Rural businesses can get support from various networks and schemes, including social enterprise organisations and the Scottish Government.

Overview

Rural areas face many of the same economic challenges as the rest of Scotland. However, some circumstances are particular to rural communities.

Many aspects are positive, such as quality of life and high staff loyalty. However, rural businesses need to cope with a sparse population, distance from markets, fewer job opportunities and limited availability of development sites.

If you are thinking about starting or growing a business in a rural area, there are networks and support schemes that can help.

The rural economy in Scotland

Rural Scotland accounts for 95 per cent of Scotland's land area and 18 per cent of the population. Self-employment rates in rural areas tend to be higher than in larger towns and cities.

Agriculture is an important sector in rural Scotland, but the rural economy is diverse and a rural business can be just about anything. Some farm owners start businesses on the side to supplement their income.

Many rural businesses are social enterprises.Social enterprises are businesses that invest their profits back into projects which benefit the community.

The Scottish Government initiative, Just Enterprise, can provide support for social enterprises across Scotland. 

The Highlands and Islands Social Enterprise Zone provides advice and guidance to social enterprises that are looking to develop and organisations that are interested in exploring the social enterprise option. 

The Scottish Government also has information on support in rural areas.

Government support for rural businesses

The Scottish Government offers a range of financial and developmental support to rural business owners in Scotland.

The Scotland Rural Development Programme is a £1.5 billion government programme of economic, environmental and social measures designed to develop rural Scotland between 2007-2013.

Funds will be distributed through seven schemes:

• Crofting Counties Agricultural Grant Scheme - provides assistance towards improving the viability of croft businesses
• Food Processing, Marketing and Co-operation Grant Scheme - promotes sustainable and profitable food production throughout Scotland
• Forestry Commission Challenge Funds - aims to improve the condition of existing woodlands for the benefit of local people
• LEADER Initiative - promotes economic and community development within rural areas
• Less Favoured Area Support Scheme - compensates the farmers and crofters who farm in the most disadvantaged areas of Scotland with annual area-based payments
• Rural Development Contracts - Rural Priorities - aims to contribute to business viability and competitiveness, water quality, adaptations to climate change, biodiversity and landscapes, and thriving rural communities
• Skills Development Scheme - offers support for group skills development initiatives for land managers, including farmers, crofters and foresters

The Scottish Government Rural Payments and Inspections Directorate (SGRPID) offers assistance to the agricultural sector to keep Scottish producers competitive and improve practices in the industry. Their support includes business development schemes, grants and agricultural subsidy payments.

The Scottish Government website has a full list of grants, subsidies and services available to agricultural businesses. You can get more information from your local SGRPID office.

Highlands and Islands Enterprise (HIE) can support businesses in designated 'fragile areas' in the Highlands and Islands. These include small businesses which might not be eligible for assistance elsewhere. You can get more information from your local HIE office.

Some local councils offer programmes to support rural business development. 

You can also benefit from the free advice offered by Business Gateway. Contact your local office for more details.