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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. 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: 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 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 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. 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 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 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 Scottish Executive ELLTD; ERAD SNH Communities Scotland Scottish Agricultural College Scottish Estates Business Group HIE Royal Mail Southern Upland Partnership 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.