Final Report
for
Scottish Enterprise Rural Group
8th April 2008
Registered Office: Glasgow
St George's Studios
93-97 St George's Road
Glasgow, G3 6JA
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Inverness
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email: web: www.ekos-consultants.co.uk
Contents
Executive Summary 1
1. Introduction 9
2. The Potential of Small Rural Communities 16
3. Key Factors Leading to the Loss of Sustainability 21
4. Needs and Barriers in Rural Development 26
5. Evidence and Drivers of Effective Interventions 36
6. Conclusions and Recommendations 44
Appendix A - Policy Review 53
Appendix B - Literature Review 66
Appendix C - Good Practice Guides Review 78
Appendix D – Case Studies 91
Executive Summary
This report has been commissioned by the Scottish Enterprise Rural Group. It focuses on how economically-sustainable small rural communities could contribute to the development of the broader rural economy and what small rural communities need to become sustainable.
Research Overview
The key findings of the research are:
- small rural economies represent an important constituent part of Scotland’s economy;
- economic development policy has had a largely urban perspective but this is changing due to factors relating to, for example, global warming and the changing global economy, with rural areas becoming a focal point for significant aspects of economic development;
- the key growth sectors for rural areas are in the further development of renewable energies, food and drink and tourism (particularly outdoor activity-based tourism);
- economic development in rural economies should be recognisably smaller in scale and based on community engagement, community planning and exploiting opportunities for asset-based community development;
- further support is required from key agencies, including Scottish Enterprise, to enable this development. Support should aim to develop and encourage leadership and entrepreneurship to stimulate appropriate commercial and social enterprise within small rural communities;
- there are implications for Scottish Enterprise and its future role in rural development particularly with regard to establishing a bridging role between national policy and local delivery and supporting local business development; and
- to assist rural economic development, Scottish Enterprise should adopt a pro-active role in developing partnerships and in further developing its role as a ‘rural advocate’.
Introduction
The overall purpose of this research has been to examine how community-based economic development could be used to best effect in enabling smaller rural communities to become more sustainable and deliver significant economic outputs.
The study has sought to gather information on the overall potential of smaller rural communities to contribute to the wider economy and identify how this can be done. This has been based on the identification of the current barriers, as well as on the development needs and opportunities of small rural communities in becoming vibrant and sustainable economies.
The research method included a desk based review of: current policy and strategies in rural development; current rural development literature; and good practice guides and manuals.
This has been complemented by a series of case studies that highlight key elements of rural economic development. This includes, for example, approaches to rural development adopted by development trusts and social enterprise which is based on physical regeneration and the development of natural assets.
Key research questions have been used in a wide-ranging consultation. These centred on clarifying the definition of vibrant rural communities with examples and identifying their potential in relation to ‘Metropolitan Areas’. The key questions also explore urban/rural interdependence and how support for community development and social capital can impact on rural development.
The ten research questions are based around four categories: The Potential of Small Rural Communities; Key Factors Undermining Sustainability; Needs and Barriers; and Evidence and Drivers of Effective Interventions.
Findings
The Potential of Small Rural Communities
The research suggests that whilst the key economic drivers of the Scottish economy are firmly established in its urban context it would be extremely remiss to ignore the overall influence that our rural landscape and culture has on Scotland’s global identity and economic success. Moreover there is a specific economic contribution from sectors that are primarily located in rural areas (food and drink industry, fisheries, forestry and energy) as well as tourism activity based on Scotland’s rich natural heritage and culture.
The research finds that the potential of small rural communities to contribute to the economy is just as relevant as that of larger rural and urban communities, and this is in fact an intricate, multi-layered and interdependent relationship with all aspects making an equally valuable contribution.
In light of this there are a number of issues concerning the role and new opportunities for small rural communities in the 21st century. These opportunities are set firmly within the context of sustainable development and include for example:
- quality food and drink production, including serving the increased interest in reduced ‘food miles’, in local production, and traceability;
- increased exploitation of renewable energy resources and, thereby, pro-actively contributing to a reduced carbon footprint of Scotland; and
- increased quality and diversification of the Scottish tourism product, including all aspects of outdoor recreation, adventure, and environmentally based developments, creating complementary linkages between urban and rural-based tourism activities.
The research therefore suggests that small rural communities are making a contribution to the Scottish economy and this will become increasingly important as opportunities emerge from the challenges of the 21st Century.
Key Factors Leading to the Loss of Sustainability
The research suggests that the challenges facing rural communities are generally considered to include poor GDP performance, small number of businesses, larger proportions of seasonal/part-time employment and poor connectivity. These are often aggravated by poor housing, lack of services and inaccessibility.
However, many of these issues are identified as symptoms of changes occurring on a larger scale in industrial/developed countries. This includes for example: industrial change and the growth of the service sector, urbanisation, the rapid pace of technological development and globalisation of markets and finance.
Furthermore, these processes are having effects on rural communities in different ways. Accessible rural communities are, for example, affected by an ‘urban shadow’ that is having a negative impact on local services and retail centres. While in remote rural areas depopulation are much more acute raising issues around economies of scale and increasing difficulties in the provision of public as well as private sector services.
Despite this, there are a number of developments that may serve to change the future of rural areas in a positive way. A number of examples are provided, these including, the possibility that current worldwide wheat shortages and associated price increases, may serve to shift the decline in primary industries by making food production more profitable.
Globalisation and associated processes have contrived to undermine the sustainability of some rural communities. The impact of these processes has been uneven and affected accessible rural and remote areas in different ways. Despite this, the dynamic nature of these global processes is such that opportunities are now emerging that may have a positive impact, for example in energy production and tourism (adventure and outdoor sports).
Needs and Barriers in Rural Development
Findings imply that while vibrancy can be identified in the range of services available, for example, pub, post office, shops and school; economic sustainability and vibrancy is more closely linked to the effective use of social capital and community-based activity.
The research suggests that additional factors that are key to achieving vibrant rural communities centre on:
- encouraging community engagement and participation particularly through community planning;
- establishing community ownership by transferring ownership and/or responsibility for community assets; and
- the development of social capital and social enterprise.
As such these represent key areas that economic development agencies, including Scottish Enterprise, should seek to influence.
The barriers that prevent sustainable economic development are identified as: a lack of critical mass/economies of scale; lack of expertise and capacities; lack of awareness and joined-up thinking; and integrated action.
These barriers are often compounded by limited public resources and short-termism of funding competing with the long-term process of changing mindsets and attitudes and resistance to change.
There are number of suggestions to overcome the barriers and challenges and these include: addressing resistance to change; supporting capacity building within communities that includes the development of leadership and entrepreneurship; community-based approaches to physical regeneration and customised; and bespoke organisational development support for commercial and social enterprise.
Evidence and Drivers of Effective Interventions
The review of best practice examples and project evaluations revealed that these tend to focus more on qualitative outcomes such as capacity building and community involvement as opposed to economic impacts. There was also a tendency to concentrate on operational details of the initiative, for example project management and target group involvement, rather than achievements.
As such, the research suggests that future evaluation must assess project impact on more economic grounds, in relation to sustainability, and with regard to the broader ‘rural economy’, even if this means reporting smaller scale quantitative impacts.
The review of successful public sector programmes suggested that there were a number of common critical success factor. These include the provision of facilitation or dedicated officer posts to engage the community and networking and exchange of good practice and project ideas.
In addition it was suggested that other critical success factors included the requirement to entrust communities to plan, to own, and to be reliable project partners and assisting communities to develop community plans and providing resources for support programmes to assist implementation.
Recommendations
In view of these issues and findings the research presents eleven recommendations based around three categories of: ‘Fundamental Awareness and Attitude’; ‘Working Towards Sustainable Development’; and ‘Community-based Economic Development’. The recommendations can be summarised as:
Fundamental Awareness and Attitude
1. It is important to recognise that success in relation to economic sustainability in rural areas is not necessarily based on high growth and quantity of jobs. Small scale successes can be considered high value in relation to their rural baseline.
2. Further efforts are required to increase the awareness levels and recognition of rural area characteristics and interdependencies such that the tendency to apply urban-biased expectations on the rural context will be reduced.
3. Creative problem solving, effective communication, partnership and joined-up action at all levels are essential components of success. More needs to be done to foster and develop these aspects throughout at the organisational, community and individual levels.
Working towards Sustainable Development
4. In light of the overall sustainable development agenda, the urban and rural interdependencies and synergies are worthwhile exploring further. Although this might already have started to being addressed in case of the ‘accessible rural areas’ through the Metropolitan Area concept, an improved concept for ‘remote rural areas’ needs to be developed to improve a more appropriate integration and consideration of their role and connectedness.
5. It is therefore appropriate to continue and promote further opportunities in renewable energies (traditionally located in rural areas), bio-energy, the emphasis on using local produce and green tourism.
6. Lifestyle issues, recreation and adventure tourism are further drivers of change that present opportunities to exploit natural assets to develop sports such as golf, mountain biking, water-based activities and mountain based activities (climbing, walking, orienteering). A desire to live in rural areas for perceived improvement in quality of life brings new people to the area. However, an inherent threat to sustainable rural development arises from the risk of the development of dormitory towns in accessible rural areas.
7. Issues associated with carbon emissions combined with the likely increase in fuel prices require the promotion for further acceptance by businesses of working from home, video conferencing, etc. This should also include a stronger emphasis on stimulating enterprises to relocate into rural areas. A full geographical broadband coverage of Scotland is, therefore, required, in addition to overcoming other infrastructural shortfalls in energy provision and the availability of suitable business premises.
Community-Based Economic Development
8. The community-based approach and community-led community planning has been strongly confirmed as the appropriate way forward in rural economic development. The development of community plans also constitute a crucial step in identifying and recognising community assets, and raising of awareness and understanding. All these represent key stepping stones for the development of creative and new solutions for communities and their future viability. It is important that existing support services which provide facilitation and organisational input continue to operate on a wide scale throughout.
9. Whilst asset-based community development emerges as an important method for developing vibrant communities, care has to be taken not to forget other effective alternatives such as partnership approaches. Funding organisations and rural strategies ought to maintain open minds with regard to appropriate solutions, i.e. not all approaches work for all communities. Flexibility and adjustment is, therefore, required in order to maximise local development opportunities.
10. Community engagement and capacity building are the cornerstones of community-based development and their value has been widely acknowledged. However, more recognition should be given to the limits of volunteer labour and community engagement. There is the risk in expecting the impossible from communities, particularly in terms of the management of large operations or development trusts, and the expectations of self-sufficiency and profitability. A certain degree of realism must be applied combined with a requirement for appropriate customised capacity building that reflects each stage in organisational development.
11. In order to facilitate economic impact from community-based initiatives, it is important to accept that certain social enterprises do have the ability to develop into commercial entities. However, this requires much improved access to specialist and bespoke business support services from advisors with expertise in both areas, or from a much larger resource of committed mentors with a private sector business background.