and producing rural growth strategies for Mansfield & Ashfield, Gedling, and Breckland & South Holland Councils. More information about the RSN’s work on economy can be found here. Jessica can be contacted by email [email protected]or telephone 01522 521211. Website: http://www.roseregeneration.co.uk Twitter: @RoseRegen