Download NETWORK BRIEF JULY

Scottish Enterprise and Rural Economic
Development
May 2007
This Presentation….
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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
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Developing the Network’s understanding and implementation of the
rural dimension of SSS
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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.
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Ensuring the development and sharing of best practice across our
interventions and projects in rural areas.
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Working with partners to develop a future vision for a successful
rural economy in Scotland and understanding how our approach
may need to evolve.
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Raising awareness of the Network’s rural activities and impact
amongst key audiences and stakeholders.
Scottish Enterprise Operating Plan
Achieving a….
Smart Successful Scotland
Growing Business – Skills and Learning – Global Connections
Sustainable development –Closing the opportunity gap
Industry demand
Focusing on…..
Connectivity
Finance
Energy
Food & Drink
Regional Industries
Tourism
Financial services
Life Sciences
Innovation system
Enabling Tech
Electronic markets
Business environment
Delivered through…
Metropolitan Scotland
SE Network and partners
International/National
City Region
Local
Leading to…………
Projects & programmes
levering more/better/faster investment
Outcomes & impact
Market access
Skills
Competitive place
Metropolitan Scotland – What it means for the Borders
Metro East Plan…
Borders
Edinburgh City Region
South of Scotland
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:
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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
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
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 20002006
 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 rural
19% of the population in SE area is rural
17% 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
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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
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.
Rural change drivers
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Social changes – ageing, migration, ethics etc.
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Political/public sector developments – leadership, planning etc.
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Globalisation/EU enlargement/WTO reforms – competition, funding etc.
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Agricultural/fishing reform – threats and opportunities
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Land/Housing – land reform, housing stock transfer etc.
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Environmental developments - value of natural heritage, climate change etc.
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Technologicial developments - e-enablement, energy etc.
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?
Urban/Rural Balance
Horses to Water….
Conservative
 Playground of the Urbanites
 Stagnant rural
 Rural ghettos
 Urban will rules
Gardeners’ World
Political framework
 Rural connected, but not on
 Stuck in time
 Propped-up for now
 Socially strong
Rural Renaissance
 Rural new economy
 Digital services
 Confident cosmopolitan rural
 Rural/Urban in step
Progressive
Outlook/attitude
 Accessible and urban boom
 Remote rural entrepreneurship
 Rural in Europe
 Remoter areas going it alone
Upstairs Downstairs
Urban-Focussed
Rural Renaissance
Progressive rural attitudes and an urban/rural balanced political framework
Characteristics
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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
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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
Horses to Water….
Political framework
Conservative
Where we
think we
are now
Gardener’s
World
Rural Renaissance
Where we’d like to be
Progressive
Where
we think
we’re
heading
Outlook/attitude
Upstairs Downstairs
Urban-Focussed
Stakeholders Meeting
 Participants
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Scottish Executive ELLTD; ERAD
SNH
Communities Scotland
Scottish Agricultural College
Scottish Estates Business Group
HIE
Royal Mail
Southern Upland Partnership
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VisitScotland
SAOS
SCVO
Forestry Commission
COSLA
Sc Business in the Community
Countryside Alliance
 Question: What do we need to do now to enable a positive
future for rural areas, i.e. change the trajectory.