99thth RURAL ENTREPRENEURSHIP RURAL ENTREPRENEURSHIP CONFERENCE: Observations, CONFERENCE: Observations,

Themes , ImplicationsThemes , Implications

David SmallboneDavid Smallbone

Professor of Small Business and Professor of Small Business and Entrepreneurship Entrepreneurship

SSmall Business Research Centremall Business Research Centre

Kingston UniversityKingston University

IN WHAT SENSE RURAL?IN WHAT SENSE RURAL? International papers from Portugal, Poland, Pakistan, India, International papers from Portugal, Poland, Pakistan, India,

China, Mexico, Zimbabwe emphasise the heterogeneity of China, Mexico, Zimbabwe emphasise the heterogeneity of rural environments, although in country differences can rural environments, although in country differences can also be considerable also be considerable

In UK, peripheral rural areas are characterised by distance In UK, peripheral rural areas are characterised by distance from major markets; depopulation; infrastructure from major markets; depopulation; infrastructure deficiencies; high dependence on land-based activities deficiencies; high dependence on land-based activities

More central areas typically have higher population density; More central areas typically have higher population density; closer proximity to markets; less dependency on closer proximity to markets; less dependency on agriculture; a more diversified economic base agriculture; a more diversified economic base

In developing countries rural areas are typically the poorestIn developing countries rural areas are typically the poorest

RURAL HETEROGENEITY in OECD members urban-rural contrasts do not always show rural areas to

be disadvantaged.

However, key challenges are said to include declining employment opportunities in primary industries an ageing population difficulties in maintaining a critical mass of services

Significant heterogeneity raises question of what constitutes rurality- population density; % of population living in rural communities size of urban centres (OECD 2005)

CONTEXTCONTEXT

Growing recognition of role of context in entrepreneurship Growing recognition of role of context in entrepreneurship studiesstudies

““tendency to underestimate influence of external factors & tendency to underestimate influence of external factors & overestimate internal/personal factors when analysing overestimate internal/personal factors when analysing entrepreneurial behaviour” (Gartner, 1995)entrepreneurial behaviour” (Gartner, 1995)

The circumstances, conditions, situations or environments The circumstances, conditions, situations or environments that are external to the phenomenon under study and that are external to the phenomenon under study and enable or constrain itenable or constrain it

Context is important for understanding when and how Context is important for understanding when and how entrepreneurship happens and who becomes involvedentrepreneurship happens and who becomes involved

CHANGE AND CONTINUITY IN CHANGE AND CONTINUITY IN THE CONFERENCETHE CONFERENCE

Broader rural policy perspectivesBroader rural policy perspectives

marked increase in international papersmarked increase in international papers

Broad themes: rural communities, enterprise and sustainable Broad themes: rural communities, enterprise and sustainable development are fairly consistent, with an increase in the number development are fairly consistent, with an increase in the number of papers on green topicsof papers on green topics

Tourism and social/community enterprise ever presentTourism and social/community enterprise ever present

Increasing number of agriculture related papers reflecting the Increasing number of agriculture related papers reflecting the growing recognition of farming as a business and farm growing recognition of farming as a business and farm diversification as almost the normdiversification as almost the norm

Substantial growth in papers using case study and qualitative Substantial growth in papers using case study and qualitative methodsmethods

KEY THEME I – RURAL KEY THEME I – RURAL COMMUNITIESCOMMUNITIES

Alleviating rural poverty – Alleviating rural poverty – evaluation of a rural welfare scheme in China (Xiaolin Wu et al); evaluation of a rural welfare scheme in China (Xiaolin Wu et al); Diaz-Pichardo et al – from farmers to entrepreneurs (Mexico).Diaz-Pichardo et al – from farmers to entrepreneurs (Mexico). Masiya et al show that even modest increases in income can Masiya et al show that even modest increases in income can

make a difference at the household levelmake a difference at the household level

Defining ruralityDefining rurality Gary Bosworth-uses case study to deconstruct concept of rural Gary Bosworth-uses case study to deconstruct concept of rural

business. Operating in a rural area; serving a rural population. business. Operating in a rural area; serving a rural population. Argues that policy support should target businesses Argues that policy support should target businesses contributing to rural societycontributing to rural society

Annabela Dinis reviews various definitions-functional, Annabela Dinis reviews various definitions-functional, ecological etcecological etc

KEY THEME II– RURAL ENTERPRISEKEY THEME II– RURAL ENTERPRISE

Interdependencies within the rural economy Interdependencies within the rural economy (Colette Henry et al)(Colette Henry et al)

Are rural businesses really different from urban Are rural businesses really different from urban firms?- Sanders et al show rural firms are similar firms?- Sanders et al show rural firms are similar to urban firms in website quality. Assessment tool to urban firms in website quality. Assessment tool can help managers focus on key issues-can help managers focus on key issues-particularly important for rural firmsparticularly important for rural firms

KEY THEME III – SUSTAINABLE KEY THEME III – SUSTAINABLE RURALITYRURALITY

Social enterprise & sustainable rural communitiesSocial enterprise & sustainable rural communities (Steinerowski) – a critical perspective emphasing (Steinerowski) – a critical perspective emphasing

contextual factorscontextual factors (Lyon & Munoz) demonstrated contribution of social (Lyon & Munoz) demonstrated contribution of social

enterprises to rural developmententerprises to rural development (Jacuniak-Suda) social ent. in the Western Isles (Jacuniak-Suda) social ent. in the Western Isles

Feasibility of community leadership for rural energy projects - Feasibility of community leadership for rural energy projects - concluded that context specific circumstances and factors concluded that context specific circumstances and factors enabled successful voluntary leadershipenabled successful voluntary leadership

Implementation gap in terms of policy (Galloway et al) Implementation gap in terms of policy (Galloway et al) Ecotourism cases in Scotland, Portugal & GreeceEcotourism cases in Scotland, Portugal & Greece

RURAL POLICY AT THE RURAL POLICY AT THE CROSSROADSCROSSROADS

Will rural interests be adequately Will rural interests be adequately represented in LEPS?represented in LEPS?

Who will be responsible for rural Who will be responsible for rural proofing? proofing?

Who will fund and deliver business Who will fund and deliver business support?support?

EnterprisingSME

sector

GDPgrowth

Productive ‘churn’

Innovation

Competition Productivitygrowth

Employmentgrowth

HOW CAN ENTREPRENEURSHIP AFFECT HOW CAN ENTREPRENEURSHIP AFFECT ECONOMIC DEVELOPMENT AND ECONOMIC DEVELOPMENT AND

COMPETITIVENESSCOMPETITIVENESS??

OECD PRIORITIES FOR FUTURE OECD PRIORITIES FOR FUTURE RURAL POLICY IN ENGLANDRURAL POLICY IN ENGLAND

Devolve policy design & offer more flexible funding locallyDevolve policy design & offer more flexible funding locally

Rationalise the number of policy agentsRationalise the number of policy agents

Look for market solutions, with government adopting a strategic Look for market solutions, with government adopting a strategic rolerole

Improve integration of maintreaming and rural proofingImprove integration of maintreaming and rural proofing

Strengthen rural economy with better joined up policies eg Strengthen rural economy with better joined up policies eg housing, planning, economyhousing, planning, economy

Expand rural connectvityExpand rural connectvity

RESEARCH-POLICY RESEARCH-POLICY INTERFACEINTERFACE

Policy makers often do not value research, which Policy makers often do not value research, which they view as ‘academic’ rather than practicalthey view as ‘academic’ rather than practical

Researchers often fail to communicate their results Researchers often fail to communicate their results to policy makers in an effective and accessible to policy makers in an effective and accessible manner, thereby contributing to the ‘ivory tower’ manner, thereby contributing to the ‘ivory tower’ image which some policy makers perceive. image which some policy makers perceive.

In short, a clash of cultures can limit effective In short, a clash of cultures can limit effective dialogue, even though there may be an ‘a priori’ dialogue, even though there may be an ‘a priori’ basis for developing such communicationbasis for developing such communication

POTENTIAL ROLES OF RESEARCH IN POTENTIAL ROLES OF RESEARCH IN RELATION TO PUBLIC POLICY?RELATION TO PUBLIC POLICY?

To contribute to the development of an evidence base To contribute to the development of an evidence base for policy formulationfor policy formulation Research can assist policy makers to become aware of an Research can assist policy makers to become aware of an

issue & define it for an appropriate policy response to be issue & define it for an appropriate policy response to be formulated. formulated.

Evidence at this stage may avoid reinventing the wheel & Evidence at this stage may avoid reinventing the wheel & also ensure that any locally specific characteristics of the also ensure that any locally specific characteristics of the issue are fully recognisedissue are fully recognised

To contribute to more effective policy To contribute to more effective policy implementationimplementation, , where previous experience can provide important lessons where previous experience can provide important lessons

To monitor and evaluate policyTo monitor and evaluate policy

EVIDENCE BASED POLICYEVIDENCE BASED POLICY

CHALLENGES TO EVIDENCE BASED POLICY CHALLENGES TO EVIDENCE BASED POLICY (Ian Drummond, Analytical Unit, BERR)(Ian Drummond, Analytical Unit, BERR)

BERR has made efforts to build a consultative BERR has made efforts to build a consultative relationship with the external research community & relationship with the external research community & improve researcher-policy maker dialogueimprove researcher-policy maker dialogue

BUTBUT

Available evidence is often partialAvailable evidence is often partial

The nature of available evidence may be variable in The nature of available evidence may be variable in quality, reliability, transferability and generalisability quality, reliability, transferability and generalisability (e.g. small samples; or only investigates a narrow (e.g. small samples; or only investigates a narrow range of relationships)range of relationships)

Ministers often need to produce quick and visible Ministers often need to produce quick and visible impacts so policy development can get ahead of the impacts so policy development can get ahead of the evidence base.evidence base.

CHALLENGES TO EVIDENCE BASED POLICY CHALLENGES TO EVIDENCE BASED POLICY (Ian Drummond, Analytical Unit, BERR)(Ian Drummond, Analytical Unit, BERR)

TThere are biases associated with a tendency here are biases associated with a tendency to privilege quantitative data; placing over-to privilege quantitative data; placing over-emphasis on the positive; emphasis on the positive;

NEVERTHELESSNEVERTHELESS

He concluded that all policies are based on He concluded that all policies are based on evidence (of some sort). The question is evidence (of some sort). The question is more about the nature of the evidence & the more about the nature of the evidence & the processes through which the evidence used processes through which the evidence used to set out policy options are of sufficient to set out policy options are of sufficient qualityquality

FINALLYFINALLY

It is difficult to demonstrate direct links It is difficult to demonstrate direct links between research and policybetween research and policy

Independent and critical research evidence Independent and critical research evidence is not always welcomed by policy makers, is not always welcomed by policy makers, who sometimes hide behind:who sometimes hide behind: a lack of evidence of policy effectsa lack of evidence of policy effects a lack of transparency in the policy a lack of transparency in the policy

process, which is not as logical as some process, which is not as logical as some academic often ssumeacademic often ssume