Creative and artistic ventures — often ignored by banks and other businesses — could thrive as part of a rural enterprise hub, researchers have claimed.
Researchers from Newcastle University’s Centre for Rural Economy found that enterprise hubs could go a long way to helping digital, media and creative industries achieve financial success and provide badly needed jobs.
The study examined 22 rural hubs in the region, each providing shared office space and support services and with opportunities to cross-fertilise ideas and knowledge between different types of business.
“The existing hubs are doing a good job, they are rural enterprises in their own right and the facilities are appreciated by the businesses that use them,” explained Paul Cowie who led the study.
For this reason, he continued to say that more networking between hubs were needed to increase the benefits, and suggested that a membership scheme offering members access to a regional or national network would also be beneficial.
Of the businesses surveyed, 63 per cent had previously been located at home. Many business owners are in the process of launching their ventures part time, while earning a living from another job or career, while others are looking for flexibility in the space available with a future option to expand.
“We also found that rural hubs are growing a different kind of business,” added Cowie, “with enterprises across the fields of digital industries, media, arts and creativity, and with careful encouragement, these could be playing a key role in the future of a rural economy and employment.”
Launched with £165m of central money, the Rural Growth Networks were founded following the Government’s Rural Economy Growth Review. Their brief is to stimulate economic growth with £15m specifically allocated to fund schemes to help rural areas overcome barriers to growth such as scarcity of business premises and lack of business networks.
“Farms and rural businesses are too often held back by problems like insufficient local business premises and few training opportunities,” said farming Minister, Jim Paice.
“The Rural Growth Network will take down these barriers to growth, allowing farmers and local entrepreneurs to turn their ambitions into reality, bringing vitality and energy back into the country and while attracting jobs.”
Ray Browning, head of the North-East Rural Network, said the university research had highlighted several key issues facing enterprise hubs and presented several practical ideas on how to assist their growth and development across the North Eastern Local Enterprise Partnership area.
“We will be picking up on several key recommendations including the creation of an enterprise hub network through which good practice can be shared, exploring opportunities for joint procurement and pursuing joint marketing to help attract more entrepreneurs into the rural North-East,” he said.
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