Rural enterprise support: evaluation report

1. Executive Summary

1.1 Background

This report presents findings of the evaluation of a pilot project of integrated, place based business support provided by GrowBiz, sponsored by Scottish Government and others.^[1] The pilot was concerned with providing a range of support to rural micro-enterprises, and was designed to fulfil a 2019-20 Programme for Government (PfG) commitment to “test a place-based approach to integrated business support for micro-enterprises operating in rural areas”.^[2]

The intervention provided 12 months’ of free business support to rural enterprises, delivered by GrowBiz, operating primarily in Perth and Kinross. The intervention was also specified to involve use of a digital platform (smart villages) to provide increased opportunities for networking, new ‘routes to market’ and enhancement of digital connectivity and upskilling of rural businesses and communities.

The purpose of this evaluation report is to identify the lessons learned from the pilot which will, in turn, help inform the future business support landscape for rural businesses. This evaluation reviews the intervention delivery and provides insight on how the intervention was perceived by participants and the benefits that they obtained. The evaluation does not quantify, in economic terms, the impact of the pilot intervention.

1.2 Outline of the evidence

This report first gives an overview of policy context in which this pilot was delivered and reviews the relevant literature. The Scottish Government have emphasised the importance of supporting the rural economy. Overall, research indicates that small and micro-businesses are more prominent in rural Scotland than in urban areas.^[3] Evidence on Scottish small and medium sized-enterprises, emphasises that growth is not always a high priority for these businesses.^[4]

Data collected from participants via the survey (n = 138, 18% of the intervention cohort), interviews and focus groups (n = 18) indicate a high satisfaction among participants with the support they received through the place-based pilot, and highlights a range of features that made the support provided during the pilot project particularly valuable. Slightly over half of the respondents reported that the support provided was more helpful than comparable business services they had used and two thirds reported increasing their digital skills as a result of the intervention.

The research with participants provided valuable insights on the experiences of certain micro-enterprises with business support and contributed to an understanding of their needs and requirements for support. The following elements of the support were emphasised by participants as being particularly valuable:

• Having a highly personalised service which was tailored and flexible
• Practical advice
• Peer support which reduced isolation
• Help to access funding
• Opportunities to network with and learn from other peers and local businesses
• An inclusive environment
• Support in developing confidence and discussing ideas
• Responsive support in the context of Coronavirus (COVID-19)
• A sense of being listened to

Key Performance Indicators (KPIs) show that 751 unique businesses were supported and 159 events were organised. However, fewer than the intended numbers of Smart Village ‘digital platforms’ were delivered. The reduced delivery against KPIs of the ‘digital platform’ objective reflects a combination of the impacts of Coronavirus (COVID-19), which made establishing new projects extremely challenging (including unanticipated challenges in establishing effective collaboration and an ambitious target). In June 2020, in light of on ongoing challenges, the project was redirected to refocus attention from the Smart Village enablement to the business support elements of the intervention.

1.3 Principles for future Rural Business support

The results of the research suggested four principles of rural business support for the future.

1. Principle 1: Emphasise the social dimensions of business support

The social dimension of business support was emphasised by participants in the evaluation. This relates both to the potential isolation involved in running a business in a rural context, and the sense in which participants saw themselves as benefitting from the networking opportunities provided.

2. Principle 2: Listening and understanding to inform a tailored approach to support

The research showed the importance of increasing the confidence of participants in their business abilities over the course of the intervention. As many of these participants were starting businesses for the first time, the importance of this should not be under-estimated. Providing a welcoming atmosphere, and ensuring that participants have the opportunity to meet others in their position, were emphasised by participants as important parts of the intervention. A recurring theme within the interviews and benefits cited was that participation with the provider involved being listened to and that subsequently support was tailored to the needs of the business. This was clear both in relation to the less positive experiences participants had had with other forms of business support and what they cited as beneficial about the approach. As noted above, for some participants, there was a strong sense that the provider understood where a rural business was coming from and sensitive to the needs of participants.

3. Principle 3: Practical, inclusive support

A key feature of the support was that it was practical, and extremely responsive to individual need. Participants emphasised that, unlike other contexts where they may be expected to undertake a more structured processes, the place-based support was tailored and flexible. This has various advantages, including the fact that needs constantly evolve and can be challenging to plan in advance.

4. Principle 4: Emphasising the business community as a whole

As several participants emphasised, supporting the community as a whole was an important goal for business support. Participants emphasised that while individually small businesses may make a limited contribution, a thriving community of businesses could mutually support each other and collectively contribute to the wellbeing of the community. The broader context of this principle is that, in the context of rural businesses, there may be a range of benefits that accrue from business development that do not necessarily translate into immediately measurable economic gains, but can nonetheless have important benefits for community wellbeing.

1.4 Other findings

Whilst some equalities data was collected from recipients of the support that was provided it was noted that it would have been beneficial had a broader range of parameters been included (for example, age and ethnicity, as well as other demographics). However, it was also recognised that this was outwith the requirement of the project and as such any future business support schemes should include a requirement to extend routine equalities data collection.