Scottish Enterprise and Rural Economic Development

1. Scottish Enterprise and Rural Economic Development May 2007

2. This Presentation…. • The Rural Group • The Scottish Enterprise Operating Plan Framework • The SE Network and Rural Development • Rural Group Research Agenda • Rural Futures

3. Scottish Enterprise Rural Group • Includes Industry teams, LECS, Scottish Executive (Rural Affairs and Enterprise) • Remit of Group • Developing the Network’s understanding and implementation of the rural dimension of SSS • Coordinating the implementation of the Network’s responsibilities in achieving the objectives of Scottish Rural Development Plan, the Forward Strategy for Scottish Agriculture and Land Reform. • Ensuring the development and sharing of best practice across our interventions and projects in rural areas. • Working with partners to develop a future vision for a successful rural economy in Scotland and understanding how our approach may need to evolve. • Raising awareness of the Network’s rural activities and impact amongst key audiences and stakeholders.

4. Scottish Enterprise Operating Plan Industry demand Regional Industries Energy Connectivity Market access Financial services Tourism Food & Drink Skills Finance Life Sciences Enabling Tech Competitive place Innovation system Electronic markets Business environment Smart Successful Scotland Growing Business – Skills and Learning – Global Connections Sustainable development –Closing the opportunity gap Achieving a…. Focusing on….. Metropolitan Scotland SE Network and partners Delivered through… International/National City Region Local Projects & programmes levering more/better/faster investment Leading to………… Outcomes & impact

5. Metropolitan Scotland – What it means for the Borders South of Scotland Borders Metro East Plan… Rural Edinburgh City Region

6. Rural Scotland and Scottish Enterprise • 96.6% of our geographic area is classified as rural • 1 million people are based in the SE rural areas – 75% of the Scottish total • Clear expectation that the SSS vision of economic success is for the whole of Scotland, not just the urban parts • Around 16% of SE budget spent in rural areas • Enterprise networks provide services crucial to the development of rural areas • Devolved structure enables delivery to fit local needs and opportunities

7. Smart Successful Scotland and Rural Areas • In general rural economies face the same challenges as urban areas • However particular issues include, for example: • Lower GDP/head and wages • Out-migration and ‘faster’ ageing in some areas • Limited (range of) job opportunities • ‘Traditional’ rural industries under stress/change • Lack of high growth start ups • Lack of ‘international’ businesses • Limited of availability of development sites • Business and individual access problems through lack of infrastructure • Wide variety of “rural areas” across Scottish Enterprise area, hence different challenges and opportunities to achieve economic growth

8. The SE Rural Focus • Diversifying and growing the rural economy in its own right through focusing on growth and adding value to natural assets In so doing we will seek to…. • Maximise the contribution of rural areas to our national and regional priority industries through capitalising on the natural asset base • Maximise the contribution of accessible rural areas to the metropolitan regions

9. Specific operational objectives for the Network across the 3 Smart Successful Scotland themes • Stimulating the diversification of the rural economy • Supporting the development of competitive, sustainable businesses in rural industries • Enabling the economic sustainability of small communities • Increasing the availability and attractiveness of sites and properties for economic development activities • Enhancing the operation of the rural labour market and improving working practices

10. Diversifying and growing the rural economy We aim to enable: • A more diverse rural economy incorporating new sectors alongside ‘traditional’ businesses. • Competitive, innovative businesses across new and traditional sectors operating globally. • The retention/attraction of young people (esp. graduates) in the rural economy. • Locations of choice for ‘knowledge workers’ – young and old. • High quality places which encourage an inward flow of businesses, people and ideas to rural areas. • Sustainable, vibrant small communities.

11. Rural and Metro region development opportunities Our Metro Regions include substantial rural areas which can, and do, contribute to Scotland’s economic growth • Development of lifestyle/recreation/tourism offerings - enhancement of metro region attractiveness to people and businesses. • Developing and promoting alternative ‘quality of life’ locations for growth businesses. • Developing and promoting alternative ‘quality of life’ locations for individuals, utilising routes to flexible and remote working, for example. • The maintenance, articulation and positioning of the uniqueness, accessibility and quality of our rural hinterlands to differentiate Scotland’s metro region proposition internationally.

12. Rural and Priority Industry Development Tourism • The development and exploitation of innovative concepts in relation to: • Scottish tourism products such as golf, mountain biking and other adventure sports • Distinctive Scottish rural places such as the National Parks, Forest Parks etc. • Maximising the opportunities of green tourism • The recruitment and retention of staff in rural tourism businesses. Energy • The development and exploitation of: • Bioenergy - particularly biodiesel and biomass • Other renewable energy opportunities – wind and wave power. Food & Drink • Strengthening existing links between F&D priorities and Forward Strategy for Agriculture objectives, e.g. in relation to supply chain development • The development and exploitation of products aimed at premium markets in the UK and internationally, e.g. health/indulgence and red meat

13. Rural Interventions – at LEC Level

14. Cross LEC Rural Projects • Planning to Succeed • Rural Leadership • Profit without Subsidy • SE Rural Land Fund

15. Rural activity across Smart Successful Scotland (as of April 07): 18.2% of all Modern Apprenticeships achieved 18.6% of all Skillseekers achieved 23.0% of all business starts 85.7% of all Network investment ‘products’ delivered 11.6% of all Network innovation ‘ products’ Ref: 16% of all households in SE area are rural 19% of the population in SE area is rural 17% of all SE account/client managed companies are rural Rural Interventions – at LEC Level

16. Rural - strategic development • Rural Futures • Working with others • SEERAD • Scottish Academy of Rural Policy • Strategic agreements • SEBG/NFUS/SRPBA

17. Rural Finance Creative Countryside Rural Advocacy Migrant Workers RSE Hill & Upland Areas Inquiry CAP Beyond 2013 Rural Business Property Vibrant Communities and Entrepreneurship Profitable Farm Business and CSR Outputs Rural Innovation – Networks, type, HE/FE links Role of Rural Place in City Regions Renewables Stimulating the Private Sector – natural environment Rural Group – Research Agenda

18. SE Rural Futures • To stimulate a strategic discussion on opportunities and challenges facing Rural Scotland, within SE Rural Group and with partner organisations, building mutual understanding. • To identify the types of critical issues SE and partners will have to address to make an effective contribution to future rural economic development. • To understand how SE interventions and relationships will need to change to meet new challenges. • To create an agenda for ongoing strategic research and discussion.

19. Rural change drivers • Social changes – ageing,migration, ethics etc. • Political/public sector developments – leadership, planning etc. • Globalisation/EU enlargement/WTO reforms – competition, funding etc. • Agricultural/fishing reform – threats and opportunities • Land/Housing – land reform, housing stock transfer etc. • Environmental developments - value of natural heritage, climate change etc. • Technologicial developments - e-enablement, energy etc.

20. Most significant uncertainties = scenario framework matrix axes ... • The type of political framework in place. Would this place the same priority on rural development as urban? • The attitude/outlook of rural people and businesses - tend towards the progressive/adaptive or become conservative/parochial in nature?

21. Urban/Rural Balance Horses to Water…. Rural Renaissance • Rural connected, but not on • Stuck in time • Propped-up for now • Socially strong • Rural new economy • Digital services • Confident cosmopolitan rural • Rural/Urban in step Political framework Conservative Progressive Outlook/attitude • Playground of the Urbanites • Stagnant rural • Rural ghettos • Urban will rules • Accessible and urban boom • Remote rural entrepreneurship • Rural in Europe • Remoter areas going it alone Upstairs Downstairs Gardeners’ World Urban-Focussed

22. Rural RenaissanceProgressive rural attitudes and an urban/rural balanced political framework Characteristics • Clear national understanding of how both accessible and remote rural areas can both play an important role in, and benefit from, the economic growth of Scotland’s strategically-important urban areas • Economy is diverse and truly global in reach – less dependent on e.g. tourism. • A genuine Scottish voice, uniting urban and rural, has emerged • Rural areas are providing the locations of choice for ‘knowledge workers’ – young and old. • The rural populace is quite different than that of the 20th century, being much more cosmopolitan in its make-up and outlook. • Better management of heritage for focussed purpose – high quality environment. • New crofting communities developing successful, ‘sustainable’ high quality niche products, • Many services such as banking and post being delivered electronically • Community Planning has enabled rural groups to grasp hold of their future - rural communities are dynamic and self-sufficient. Economic Development • Operates in the context of sustainable development - greater clarity about complementary development of urban/rural • Genuinely joined-up - agencies collaborate on innovations which span the economic, social and environmental boundaries. • Emphasis is on accelerating opportunity and risk-taking, enabling both inward and outward international links.

23. The Rural Futures Scenarios: Questions posed to development group: • Where do we think we are now? • Where would we like to be? • Where do we think we’re heading?

24. Urban/Rural Balance Horses to Water…. Rural Renaissance Where we’d like to be Political framework Conservative Progressive Where we think we’re heading Outlook/attitude Where we think we are now Upstairs Downstairs Gardener’s World Urban-Focussed

25. VisitScotland • SAOS • SCVO • Forestry Commission • COSLA • Sc Business in the Community • Countryside Alliance Stakeholders Meeting • Participants • Scottish Executive ELLTD; ERAD • SNH • Communities Scotland • Scottish Agricultural College • Scottish Estates Business Group • HIE • Royal Mail • Southern Upland Partnership • Question: What do we need to do now to enable a positive future for rural areas, i.e. change the trajectory.