The Scottish Government

The Robert Owen Foundation

• Scotland's rate of new business creation in both rural and urban areas falls below the UK national average, yet Scottish Enterprise's Business Birth Rate Enquiry identified that 38% of Scotland's population have the potential to start a new business, but are not progressing their ideas.
• Many potential rural entrepreneurs may recognise entrepreneurial characteristics in themselves, but lack the confidence to progress their ideas and desires beyond the "just thinking about it" stage. It is hoped that this guide will give them a better idea of how to begin the process and that they will have more confidence that they can succeed.
• Some kinds of business are better placed to survive because of their location, but what makes the difference between success and failure are the 'fundamentals' of the business and the ability of the entrepreneur to adapt to the rural location. Successful entrepreneurs turn rural 'hurdles' into opportunities with the use of new technology, careful planning and marketing.
• The rural setting of a business can be used as an advantage by using the fresh, natural image of rural Scotland or its heritage and traditions as a marketing tool.

• gives an insight into the process of starting a new business;
• illustrates the experiences of others who have succeeded in rural areas;
• highlights the opportunities to be gained from working in the countryside; and potential problems or obstacles, to starting a business in a rural area;
• provides further sources of information and advice.

• a farm tea-room
• an ice-cream manufacturer
• a rural workshop
• a new tourism business
• a country hotelier
• two young entrepreneurs.

• The Right Product

It is important to research the market carefully and then to match the product to its environment. Some have traded on rural heritage, traditions and the clean rural environment, whilst others have recognised and acted upon the potential of their rural location to tourists and visitors.

• Careful Planning

A successful new business is well planned with a sound financial basis and carefully thought out in advance. In all of the case studies, expansion plans have been handled with caution, clever diversification from the original main theme has brought in additional customers and revenue, and good use has been made of whatever public sector grants and soft loans are available to them.

• Involvement of Local People

For some, a major factor in their success has been the involvement of a local workforce. In rural areas, staff tend to be more flexible and committed and for small new businesses, this commitment and flexibility is vital in the early stages.

• Willingness to Accept Advice

Successful entrepreneurs are prepared to listen to others and are not too proud to accept advice or admit a need for training in some areas. They recognise that they cannot know everything about business and have been grateful for timely advice or training from various bodies and organisations.

• A Supportive Network

Strong family and social networks in rural areas have provided support for new entrepreneurs whether moral, material or financial.

• Dedication

To succeed in any new venture, you need to be dedicated, committed totally to the venture and prepared to work hard.

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