1.4 Overview of Rural Business
The Region's Rural Economy
- The rural and urban economies in the north and east of the Region have a far lower dependence on agricultural and tourism than further west. Whilst the economy of the west of the Region remains more traditional, even here reliance on the primary industries is low. The overall impression is of an economy based on the service sector, with consumer services and tourism the two largest components. Manufacturing activity is a relatively small proportion of the overall rural economy, but insofar as it exists it is broadly similar in type to urban manufacturing though smaller in scale. Thus engineering, marine related manufacture and hi-tech manufacturing are all in evidence; contrary to popular belief, it is not only potters and corn-dolly makers, although small scale craft enterprises do exist, particularly where there is a ready tourism market.
- The Region has a higher proportion of jobs in firms of less than 10 employees than the national average (22%), with this figure rising to nearly 30% in Cornwall and North Devon.
- Overall the rural economy is dominated by the service sector, rising to over 60% of all employment in the remote and extreme remote parts of the Region (Devon, Cornwall and the western parts of Somerset and Dorset). In the remote and extremely remote areas, 25% of all jobs are tourism related, while, with 30% of all jobs, the provision of consumer services is the dominant sector in most rural areas. By contrast, direct employment in agriculture across the region is only 3.2% of jobs, but this figure rises to 5.33% in Cornwall.
Summary and Key Issues
- The rural economy traditionally has relied heavily on the land-based sector, particularly agriculture and its ancillary industries, as indeed has the viability of rural communities and the health of the environment. Whilst agriculture is still responsible for the management of more than 4/5 of the land in the South West, and for 2.7 % of the regional GDP, the integration of that industry with its ancillaries, with other land-based industries, with rural communities and with the environment is essential to the goal of sustainable rural development in the South West.
- A report by Prosper concluded that "the future for the agricultural industry will only be assured by strength coming from within the industry. Only competitive business minded proprietors survive in any industry these days and farming will be no different".34
- Farming is vital to the positive management of the countryside and still plays an significant role in rural community life, therefore agriculture can not be run down and "closed" like any other industries. To maintain this dual role the agricultural industry needs to retain viable farming businesses, and especially the family farm. Viable farms sustain and create employment both on and off-farm, including upstream and downstream jobs or industries.
- There is a need for agricultural businesses, along with the Region's broader rural economy, to take advantage of opportunities to restructure and diversify. While agriculture is likely to remain the core primary industry in the South West, alternative sources of income and flexible and innovative means of stimulating alternative rural enterprises will be needed.
- The value and potential for woodlands is an important part of the rural business sector. As well as the management and creation of woodlands there are the overall associated benefits, the diversity and the long-term sustainability of employment and the value to the community. An integration with agriculture and conservation issues is essential and can be to their mutual benefit.
- The South West has long been established as the leading region for tourism in the UK, with the value of tourism being greater than that for Scotland and Wales combined. This is mainly due to the combination of the warm, relatively reliable summer climate and the natural attraction of the countryside and coastline.
- To exploit the opportunities to diversify or to seek alternative employment, there is a need for the rural workforce to gain new skills.
- Farm businesses need to overcome remaining insularity and collaborate with one another in production and marketing initiatives, and through enterprise input agreements, for example machinery and skills rings.
- Young people and women should be encouraged to remain in the agricultural industry and these categories amongst other new entrants require opportunities to enter the industry.
Page last modified:
17 August, 2005
Page published: 1 October, 2000