9 th RURAL ENTREPRENEURSHIP CONFERENCE: Observations, Themes , Implications

1. 9th RURAL ENTREPRENEURSHIP CONFERENCE: Observations, Themes , Implications David Smallbone Professor of Small Business and Entrepreneurship Small Business Research Centre Kingston University

2. IN WHAT SENSE RURAL? • International papers from Portugal, Poland, Pakistan, India, China, Mexico, Zimbabwe emphasise the heterogeneity of rural environments, although in country differences can also be considerable • In UK, peripheral rural areas are characterised by distance from major markets; depopulation; infrastructure deficiencies; high dependence on land-based activities • More central areas typically have higher population density; closer proximity to markets; less dependency on agriculture; a more diversified economic base • In developing countries rural areas are typically the poorest

3. 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)

4. Context • Growing recognition of role of context in entrepreneurship studies • “tendency to underestimate influence of external factors & overestimate internal/personal factors when analysing entrepreneurial behaviour” (Gartner, 1995) • The circumstances, conditions, situations or environments that are external to the phenomenon under study and enable or constrain it • Context is important for understanding when and how entrepreneurship happens and who becomes involved

5. CHANGE AND CONTINUITY IN THE CONference • Broader rural policy perspectives • marked increase in international papers • Broad themes: rural communities, enterprise and sustainable development are fairly consistent, with an increase in the number of papers on green topics • Tourism and social/community enterprise ever present • Increasing number of agriculture related papers reflecting the growing recognition of farming as a business and farm diversification as almost the norm • Substantial growth in papers using case study and qualitative methods

6. Key theme I – RURAL COMMUNITIES • Alleviating rural poverty – • evaluation of a rural welfare scheme in China (Xiaolin Wu et al); • Diaz-Pichardo et al – from farmers to entrepreneurs (Mexico). • Masiya et al show that even modest increases in income can make a difference at the household level • Defining rurality • Gary Bosworth-uses case study to deconstruct concept of rural business. Operating in a rural area; serving a rural population. Argues that policy support should target businesses contributing to rural society • Annabela Dinis reviews various definitions-functional, ecological etc

7. Key theme II– RURAL ENTERPRISE • Interdependencies within the rural economy (Colette Henry et al) • Are rural businesses really different from urban firms?- Sanders et al show rural firms are similar to urban firms in website quality. Assessment tool can help managers focus on key issues-particularly important for rural firms

8. Key theme iiI – SUSTAINABLE RURALITY • Social enterprise & sustainable rural communities • (Steinerowski) – a critical perspective emphasing contextual factors • (Lyon & Munoz) demonstrated contribution of social enterprises to rural development • (Jacuniak-Suda) social ent. in the Western Isles • Feasibility of community leadership for rural energy projects - concluded that context specific circumstances and factors enabled successful voluntary leadership • Implementation gap in terms of policy (Galloway et al) Ecotourism cases in Scotland, Portugal & Greece

9. RURAL POLICY AT THE CROSSROADS • Will rural interests be adequately represented in LEPS? • Who will be responsible for rural proofing? • Who will fund and deliver business support?

10. HOW CAN ENTREPRENEURSHIP AFFECT ECONOMIC DEVELOPMENT AND COMPETITIVENESS? Productive ‘churn’ Enterprising SME sector GDP growth Productivity growth Competition Innovation Employment growth

11. OECD PRIORITIES FOR FUTURE RURAL POLICY IN ENGLAND • Devolve policy design & offer more flexible funding locally • Rationalise the number of policy agents • Look for market solutions, with government adopting a strategic role • Improve integration of maintreaming and rural proofing • Strengthen rural economy with better joined up policies eg housing, planning, economy • Expand rural connectvity

12. RESEARCH-POLICY INTERFACE • Policy makers often do not value research, which they view as ‘academic’ rather than practical • Researchers often fail to communicate their results to policy makers in an effective and accessible manner, thereby contributing to the ‘ivory tower’ image which some policy makers perceive. • In short, a clash of cultures can limit effective dialogue, even though there may be an ‘a priori’ basis for developing such communication

13. POTential roles of research in relation to public policy? To contribute to the development of an evidence base for policy formulation Research can assist policy makers to become aware of an issue & define it for an appropriate policy response to be formulated. Evidence at this stage may avoid reinventing the wheel & also ensure that any locally specific characteristics of the issue are fully recognised To contribute to more effective policy implementation, where previous experience can provide important lessons To monitor and evaluate policy

14. EVIDENCE BASED POLICY

15. CHALLENGES TO EVIDENCE BASED POLICY (Ian Drummond, Analytical Unit, BERR) BERR has made efforts to build a consultative relationship with the external research community & improve researcher-policy maker dialogue BUT Available evidence is often partial The nature of available evidence may be variable in quality, reliability, transferability and generalisability (e.g. small samples; or only investigates a narrow range of relationships) Ministers often need to produce quick and visible impacts so policy development can get ahead of the evidence base.

16. CHALLENGES TO EVIDENCE BASED POLICY (Ian Drummond, Analytical Unit, BERR) There are biases associated with a tendency to privilege quantitative data; placing over-emphasis on the positive; NEVERTHELESS He concluded that all policies are based on evidence (of some sort). The question is more about the nature of the evidence & the processes through which the evidence used to set out policy options are of sufficient quality

17. FINALLY It is difficult to demonstrate direct links between research and policy Independent and critical research evidence is not always welcomed by policy makers, who sometimes hide behind: a lack of evidence of policy effects a lack of transparency in the policy process, which is not as logical as some academic often ssume