Scottish Enterprise and Rural Economic Development

May 2007

This Presentation….

The Rural Group The Scottish Enterprise Operating Plan Framework The SE Network and Rural Development Rural Group Research Agenda Rural Futures

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.

Smart Successful ScotlandGrowing Business – Skills and Learning – Global Connections

Sustainable development –Closing the opportunity gap

Focusing on…..

Projects & programmeslevering more/better/faster investment

Delivered through… Metropolitan ScotlandSE Network and partners

Local

International/National

City Region

Leading to…………

Achieving a….

Outcomes & impact

Market access

Skills

Competitive placeInnovation system

Finance

Connectivity

Industry demand

Life Sciences

Energy

TourismFood & Drink

Regional Industries

Electronic markets

Financial services

Business environment

Enabling Tech

Scottish Enterprise Operating Plan

Metropolitan Scotland – What it means for the Borders

Metro East Plan…

Edinburgh City Region

South of ScotlandBorders

Rural

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

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

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

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

Specific operational objectives for the Network across the 3 Smart Successful Scotland themes

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.

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.

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

Rural Interventions – at LEC Level

Building Buchan - New Beginnings

3 year Action Plan 2003-06 to address the economic challenges facing the coastal communities in North Aberdeenshire.

Led by core partners Scottish Enterprise Grampian, Aberdeenshire Council and Communities Scotland

Part-funded by the European Regional Development Fund through the East of Scotland Objective 2 Programme 2000-2006

Spend to date c.£4.6m, potentially £13m by 31/3/07.

Cross LEC Rural Projects

Planning to Succeed

Rural Leadership

Profit without Subsidy

SE Rural Land Fund

Rural Interventions – at LEC Level

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 rural19% of the population in SE area is rural17% of all SE account/client managed companies are rural

Rural - strategic development

Rural Futures

Working with others

SEERAD Scottish Academy of

Rural Policy

Strategic agreements

SEBG/NFUS/SRPBA

Rural Group – Research Agenda

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

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.

SE Rural Futures

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.

Rural change drivers

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?

Most significant uncertainties = scenario framework matrix axes ...

Urban/Rural Balance

Urban-Focussed

Conservative Progressive

Horses to Water….

Rural Renaissance

Gardeners’ World

Upstairs Downstairs

Po

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fram

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Outlook/attitude

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

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

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.

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?

Urban/Rural Balance

Urban-Focussed

Conservative

Progressive

Horses to Water….

Rural Renaissance

Gardener’s World

Upstairs Downstairs

Po

liti

cal

fram

ewo

rk

Outlook/attitude

Where we’d like to be

Where we think we’re heading

Where we think we are now

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.

VisitScotland SAOS SCVO Forestry Commission COSLA Sc Business in the Community Countryside Alliance