An entrepreneurial countryside

Small businesses in the countryside are dynamic, diverse and doing better than ever before, according to the first definitive study of entrepreneurs in the rural economy.

The FSB study, An Entrepreneurial Countryside, is based on more than 18,000 responses and runs contrary to some perceptions that running an SME in the countryside is an uphill struggle.

It offers a snapshot of a vibrant rural small business sector where entrepreneurs are the hub of a village and key employers in the local community.

Almost half of rural respondents started their business in the last five years (17 per cent in business for six to 10 years, 11 per cent from 21-30 years). The majority (58 per cent) hope to expand, while only three per cent want to downsize and two per cent want to close down.

The country is home to a diverse range of small businesses. Some 16 per cent operate in retail, wholesale and motor trades; 12 per cent provide business services and manufacturing; 11 per cent work in agriculture with a similar number involved in construction.

Operating from home

Access to the internet has resulted in an increasing number of small businesses choosing to operate from home with the result that more rural than urban businesses now operate from their home, with one third (35 per cent) stating this is their main premises (compared to 20 per cent of urban businesses).

FSB Rural Affairs Chairman John Holbrow said: "The opportunities for small businesses in the countryside are endless. However, the correct infrastructure and business support must be in place for small employers to best exploit the economy wherever they are located."