Exploring the contribution of rural enterprises to local resilience

Abstract

a b s t r a c tThe economic importance of the private sector, such as the contribution of businesses to Gross Domestic Product or to employment creation, is well recognised in research and policy. In the context of significant economic, social and environmental changes such as the economic downturn, public spending cuts, an ageing population and climate change, the broader social and environmental contributions of the private sector to local resilience have begun to be recognised by researchers and policy-makers. However, we lack a detailed understanding of the nature of, and motivations for, these different contributions.This paper discusses the findings of a case study in South Australia which aimed to enhance our understanding of the role of private sector enterprises in local development and resilience. In particular, this article explores What, How and Why questions: What are the economic and social contributions of rural businesses to local resilience?, How are these contributions made? and Why do business owners make these contributions?The findings reveal that rural businesses contribute to local resilience in both direct and indirect ways. Direct contributions include, for example, the creation of local employment and local product and service delivery. Indirect contributions can be understood as the knock-on effect or added value of primary business activities. For example, the provision of employment opportunities helps to reduce the risk of out-migration and depopulation. With reference to the concept of embeddedness, the study demonstrates the importance of the rural context in shaping the behaviour of rural business owners and encouraging them to operate in economically, socially and environmentally responsible ways. However, this is not a passive relationship; rural business owners have the motivation and resources to respond to specific local challenges, opportunities and characteristics, and to proactively and skilfully turn them into entrepreneurial opportunities. As such, they become part of the adaptation process, acting as agents of change in supporting rural resilience. This adaptation process contributes to enhanced community resilience which enables the modification of existing structures and the seeking of solutions to economic, social and environmental challenges.

The Role of Small and Medium-Sized Enterprises in the Development of Rural Areas

“…These aspects are in accordance with the main literature stream on rural development, which highlights mainly the economic and social contribution of enterprises to rural development (see for example Fink, Loidl and Lang, 2014). Steiner and Atterton (2015) also explored the contribution of rural enterprises from Australia to the rural development and divided them into economic, social and environmental categories. In accordance with our results they highlighted these aspects of rural enterprises: the creation of vacancies, product / service delivery and promotion of location (in our paper incorporated under the increase in rural area attractiveness), engagement with local community, training opportunities (in our paper called the deepening of ties between apprentices and practice), financial benefits in terms of sponsorship of local events or sport clubs etc.…”

Rural Arts Festivals as Contributors to Rural Development and Resilience

“…The importance of economic diversification has been explored by Steiner and Atterton () as a key aspect of building resilience of rural communities. They focus particularly on the contribution of private enterprises in terms of direct (e.g., employment, service provision) and indirect (e.g., maintaining working age population in the local area or contributing to quality of life and wellbeing impacts on rural resilience ()).…”

“…The importance of economic diversification has been explored by Steiner and Atterton () as a key aspect of building resilience of rural communities. They focus particularly on the contribution of private enterprises in terms of direct (e.g., employment, service provision) and indirect (e.g., maintaining working age population in the local area or contributing to quality of life and wellbeing impacts on rural resilience ()). They also report the likelihood of these businesses networking with other businesses and entities within and outside the locality thus broadening and strengthening the community’s network of relations, as well as developing bridging relationships (Granovetter ), an important form of social capital that provides stability to local economies and communities (Steiner and Atterton ).…”

Leveraging new knowledge with relational capabilities

“…However, both assertions of the term are in agreement concerning the role social capital plays in engendering change and promoting local development (Rydin and Holman, 2004;Woolcock, 1998). Rural communities are experiencing several fronts of change that are a consequence of global problems such as cycles of economic downturn, generalised public spending cuts and an ageing population (Steiner and Atterton, 2015;Steiner and Cleary, 2014). The capacity of these regions to respond and reorganise is often acknowledged to depend on community resilience, i.e.…”